sustainability

Article
Impact of Digital Transformation toward Sustainable Development
Mohammed Alojail 1 and Surbhi Bhatia Khan 2, *

1 Department of Management Information Systems, College of Business, King Saud University,

P.O. Box 28095, Riyadh 11437, Saudi Arabia; [email protected]
2 Department of Data Science, School of Science, Engineering and Environment, University of Salford,
Salford M5 4WT, UK
* Correspondence: [email protected]

Abstract: The rapid advancements in digital technologies have prompted organizations to embrace
digital transformations (DTs) in order to enhance efficiency, gain a competitive advantage, and
achieve long-term sustainability objectives. However, the successful adoption of innovative digital
technologies necessitates the careful consideration of various factors, such as stakeholder engagement,
resource allocation, risk mitigation, and the availability of resources and implementation support.
This study examines the sustainable adoption of innovative digital technologies (DTs) within digital
transformations. The data for this study were collected from 760 stakeholders through a questionnaire
survey and analyzed using SPSS software (Version 27). This study’s results underscore the significance
of considering the efficiency of the transformation process and the long-term sustainability outcomes
for organizations. The findings of the analysis clarify that integrating sustainability principles and
DT has a positive impact on the effectiveness of the transformation, as indicated by environmental,
social, and economic performance indicators. This study’s novelty lies in its focus on incorporating
sustainability principles into the digital transformation process. The results of this study demonstrate
that organizations’ long-term sustainability outcomes are enhanced when their digital transformation
goals align with the Sustainable Development Goals (SDGs). The purpose of this study emphasizes
the importance of arranging digital transformations with sustainable objectives to ensure the overall
success and longevity of transformation efforts.

Keywords: digital transformation; sustainable development; digital technology; stakeholders;

economy; governance
Citation: Alojail, M.; Khan, S.B.
Impact of Digital Transformation
toward Sustainable Development.
Sustainability 2023, 15, 14697.
https://doi.org/10.3390/
1. Introduction
su152014697 The rapid development of the technological landscape has made digital transformation
(DT) an essential driver for organizational growth and success [1]. As businesses aim to
Academic Editor: Cheolho Yoon
remain competitive and adapt to evolving customer needs, the sustainable adoption of
Received: 6 July 2023 innovative digital technologies has emerged as a critical aspect of their digital transforma-
Revised: 1 September 2023 tion journey [2]. The concept of continuous digital transformation involves responsibly
Accepted: 20 September 2023 and durably integrating digital technologies into business processes while considering
Published: 10 October 2023 their environmental, social, and economic impacts. Achieving the sustainable adoption
of these innovative digital technologies requires organizations to carefully evaluate their
environmental footprint, optimize energy consumption, and minimize e-waste [3]. It also
Copyright: © 2023 by the authors.
involves addressing the social implications of technology adoption, such as privacy con-
Licensee MDPI, Basel, Switzerland.
cerns, ensuring inclusivity, and promoting digital literacy among employees and customers.
This article is an open access article By embracing sustainable practices in the adoption of innovative digital technologies, orga-
distributed under the terms and nizations can not only attain operational efficiencies and cost savings but also contribute to
conditions of the Creative Commons the greater good by reducing their carbon footprint, supporting social development, and
Attribution (CC BY) license (https:// driving economic growth [4].
creativecommons.org/licenses/by/
4.0/).

Sustainability 2023, 15, 14697. https://doi.org/10.3390/su152014697 https://www.mdpi.com/journal/sustainability

Sustainability 2023, 15, 14697 2 of 20

1.1. Digital Transformation in Today’s Hypercompetitive Environment

In today’s hypercompetitive environment, businesses are encountering unprecedented
challenges and opportunities due to rapid technological advancements. Digital transfor-
mation (DT) has emerged as a key strategy adopted by organizations to navigate this
landscape [5]. DT involves the integration of digital technologies into all aspects of business
operations, fundamentally changing how companies deliver value to customers and remain
competitive in the market. In this era of constant innovation and disruption, DT has become
imperative for businesses to survive and thrive [6]. DT enables businesses to gain a deeper
understanding of their customers and engage with them in a more personalized manner,
fostering stronger relationships. It also creates new avenues for revenue generation, such
as e-commerce platforms and digital marketplaces [7]. Additionally, digital transforma-
tion empowers employees by providing them with tools and technologies that enhance
collaboration and foster innovation.

1.2. Digital Technologies in Digital Transformation

Digital technology has emerged as a transformative force, revolutionizing various
aspects of our lives and reshaping the way businesses operate [8]. In the context of DT,
digital technology serves as the backbone for organizational change and innovation. It
enables businesses to streamline operations, optimize resource allocation, and create new
value propositions [9]. By using digital tools and platforms, organizations can collect and
analyze vast amounts of data, enabling data-driven decision-making and personalized
experiences for customers. Moreover, digital technology facilitates agile and collaborative
workflows, breaking down traditional barriers and enabling organizations to adapt quickly
to market demands [10]. It offers the potential to revolutionize business models, redefine
customer engagement, and drive operational excellence. Organizations that effectively
harness the power of digital technology in their digital transformation journey are well-
positioned to thrive in the digital era.

1.3. Sustainable Development Goals

One of the most important components of accomplishing the Sustainable Development
Goals (SDGs) of the United Nations is the sustainable adoption of innovative digital tech-
nologies in digital transformation. A collection of 17 global goals known as the SDGs was
created to solve urgent social, economic, and environmental issues and build a sustainable
future for all [11]. Several SDGs directly align with the topic of the sustainable adoption
of innovative digital technologies in DT. Goal 9, for instance, aims to build resilient in-
frastructure, promote inclusive and sustainable industrialization, and develop innovation.
This goal emphasizes the importance of developing digital technologies to drive economic
growth, enhance productivity, and support sustainable industrial practices [12]. Goal
7 focuses on ensuring access to affordable, reliable, sustainable, and modern energy for
all. Figure 1 shows the sustainable development sectors. By embracing the sustainable
adoption of innovative digital technologies in digital transformation, organizations can con-
tribute to these SDGs while driving positive change in areas such as education, healthcare,
agriculture, and environmental conservation [13].
Research questions and objectives:
RQ1: How can digital transformations contribute to social sustainability?
RQ2: What are the uses of digital transformation in the long-term sustainability of an
organization?
RQ3: What are the factors that influence the resource allocation and risk mitigation of
sustainable digital transformations?
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Sustainability 2023, 15, 14697 3 of 20

Figure 1. Sustainable development sectors.

