Title Digital technologies and environmental performance: a curvilinear effects estimation /
Translation of Title Skaitmeninės technologijos ir poveikis aplinkai: netiesiškų efektų vertinimas.
Authors Bostelmann, Lena
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Pages 69
Keywords [eng] digital technologies ; environmental performance ; digital transformation
Abstract [eng] With the climate crisis rapidly progressing, industries are faced with the challenge of minimizing their environmental footprint. One proven way for achieving this imperative is through the adept adoption of digital transformation (DT). However, while certain studies assert a strictly positive correlation between DT and companies' environmental performance (EP), a body of evidence suggests a more complex, non-linear relationship. This discrepancy between the two research streams leads to a research gap, requiring further exploration on the influencing factors of the relationship. Since DT is mainly built on digital technologies it appears necessary to examine the correlation between the use of these technologies and EP. Positioned within the resource-based view framework, which recognizes both digital technologies and EP as strategic resources for competitive advantage, this study contributes to the field of DT and its impact on EP. Thus, the research aim is to investigate the complex relationship between digital technologies and environmental performance within manufacturing companies, specifically investigating the hypothesis of a curvilinear association. The research objectives encompass: 1. To investigate the concepts of DT, digital technologies and EP 2. To review arguments and evidence for both a linear and non-linear relationship between DT and EP 3. To define a research model to analyze the effect of digital technologies on EP 4. To present the results of the effect of digital technologies on EP and propose theoretical and managerial implications of said results based on the resource-based view (RBV). The underlying research method required conducting a literatur review to find evidence for both a linear positive and a curvilinear relationship to find similarities and differences in the argumentation. By leveraging secondary data from a 2022 survey, a regression analysis was conducted to examine the potentially curvilinear relationship between a selection of digital technologies and EP. The ten queried digital technologies were categorized into five groups based on the 5C architecture of CyberPhysical Systems (CPS). The empirical findings revealed a significant positive linear relationship between three technology categories, namely smart-connection, cyber and configuration, and EP. The strength of the relationships were equally weak, suggesting that the integration of these digital technologies improve the EP only slightly and there is little difference in which technologies are used. These results 4 contradict the expected inverted U-shape relationship, indicating a linear improvement in EP as digital technologies become more integrated into manufacturing processes. The analysis also revealed a significant relationship between company size, which was used as a control variable, and EP. As a final result, this research underscores the strategic importance of DT in enhancing environmental sustainability within the manufacturing context. From a RBV perspective it is advisable for manufacturing companies to implement new and further develop existing digital technology applications, to improve their competitive advantage. This is restricted to technologies from the categories smart-connection, cyber and configuration. However, research suggests that digital technologies have their main environmental impact outside of the operative using stage in their production and end-of-life disposal. Therefore it is possible, that EP of companies that use these technologies does not reflect this impact accordingly. This research also emphasizes the need for further qualitative investigation into how digital technologies can be utilized in a targeted approach to improve EP. By outlining how the use of digital technologies already improves EP and enhances the competitive edge of manufacturing enterprises, this study contributes theoretically to the existing body of literature while adding to the global empirical evidence base, particularly through the evaluation of data from Lithuania.
Dissertation Institution Kauno technologijos universitetas.
Type Master thesis
Language English
Publication date 2024