Digitalization, sustainable development, and the role of company size: evidence from Germany, Austria, and Switzerland

Abstract

The concept of digitainability considers digitalization to be a key driver for sustainability. The objective of this study is to examine the influence of digitalization on the sustainable development of large corporations by employing a mixed-methods approach. Building on a comprehensive literature review, we develop a regression model to assess the impact of a company's level of digitalization on its environmental and sustainability performance, the latter being proxied by ESG scores from Refinitiv. The model was applied to a sample of 74 large stock corporations in Germany, Austria, and Switzerland between 2014 and 2021. Our results reveal a statistically significant relationship; however, it is fully mediated by company size. To deepen insights, we additionally conducted semi-structured interviews with digitalization and sustainability experts. Based on our findings, we propose a framework for a successful implementation of digitainability in practice