Figure 1. Sustainable development sectors.
1.4. Contributions
1.4. Contributions
This study’s main contributions are as follows:
This study’s main contributions are as follows:
• Explores the sustainable adoption of innovative digital technologies in digital transfor-
• Explores the sustainable adoption of innovative digital technologies in digital trans
mations and its implications for organizations;
formations and its implications for organizations;
• Investigates the consequences of sustainable digital transformations on organizations’
• Investigates the consequences of sustainable digital transformations on organiza
long-term sustainability goals;
tions’ long-term sustainability goals;
• Explores the importance of effectively engaging stakeholders throughout the digital
• Explores the importance of effectively engaging stakeholders throughout the digita
transformation process;
transformation process;
• Examines•the resources
Examines and support required
the resources for organizations
and support to successfully
required for organizations to imple-
successfully im
ment sustainable digital transformations.
plement sustainable digital transformations.
The novelty ofThethisnovelty
study isof the
thisfocus
studyon incorporating
is the sustainability
focus on incorporating principles principles
sustainability into int
the process of digital transformation. This study recognizes that while DT can bring
the process of digital transformation. This study recognizes that while DT can bring abou about
efficiency improvements and competitive
efficiency improvements and advantages
competitive for organizations,
advantages it is important
for organizations, to
it is important t
consider long-term sustainability outcomes and address potential challenges related
consider long-term sustainability outcomes and address potential challenges related t to
stakeholder engagement,
stakeholder resource
engagement, allocation,
resource and risk mitigation.
allocation, and risk mitigation.
The remainingThesections
remaining sections of this study as
of this study are arranged arefollows.
arranged The
as literature
follows. Thereview is in review
literature
Section 2, the theoretical framework of the study is in Section 3, the conceptual framework
in Section 2, the theoretical framework of the study is in Section 3, the conceptual frame
is presented inwork
Section 4, the methodology
is presented in Section 4, the is proven in Section
methodology 5, theinstudy
is proven Section results
5, the arestudy result
explained in Section 6, and finally,
are explained in Sectionthe6,paper is concluded
and finally, in Section
the paper 7. in Section 7.
is concluded

2. Literature Review
The findings of earlier research studies that are pertinent to the current study are
summarized in this section. This section discusses digital transformation and sustainability,
with a constant emphasis of its adoption in DT, and implementing innovative technologies
Sustainability 2023, 15, 14697 4 of 20

in digital transformation. The review also identifies the research gaps that the current
research needs to fill.

2.1. Digital Transformation and Sustainability

The world has undergone numerous changes over the years as a result of industrial
development and technological advancements. At the moment, markets are characterized
by volatility, uncertainty, complexity, and ambiguity, which are the primary forces behind a
phenomenon known as digital transformation. The interrelation between sustainability and
DT at the corporate level was reviewed by Gomez and Gonzalez in 2022 [14]. The research
used a methodical review of 89 published studies. Comprehensive content analysis filters
were applied. The study found that a framework for research that sees DT as a precursor
and driver of sustainability is achievable. For businesses to survive the digital revolu-
tion, the report advised them to (i) increase digital skills and (ii) balance their economic,
(iii) environmental, and (iv) social implications. The risks and opportunities that informa-
tion and communication technologies present for environmental sustainability, as well as
the political awareness of these risks and opportunities, grow more important as their use
in industrial production increases. The policies in the industrial and digital sectors of three
East Asian and Pacific Island countries as well as four Sub-Saharan African countries were
evaluated by Kunkel and Matthess in 2020 [15] regarding the anticipation-concerning ef-
fects of ICTs on professions for environmental constants. The analysis showed that policies
emphasize a wide variety of hazy expectations and place a greater emphasis on the positive
benefits of information and communication technology use.

2.2. Importance of Sustainable Adoption in Digital Transformation

Companies face enormous challenges as a result of DT, which transforms industries
and necessitates the development of new change-adoption strategies. Businesses and
industries are going through a significant transformation that will result in digitized busi-
ness operations. Companies are being forced to develop completely new strategies as a
result of digitization, which is also driving all business processes. Ukko et al. (2019) [16]
investigated the connections between financial performance, a sustainability strategy, and a
digital business strategy. Two management and operational skills are necessary, according
to the report, to put a digital business plan into practice. The results demonstrated that
a sustainability plan facilitates the interrelation between a digital company strategy and
financial performance. According to the study, the sustainability strategy supported the
link between managerial competence and financial performance. However, there was a neg-
ative correlation between operational capability and financial performance when using the
sustainability strategy. Universities have undergone several significant changes in recent
decades as a result of social and technological trends toward digitalization. Currently, a
paradigm shift in which technology is conceived as a complex and interconnected environ-
ment that enables digital learning is related to the adoption of technologies by universities.
Abad et al. (2020) [17] analyzed the international research trends of the effects of managing
the DT of higher-education sustainably. The study found that there is a significant impact
on the adoption of new technologies in higher education.

2.3. Implementing Innovative Digital Technologies for Digital Transformation

Digitally enabled enterprises are supported by new information and communication
technologies (ICTs), often known as new technologies, which increasingly provide sig-
nificant prospects for growth. The study by Loonam et al. investigated the procedures
needed to implement DT inside conventional businesses. It identified four key themes
that companies should adopt when implementing practical changes to digital business
models (Loonam et al., 2018) [18]. According to Bican and Brem (2020) [19], digitalization
significantly contributes to the UN Sustainable Development Goals. Future economic and
environmental challenges cannot be resolved sustainably without the transformation of
existing businesses. To develop a general understanding and definition that would serve as
Sustainability 2023, 15, 14697 5 of 20

the foundation for the interrelations within a conceptual framework, the study examined
the prior literature. Based on a systematic literature review within the fields of management
and economics, the research identified seven key terms related to digitalization, namely,
digital, business model, digital business model, digital technology, digital innovation,
digital transformation, and digital entrepreneurship.

2.4. The Process of Integrating Spatial Data Infrastructures (SDIs) into the Information
Infrastructure of EU Countries Is Achieved by Decrees
Spatial data infrastructure (SDI) involves the collection of innovations and technolo-
gies, organizational arrangement, and the strategies that supply a foundation for spatial
data discovery. SDI mainly includes GPS, remote sensing, geographic information system
(GIS), and other technologies regarding this. As an example, with regard to a small island
developing state, i.e., the Dominican Republic, which is vulnerable to natural disasters
like hurricanes, earthquakes, etc., SDI helps in sharing information, while emergency map-
ping operations (EMOs) assist in decision-making. The evaluation of future outlines for
SDI implementation to reach emergency mapping objectives needs the consideration of a
broad range of stakeholders with contrasting objectives. In the reference study, multi-actor
multi-criteria analysis (MAMCA) introduced a road map to collaboration between different
parties who were all devoted to implementing an SDI that offers a framework for EMOs
during emergency conditions (Rosario Michel and Gonzalez-Campos, 2023) [20].

2.5. Comparative Methods of Geoportal Functionality Are Used for Research

Soldatke et al. (2023) [21] in their study explained the differences in the spatial evolu-
tion of seaside towns in the course of as well as outside the summer season according to the
illustration of the Polish towns of Puck and Wladyslawowo. They also examined as well
as assessed the tourist services which have been offered in those towns, developing per-
manent solutions, providing tourism seasonality, the implementation of spatial tools, local
residents’ points of view on tourist traffic, the development of resorts for tourists, and the
many developments regarding the spatial development projects in those particular towns.

2.6. An Important Element for Sustainable Development Is the Introduction of Protective Rights of
Land, Infrastructure above, in, and below the Ground, and Special Markings on Maps and
ISO Standards
Developing an infrastructure is an essential criterion and the development of a geospa-
tial data infrastructure has been introduced to collaborate and exchange information at the
national level as well as simultaneously develop the INSPIRE geoportal of the European
Commission’s Community Research Center. In using these, they have found novel chal-
lenges as well as opportunities to solve the problems. The study conducted by Ogryzek
et al. (2019) [22] showed that there is a possibility of the evolution of maps which indicate
utility networks as well as the rights for land which is obtained by utility companies. The
information regarding remote sensing methods is helpful for the exposure of rights on
maps of a technical framework, as at present, there are no details available in the systems.
The progressed result can be used by both local as well as national geoportals.

2.7. There Have Been a Number of Initiatives across Europe to Improve Spatial Data
Infrastructures Run by Both Public and Private Administrations
The British are acknowledged as the leading experts on spatial data infrastructure and
the lately released book which is reviewed by GIS professionals on creating spatial data
infrastructure. In this book, there are four chapters. In the first chapter, the authors explain
the uses of GIS, which focuses on their application as well as AGI role in outreaching work.
In the second chapter, they explain how it works prior to introducing SDIs and what they
actually are along with why they are necessary. In the third chapter, the authors discuss
the available SDIs in Europe which can be seen in the Czech Republic, Germany, Finland,
France, Northern Ireland, and Lithuania. The fourth chapter describes the most practical
Sustainability 2023, 15, 14697 6 of 20

implications regarding this and promises advantages up to 10 times the cost (Masser and
Crompvoets, 2007) [23].

2.8. Research Gap

In light of the findings of the current literature analysis, it is crucial to explore the
sustainable adoption of innovative digital technologies in DT. A questionnaire survey ap-
proach was used in the study to obtain the primary information from respondents. Research
indicates that the sustainable adoption in DT projects benefits from effective governance by
enhancing stakeholder engagement, resource allocation, and risk mitigation for successful
implementation and outcomes. From the previous research, it was found that there is no
explanation in detail about the combination of digital transformation and sustainability
principles. The role of innovative digital technologies in promoting business organizations
has not been elaborated on in previous studies; it is unclear from the research how to
achieve sustainability goals in DT initiatives. There is no clear explanation of the correlation
between digital technologies in DT. The innovation of digital technologies appears to have
a significant influence on the long-term sustainability outcomes for organizations, although
this is not well explained. Therefore, the objective of this study is to explore the importance
of the sustainable adoption of innovative digital technologies in DT.

3. Theoretical Framework
The theoretical framework discusses the efficiency of the transformation, long-term
sustainability outcomes for organizations, competitive advantage, governance, and manage-
ment: stakeholder engagement, resource allocation, risk mitigation, resources and support
for successful implementation, and sustainability goals in digital transformation initiatives.

3.1. The Efficiency of the Transformation

DT is the process of integrating digital technologies into various aspects of a business,
leading to significant changes in its operations, strategies, and overall value proposition [1].
DT improves operational efficiency by automating manual processes and streamlining
workflows. By implementing digital tools and technologies, organizations can eliminate
repetitive and time-consuming tasks, reduce human errors, and increase productivity. This
allows employees to focus on more strategic and value-added activities, ultimately leading
to improved performance across the team. DT improves communication and collaboration
within and outside the organization [24]. By adopting digital platforms such as project
management tools, instant messaging, and video conferencing, teams can collaborate in
real time regardless of their location. DT enables organizations to implement data analytics
and business intelligence tools through which organizations can gain valuable insights into
customer behavior, market trends, and operational performance [25]. By leveraging these
insights, companies can make data-driven decisions, improve their strategies, and identify
areas for improvement, thereby improving performance and staying competitive in the
digital age [26].

3.2. Long-Term Sustainability Outcomes for Organizations

DT can improve operational efficiency, improve customer experiences, and drive
innovation, while also having significant long-term sustainability consequences for orga-
nizations [27]. DT helps companies reduce their environmental footprint. By leveraging
digital technologies, organizations can streamline processes, automate tasks, and reduce
the need for physical resources. This leads to reduced energy consumption, reduced carbon
emissions, and reduced waste generation [28]. DT develops a culture of innovation and
agility within organizations. DT promotes collaboration and knowledge sharing within
organizations and across supply chains. By implementing collaborative digital platforms
and communication tools, companies can reduce the need for physical travel, leading
to reduced transportation-related emissions [29]. DT enables organizations to engage
with stakeholders and customers in more sustainable ways. Through digital channels,
Sustainability 2023, 15, 14697 7 of 20

companies can communicate their sustainability efforts, promote eco-friendly products

and services, and educate consumers about responsible consumption [30]. This will lead
to increased customer loyalty, brand reputation, and ultimately a more sustainable busi-
ness environment.

3.3. Competitive Advantage

DT involves leveraging emerging technologies such as artificial intelligence, machine
learning, cloud computing, big data analytics, and the Internet of Things (IoT) to drive
innovation, streamline operations, and deliver enhanced value to customers [31]. The
benefit of DT lies in the ability to collect, analyze, and leverage vast amounts of data to
derive actionable insights. Advanced analytics and data-driven decision-making can help
organizations improve their operations, personalize customer experiences, and identify
new growth opportunities. Also, DT helps organizations improve their agility and respon-
siveness to changing market dynamics. The adoption of digital platforms and automation
helps companies improve efficiency, reduce costs, speed up the time to market, and adapt
quickly to customer needs [32]. By leveraging digital channels, personalized marketing
strategies, and omnichannel capabilities, companies can engage with customers across mul-
tiple touchpoints, address their needs, and deliver tailored solutions, building loyalty and
differentiation in the marketplace. A competitive advantage in DT is achieved by aligning
technology investments with strategic objectives, continuously innovating and adapting to
digital trends, and encouraging a culture of digital agility and customer centricity [33].

3.4. Governance and Management: Stakeholder Engagement, Resource Allocation, and

Risk Mitigation
Governance and management play a vital role in ensuring the success of DT [34].
Stakeholder engagement involves the active involvement and participation of stakeholders
throughout the transformation journey. This includes employees, customers, suppliers,
and other related parties. Engaging stakeholders allows organizations to gather valuable
insights, address concerns, and create a shared vision for change. Resource allocation
is another important component of administration and management [35]. DT often re-
quires significant investments in technology infrastructure, talent acquisition, training, and
process redesign. Effective resource allocation involves identifying and prioritizing the
resources needed for successful change, ensuring their availability and appropriate use.
Risk mitigation is an integral part of governance in DT. This process involves identifying
potential risks and developing strategies to minimize their impact. Risks include techni-
cal challenges, security threats, resistance to change, and regulatory compliance issues.
Through proactive risk assessment and mitigation planning, organizations can anticipate
and address potential obstacles, ensuring a smooth transition process. Governance and
management of DT require active stakeholder engagement, strategic resource allocation,
and robust risk mitigation strategies [36]. By adopting a comprehensive approach to these
areas, organizations can increase their chances of achieving successful DT outcomes.

3.5. Resources and Support for Successful Implementation

A successful DT requires careful planning, execution, and ongoing support. Building
a team of individuals with diverse skills and expertise in areas such as technology, project
management, change management, and data analytics will play a key role in driving DT [37].
Engaging experienced consultants specializing in DT to provide guidance, best practices,
and strategic insights will help assess the current state, define a roadmap for change,
and provide support throughout the implementation process [38]. The implementation
of collaboration tools and platforms facilitates communication and knowledge sharing
among employees. Collaborating with technology vendors and partners who can provide
technical expertise, support, and innovative solutions will also help ensure access to
the latest advances in technology [39]. By adopting resources and support mechanisms,
Sustainability 2023, 15, 14697 8 of 20

organizations can increase the likelihood of successful DT, business growth, improved
efficiency, and improved customer experiences [40].

3.6. Sustainability Goals in Digital Transformation Initiatives

Considering sustainability in digital strategies can help organizations achieve multiple
objectives. DT initiatives can enable energy efficiency and resource optimization [41]. Using
digital tools and technologies can help businesses streamline processes, reduce paper usage,
reduce waste, and improve energy consumption. This leads to less environmental impact
and cost savings. Sustainable DT efforts prioritize the use of renewable energy sources.
Adopting cloud computing, virtualization, and data centers powered by renewable energy
also reduces greenhouse gas emissions [42]. DT will encourage a shift toward remote
work and virtual collaboration, reducing travel-related carbon emissions and supporting a
more sustainable work environment [43]. Integrating sustainability goals into DT efforts
empowers organizations to adopt eco-friendly practices, optimize resource use, reduce
environmental impact, and contribute to a more sustainable future.

4. Conceptual Framework
This study investigates the significance of the long-term adoption of cutting-edge
digital technologies in DT. The presented conceptual framework illustrates the key concepts
related to innovative digital technologies in DT. This study formulated hypotheses H1,
H2, H3, H4, H5, and H6. Figure 2 shows the conceptual framework of this study. The
efficiency and productivity of the DT implementation process within an organization
involves improving workflows, streamlining operations, and efficiently achieving desired
outcomes. It refers to the results and impacts an organization wants to achieve through
DT, which are sustainable and provide ongoing benefits beyond the initial implementation
phase. The specific goals or objectives an organization sets to achieve sustainable outcomes
through DT may relate to environmental sustainability, social impact, ethics, or economic
Sustainability 2023, 15, x FOR PEER REVIEW 9
development. How these key concepts interrelate and influence the context of DT and
sustainability in organizations can show relationships between performance, sustainability,
competitive advantage, governance and management, resources and support, technology,
and sustainable goals, contributing to successful and sustainable DT efforts.

Figure 2. Conceptual framework.

Figure 2. Conceptual framework.

4.1. Digital Transformation and Sustainability Principles

Adopting digital technologies can help companies improve their operations, st
line processes, and reduce resource consumption, leading to a lower carbon footprin
Sustainability 2023, 15, 14697 9 of 20

4.1. Digital Transformation and Sustainability Principles

Adopting digital technologies can help companies improve their operations, stream-
line processes, and reduce resource consumption, leading to a lower carbon footprint
and improved environmental performance [44] DT enables improved transparency and
accountability, allows organizations to actively engage with stakeholders, and addresses
social issues such as diversity, inclusion, and ethical practices [45]. This integrated approach
promotes a more sustainable and resilient future for businesses and society as a whole.
H1. The combination of digital transformation and sustainability principles positively influences
the efficiency of the transformation which can be measured by environmental, social, and economic
performance indicators.

4.2. Digital Transformation Goals and Long-Term Sustainability Outcomes for Organizations
Aligning DT goals with SDGs can lead to increased long-term sustainability outcomes
for organizations. By integrating the SDGs into their DT strategies, organizations can
contribute to these broader social goals while reaping many benefits [46]. DT can enable
more efficient and sustainable operations. Technologies such as data analytics, IoT, and
artificial intelligence can improve resource consumption, reduce waste, and improve overall
productivity, leading to cost savings and reduced environmental impact. SDGs can improve
a company’s reputation and brand value, as it demonstrates a commitment to social and
environmental responsibility. It will attract customers, investors, and talent who prioritize
sustainability [47]. DT can enable more efficient and sustainable operations. Hence, we
can state,
H2. Aligning digital transformation goals with SDGs increases long-term sustainability outcomes
for organizations.

4.3. Digital Technologies Have a Significant Impact on Organizations’ Competitive Advantages

The digitalization of an economy is one of the most crucial elements in establishing
sustainable competitive advantages for the entire economy. The distinction between busi-
ness and technology functions is becoming blurrier as traditional industrial structures
and business models are destroyed [48]. Technology now plays a significant role in the
global economy and provides a sustained competitive edge. Today’s IT startups compete
for digital innovation by developing solutions that draw on and generate synergies in
industries like healthcare and home automation [49]. Reusable solutions made possible by
innovators allow regional teams to design and gain a competitive edge by using their goods
and services [50]. The most widely used digital platforms have an impact on markets,
society, and people. Creating a new economic arena and altering how operations are carried
out has altered the global economy. Consumers and businesses have seen a significant
economic effect as a result.
H3. Digital technologies focusing on sustainability gain organizations a competitive advantage.

4.4. A Digital Transformation Plan Influences Effective Management

Governance is one of the most crucial elements in managing digital change. To
prevent and lower the risk of DT, good governance is essential. There are dangers in
every digitization project, but these can be minimized by using a strong approach to
DT governance [51]. Due to the complicated and disruptive nature of such initiatives,
stakeholder engagement is extremely important in the context of DT projects. Major
adjustments to an organization’s processes, technologies, and culture are frequently a part of
DT [52]. The project’s success depends on managing stakeholder expectations and fostering
a collaborative environment. Project managers can create a common understanding of
project goals, recognize and reduce potential risks, allocate resources effectively, and win
the support of all pertinent parties by successfully engaging stakeholders [53]. Stakeholder
involvement also makes it easier to receive ongoing feedback and make improvements,
which ultimately increases the likelihood that a digital transformation will be successful.
Sustainability 2023, 15, 14697 10 of 20

H4. Sustainable adoption in digital transformation projects benefits from effective governance by
enhancing stakeholder engagement, resource allocation, and risk mitigation for successful implemen-
tation and outcomes.

4.5. Digital Transformation Has a Significant Impact on Successful Business Execution

As sustainability becomes a growing concern for businesses and society as a whole,
organizations are recognizing the need to prioritize sustainable practices. By highlighting
the sustainability benefits of a DT plan, it becomes easier to gain support and resources from
stakeholders who value environmental and social responsibility. A comprehensive DT can
lead to significant cost savings in the long term [54]. By implementing digital solutions and
automation processes, businesses can streamline operations, reduce waste, and improve
resource allocation. DT efforts often result in improved efficiency, agility, and customer ex-
perience. By using technology to deliver sustainable solutions, businesses can differentiate
themselves from competitors and position themselves as industry leaders in sustainability
practices [55]. This will attract investors, partners, and customers who prioritize sustainable
businesses, leading to increased resources and implementation support.
H5. Prioritizing a comprehensive digital transformation business case with sustainability benefits
and multidimensional returns increases resources and support for successful implementation.

4.6. Innovative Digital Technologies Influence Sustainability Goals in Digital

Transformation Initiatives
The use of innovative digital technologies plays an important role in achieving sus-
tainability goals. These technologies include artificial intelligence, IoT, blockchain, cloud
computing, or data analytics [56]. By developing these technologies, companies can im-
prove resource use, reduce waste, and improve overall efficiency, thus contributing to
sustainability objectives. The successful integration of digital technologies into a company’s
existing infrastructure is essential. This integration ensures that technologies communicate
effectively with each other and with other business processes [57]. By integrating digital
solutions, organizations can streamline operations, reduce redundancies, and improve their
ability to effectively address sustainability challenges. Successful DT and sustainability
initiatives require the engagement of various stakeholders, including employees, customers,
suppliers, and communities [32]. Involving stakeholders throughout the process helps
create a shared vision, encourages collaboration, and develops a sense of ownership.
H6. Implementing innovative digital technologies with robust integration, change management
strategies, and stakeholder involvement significantly contributes to achieving sustainability goals in
digital transformation initiatives.
Although some previous studies have supported the hypotheses proposed in this
section, further empirical evidence is needed for the research to be successful. Therefore,
the research used specific methods presented in the sections below to show that all the
proposed hypotheses are true.

5. Research Methods
This methodology section describes the methods used to carry out the suggested study.
So, the methodology used in the current study is quantitative. SPSS software has been used
in the study, i.e., IBM SPSS 29 version. This software is used for a reliability test, ANOVA
test, as well as Chi-square test. SPSS software is used in the methods because it is helpful
in performing statistical and quantitative data analysis. In the study conducted by Bao
and Zhang (2023) [58], they discussed the impact of digital transformation on enterprise
innovation performance under the background of information management based on SPSS
statistical software. From the inspiration of that study, we have taken the SPSS software
methodology to gain the desired results. Data were gathered using a primary-instrument
questionnaire survey to analyze the study’s purpose. The methodology used in this study,
Sustainability 2023, 15, 14697 11 of 20

including the research design, data collection, and processing and analysis of the data, is
covered in detail in the section that follows.

5.1. Research Design

The study adopted a descriptive quantitative research design based on the research
question, research objectives, phenomena of interest, population, and the sample of the
current study. These quantitative research methods place a strong emphasis on numerical,
statistical, and/or statistical analysis of data gathered through questionnaire surveys.

5.2. Data Collection

The data used in this study were gathered between 8 January and 17 March 2023. A
questionnaire survey was conducted online among stakeholders over the age of 25 in Saudi
Arabia who were sustainability practitioners, IT professionals, industry experts, ICT users,
and stakeholders. A total of 760 individuals ultimately took part in the survey. In Table 1,
the demographic traits are listed. Gender shows that 50.53% of respondents were male, and
49.47% of respondents were female, thus the majority of respondents were male. According
to the age group, 13.95% of respondents were between the ages of 25 and 34, 59.61% were
between the ages of 35 and 44, and 26.45% were over the age of 45. In terms of profession,
25.26% of the respondents were sustainability practitioners, 25.13% of the respondents
were IT professionals, 24.74% of the respondents were industry experts, and 24.87% of the
respondents were ICT users and stakeholders. Regarding professional experience, 23.16%
of respondents had experience of 15 years or more, followed by 28.68% who had experience
of 5 to 10 years, and 48.16% who had experience of 11 to 14 years.

Table 1. Demographic details of the respondents.

Category Sub-Category Frequency Percentage

Male 384 50.53
Gender
Female 376 49.47
25–34 years 106 13.95
Age group 35–44 years 453 59.61
45 years and above 201 26.45
Sustainability Practitioners 192 25.26
IT Professionals 191 25.13
Occupation
Industry Experts 188 24.74
Users and Stakeholders 189 24.87
5–10 years 218 28.68
Experience 11–14 years 366 48.16
15 years and above 176 23.16

5.3. Reliability and Measurement Analysis

The current study investigates how innovative digital technologies are adopted sus-
tainably in the context of DT. In Table 2, environmental performance, social performance,
and economic performance make up the first-factor efficiency. Second, three components
make up the sustainability outcomes factor: environmental sustainability, social sustain-
ability, and economic sustainability. Third, the competitive advantage factor is made up
of four components: attracting and retaining top talent, enhanced brand reputation and
customer loyalty, access to new markets and business opportunities, and cost efficiency
and resource optimization. Fourth, the governance and management factor is made up of
three components: risk reduction, resource allocation, and stakeholder engagement. Fifth,
stakeholder support, human resources, organizational leadership and sponsorship, and
Sustainability 2023, 15, 14697 12 of 20

financial resources make up the resources and support factor. The sixth-factor sustainabil-
ity goals are made up of two components: social inclusivity and equity and ethical and
responsible technology use.

Table 2. Measurement reliability, mean, and SD.

Factors Variables No. Questions SD Mean Reliability

Environmental Performance 3
Efficiency Social Performance 2 1.036 4.073 0.898
Economic Performance 3
Environmental Sustainability 3
Sustainability Social Sustainability 3 1.296 2.791 0.85
outcomes
Economic Sustainability 2
Cost Efficiency and Resource Optimization 3

Competitive Enhanced Brand Reputation and Customer Loyalty 2

advantage 1.361 3.258 0.86
Access to New Markets and Business Opportunities 3
Attraction and Retention of Top Talent 3
Stakeholder Engagement 2
Governance and
Resource Allocation 3 1.035 3.355 0.801
management
Risk Mitigation 3
Stakeholder Support 3

Resources and Human Resources 2

1.307 2.217 0.932
support Organizational Leadership and Sponsorship 2
Financial Resources 3

Sustainability Social Inclusivity and Equity 3

1.808 3.607 0.908
goals Ethical and Responsible Use of Technology 2

The items were created using the items that had been used in earlier studies. For
internal consistency, the items’ Cronbach’s alpha values were examined. In general, mea-
surements are regarded as being accurate if their Cronbach’s alpha values are 0.6 or higher.
The Cronbach’s alpha for every variable used in this study was higher than 0.7. Table 3
provides the results of the reliability analysis.

Table 3. Frequency of acceptance.

Hypotheses Statements Disagree Neutral Agree

I have observed that digital transformation and sustainability 22 77 661
Hypothesis 1 principles enhance efficiency, resulting in improved environmental,
social, and economic performance indicators. 2.89% 10.13% 86.97%
I feel like aligning digital transformation goals with SDGs improves 45 85 630
Hypothesis 2 long-term sustainability outcomes, positively impacting society and
5.92% 11.18% 82.89%
the environment.
In my opinion, digital technologies prioritize sustainability, giving 30 92 638
Hypothesis 3 organizations a competitive advantage and contributing to a
sustainable future. 3.95% 12.11% 83.95%
Sustainability 2023, 15, 14697 13 of 20

Table 3. Cont.

Hypotheses Statements Disagree Neutral Agree

I believe that effective governance practices in digital transformation 7 161 592
Hypothesis 4 projects lead to sustainable adoption, stakeholder engagement,
resource allocation, and positive outcomes. 0.92 21.18% 77.89%
I have witnessed that prioritizing a comprehensive digital 15 54 691
Hypothesis 5 transformation business case with sustainability benefits is crucial for
securing resources and support. 1.97% 7.11% 90.92%
I can attest to the significant contribution made by implementing 60 32 668
Hypothesis 6 innovative digital technologies with robust integration, change
management strategies, and stakeholder involvement. 7.89% 4.21% 87.89%

5.4. Study Area

The data for the study were collected between 8 January and 17 March 2023. The study
area which was selected was Saudi Arabia, where a desert climate is observed, and very hot
and dry summers can be seen. The survey was taken online with the help of Google Forms,
and the respondents who took part numbered 760, including males as well as females over
the age of 25 years.

6. Results
The study’s results are presented in this section along with statistical analyses and data
visualizations. This section also describes the results of the data analysis, interpretation,
and evaluation that were performed throughout the research process.

6.1. Descriptive Analysis

To examine respondents’ attitudes toward the acceptance of the sustainable adoption
of innovative digital technologies in DT, a simple frequency analysis was carried out. Table 3
displays the frequency conversion reply from 5 to 3—a point scale. The six assertions had
acceptance rates that were higher than 70%, showing that respondents were satisfied with
the acceptance. The sustainability outcomes item (item 2) received the most consent out
of the six items, while the competitive advantage item received the least. According to
these findings, respondents appeared to have a more positive attitude toward sustainability
outcomes that promote environmental, social, and economic sustainability. It should be
noted that the rate of approval was highest in the first two of the six statements.
The frequency and mean of acceptance are shown in Table 4 in relation to each
variable. ANOVA was used in this study to compare means across multiple groups of
variables. Chi-square tests, on the other hand, were used to investigate the interrelation of
independence between categorical variables. Table 1’s frequency reveals that the majority of
respondents (661) agreed that digital technologies are efficient in terms of their effects on the
environment, society, and economic performance (p < 0.01). Innovative digital technologies
deliver sustainability outcomes based on their effects on environmental sustainability, social
sustainability, and economic sustainability (p < 0.01). Innovative digital technologies offer
competitive advantages in terms of cost efficiency and resource optimization, improved
brand reputation and customer loyalty, access to new markets and business opportunities,
and attracting and retaining top talent (p < 0.01).
Based on their results in stakeholder engagement, resource allocation, and risk reduc-
tion, innovative digital technologies enhance management and governance (p < 0.01). In
terms of their effects on stakeholder support, human resources, organizational leadership
and sponsorship, and financial resources, the sustainable adoption of innovative digital
technologies enhances resources and support (p < 0.01). The sustainable adoption of inno-
vative digital technologies in DT promotes sustainability goals based on social inclusion
and equity and the ethical and responsible use of technology (p < 0.05). The ANOVA
test determined a statistically significant impact on sustainability outcomes, whereas the
Chi-square test determined if there is a significant association between these variables.
Sustainability 2023, 15, 14697 14 of 20

According to the ANOVA test, the study found a significant difference among the groups
being compared. Similarly, Chi-square tests were accomplished to examine the correlation
among the categorical variables, like sustainability outcomes, cost, and business oppor-
tunities. In addition to this, the interpretation of results considered the significance level
using a p-value to evaluate the practical significance of the findings. As a result, the sig-
nificant ANOVA and Chi-square test results of these variables suggests that these factors
significantly contribute to achieving sustainability goals, supporting the hypotheses. From
the frequency of the respondents’ agreement on the factors and their variables, the study
demonstrates that the proposed six hypotheses are supported by the study results.

Table 4. Frequency and mean.

Frequency
Factors Classified ANOVA Chi-Square
Disagree Neutral Agree
Environmental Performance
Efficiency Social Performance 22 77 661 62.679 ** 29.079
Economic Performance
Environmental Sustainability
Sustainability Social Sustainability 45 85 630 40.085 ** 45.283
outcomes
Economic Sustainability
Cost Efficiency and Resource Optimization
Enhanced Brand Reputation and
Competitive Customer Loyalty
advantage 30 92 638 62.502 ** 43.661
Access to New Markets and
Business Opportunities
Attraction and Retention of Top Talent
Stakeholder Engagement
Governance and
Resource Allocation 7 161 592 38.617 ** 20.233
management
Risk Mitigation
Stakeholder Support
Human Resources
Resources and
Organizational Leadership 15 54 691 38.667 ** 10.968
support
and Sponsorship
Financial Resources

Sustainability Social Inclusivity and Equity

60 32 668 46.399 * 16.731
goals Ethical and Responsible Use of Technology
Note: p-value < 0.05 *, p-value < 0.01 **.

6.2. Correlation Analysis

To identify whether there was a statistically significant relationship between the
variables, a correlation analysis was performed. The variables governance and management
and sustainability goals exhibit the strongest linear correlation (the highest coefficient
value is 0.987). Between the variables of governance and management and sustainability
outcomes, there is the least amount of linear correlation (the lowest coefficient value is
0.719), see Table 5.
Efficiency showed a significantly high positive correlation with competitive advantage
(r = 0.914, p < 0.01). Sustainability outcomes were highly correlated with sustainability goals
(r = 0.979, p < 0.01). Competitive advantage showed a high correlation with governance and
management (r = 0.893, p < 0.01). Also, there was a distinct correlation between governance
and management with sustainability goals (r = 0.987, p < 0.01) and positive correlations
Sustainability 2023, 15, 14697 15 of 20

between resources and support and sustainability goals (r = 0.982, p < 0.01). All values of
Pearson’s correlation coefficient are statistically significant, according to the correlation
analysis findings.

Table 5. Simple Pearson correlation.

1 2 3 4 5 6
Efficiency 1
Sustainability outcomes 0.755 ** 1
Competitive advantage 0.914 ** 0.736 ** 1
Governance and management 0.848 * 0.719 ** 0.893 ** 1
Resources and support 0.756 ** 0.867 * 0.933 * 0.923 ** 1
Sustainability goals 0.889 ** 0.979 ** 0.75 ** 0.987 ** 0.982 * 1
Note: p-value < 0.05 *, p-value < 0.01 **.

The data were collected in an online mode with the help of Google Forms; the data were
collected from 760 respondents. The sample questionnaire was collected and is mentioned
in Appendix A. Similar to that, there were 50 questions asked, but we cannot show all
50 questions in the paper as the data become huge. As the study contains 760 respondents,
the results will vary, and it will be a large number. The statements that are considered
as hypotheses in Table 3 consist of the majority of the commonly stated responses to the
questions asked. In Table 4, the factors regarding the questionnaire are explained with an
ANOVA, which helps in analyzing variances across the means, and Chi-square, which is
used to compare the results with the expected results.

7. Discussion
Digital transformation involves the collection and processing of vast amounts of data.
Companies must prioritize data privacy and security to build trust with their customers
and stakeholders [14]. The sustainable adoption of innovative digital technologies in DT
means considering environmental, social, and ethical impacts throughout the entire life
cycle of technology implementation. By prioritizing sustainability and responsible prac-
tices, companies can achieve long-term success while minimizing negative impacts on
the environment and society [15]. The purpose of the current study is to examine the
significance of the long-term adoption of innovative digital technologies in DT. Data were
collected through an online questionnaire survey from 760 people over 25 years of age in
Saudi Arabia who were sustainability practitioners, IT professionals, professionals, ICT
users, and stakeholders. Based on the study results, the effectiveness of the transformation,
as indicated by environmental, social, and economic performance indicators, is positively
influenced by the integration of DT and sustainability principles. DT enables improved
transparency and accountability, allows organizations to actively engage with stakeholders,
and addresses social issues such as diversity, inclusion, and ethical practices. The research
results show that the goals for digital transformation should be in line with the SDGs to
improve organizations’ long-term sustainability. SDGs can improve a company’s reputation
and brand value, as they demonstrate a commitment to social and environmental responsi-
bility. According to this study’s findings, digital innovations that emphasize sustainability
give businesses a competitive edge. Technology has grown exponentially into a critical
component of the global economy and a sustainable competitive advantage. The study
results demonstrate effective governance improves stakeholder engagement, resource al-
location, and risk mitigation for successful implementation and results, which benefits
sustainable adoption in DT projects. Project managers can create a common understanding
of project goals, recognize and reduce potential risks, allocate resources effectively, and
win the support of all pertinent parties by successfully engaging stakeholders. The study
results indicate prioritizing a thorough DT business case as a top priority will increase
resources and support for a successful implementation that includes sustainability benefits
and multidimensional returns. As sustainability becomes a growing concern for businesses
Sustainability 2023, 15, 14697 16 of 20

and society as a whole, organizations are recognizing the need to prioritize sustainable
practices [16]. Based on the study results, in order to achieve sustainability objectives in
DT initiatives, innovative digital technologies must be implemented along with strong
integration, change management strategies, and stakeholder involvement. By developing
these technologies, companies can improve resource use, reduce waste, and improve overall
efficiency, thus contributing to sustainability objectives.

7.1. Practical Implications

This study’s findings can help participants and practitioners understand the value of
the sustainable adoption of innovative digital technologies in the process of DT because it
will have a lasting impact on their psychological well-being and daily lives. As a result, it is
imperative to include sustainable adoption in digital technology development. In addition
to this, the results show that the combination of DT and sustainability principles positively
influences the efficiency of the transformation, which can be measured by environmental,
social, and economic performance indicators. DT has become more efficient and effective
thanks to technology; artificial intelligence (AI) and machine learning can hasten DT. DT is
essential to business development and company expansion. People can learn about topics
they were unfamiliar with by using digital platforms.

7.2. Theoretical Implications

This work contributes to the corpus of literature. The relationship between sustain-
ability and DT at the business level has only been briefly studied in the past, particularly in
investigating the connections between financial performance, a sustainability strategy, and
a digital business strategy. This study conceptualizes the efficiency of the transformation,
long-term sustainability outcomes for organizations, competitive advantage, resources and
support for successful implementation, and sustainability goals in digital transformation
initiatives to investigate the conceptualized path. The finding of this study reveals that
sustainable adoption in DT projects benefits from effective governance by enhancing stake-
holder engagement, resource allocation, and risk mitigation for successful implementation
and outcomes.

8. Conclusions
This study examines the sustainable adoption of innovative digital technologies in
digital transformations and its implications for organizations. The data were assembled
from 760 stakeholders through a questionnaire survey, which was then analyzed using
SPSS software. The result of the analysis indicated that the combination of DT and sus-
tainability principles positively influences the efficiency of the transformation which can
be measured by environmental, social, and economic performance indicators. The study
findings demonstrated that aligning DT goals with SDGs increases long-term sustainability
outcomes for organizations. The research identified that digital technologies focusing
on sustainability gain organizations a competitive advantage. The analysis revealed that
sustainable adoption in DT projects benefits from effective governance by enhancing stake-
holder engagement, resource allocation, and risk mitigation for successful implementation
and outcomes. The research result indicated that prioritizing a comprehensive digital
transformation business case with sustainability benefits and multidimensional returns in-
creases resources and support for successful implementation. The study result revealed that
implementing innovative digital technologies with robust integration, change management
strategies, and stakeholder involvement significantly contributes to achieving sustainability
goals in DT initiatives. The study suggests the role of stakeholder engagement in driving
successful DT and the need for strategic resource allocation and risk mitigation strategies.

9. Limitations and Future Directions

In addition to this study’s contribution, some limitations can be addressed in future
research to improve outcomes. This study is primarily quantitative, which is insufficient
Sustainability 2023, 15, 14697 17 of 20

to empirically support its findings; therefore, future research could combine quantitative
and qualitative research methods for improved research outcomes. This study elaborated
on the significance of a company’s DT, but it did not address the difficulties that arise
during this process, such as a lack of an organizational change management strategy, a lack
of knowledge, and internal resistance to change. So, future studies could concentrate on
these issues.

Author Contributions: Conceptualization, S.B.K. and M.A.; Methodology, S.B.K.; Validation, S.B.K.;
Formal analysis, S.B.K.; Investigation, M.A.; Resources, M.A.; Data curation, S.B.K.; Writing—original
draft, S.B.K.; Writing—review & editing, M.A.; Project administration, M.A. All authors have read
and agreed to the published version of the manuscript.
Funding: The authors extend their appreciation to the Deputyship for Research and Innovation,
“Ministry of Education” in Saudi Arabia for funding this research (IFKSUOR3-176-2023-2).
Institutional Review Board Statement: Not applicable.
Informed Consent Statement: Not applicable.
Data Availability Statement: The data is available in the paper.
Acknowledgments: The authors extend their appreciation to the Deputyship for Research and
Innovation, Ministry of Education, Saudi Arabia, for funding this research (IFKSUOR3-176-2023-2).
Conflicts of Interest: The authors declare no conflict of interest.

Appendix A
Number Questionnaire
Digital transformation along with sustainable development goals improve
long-term sustainability outcomes.
1. Strongly agree
1 2. Agree
3. Neutral
4. Disagree
5. Strongly disagree
Organizations are gaining an advantage as digital technologies prioritize
sustainability.
1. Strongly agree
2 2. Agree
3. Neutral
4. Disagree
5. Strongly disagree
The government’s effective policies can lead to sustainable
development.
1. Strongly agree
3 2. Agree
3. Neutral
4. Disagree
5. Strongly disagree
Digital technologies improve sustainable development.
1. Strongly agree
2. Agree
4
3. Neutral
4. Disagree
5. Strongly disagree
Sustainability 2023, 15, 14697 18 of 20

Number Questionnaire
The benefits of sustainability are crucial for securing resources and support.
1. Strongly agree
2. Agree
5
3. Neutral
4. Disagree
5. Strongly disagree
To what extent do you believe that the integration of digital transformation and
sustainable development goals leads to improved long-term sustainability
outcomes?
1. Strongly agree
6
2. Agree
3. Neutral
4. Disagree
5. Strongly disagree
In your opinion, do organizations gain advantages from prioritizing
sustainability through the use of digital technologies?
1. Strongly agree
7 2. Agree
3. Neutral
4. Disagree
5. Strongly disagree
How much do you think effective government policies contribute to achieving
sustainable development?
1. Strongly agree
8 2. Agree
3. Neutral
4. Disagree
5. Strongly disagree
Please rate the extent to which digital technologies positively impact sustainable
development.
1. Strongly agree
9 2. Agree
3. Neutral
4. Disagree
5. Strongly disagree
To what degree do you believe that the benefits of sustainability are essential for
securing necessary resources and support?
1. Strongly agree
10 2. Agree
3. Neutral
4. Disagree
5. Strongly disagree

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