Sustainable Business Practices and the Role of Digital Technologies: A Cross-Regional Analysis

Sustainable Business Practices and the Role of Digital Technologies: A Cross-Regional Analysis

14 March 2024 | Samuel Plečko and Barbara Bradač Hojnik
This study examines the relationship between digital transformation and sustainable practices within enterprises, using a holistic systems thinking approach. It investigates how digital advances facilitate or impede sustainable development while considering the systemic impact of demographic variables (gender, age, education), national income levels, and geographical regions on business sustainability. Using data from the Global Entrepreneurship Monitor (GEM) survey of 26,790 entrepreneurs in 47 countries, the research employs multinomial regression to assess how these factors influence companies' commitment to social and environmental goals. Key findings indicate that strategic use of digital technologies in sales processes significantly increases the likelihood of entrepreneurs integrating social and environmental considerations into their decision-making, particularly among entrepreneurs in Latin America and the Caribbean. The study underscores the central role of digital technologies in driving sustainable business transformation and highlights the significant influence of regional socio-environmental contexts on business sustainability orientations. The research contributes to a deeper understanding of how businesses can thrive in a digitally transformed and environmentally conscious world, emphasizing the need for a systems thinking approach to navigate the complex interplay between digitalization and sustainability.This study examines the relationship between digital transformation and sustainable practices within enterprises, using a holistic systems thinking approach. It investigates how digital advances facilitate or impede sustainable development while considering the systemic impact of demographic variables (gender, age, education), national income levels, and geographical regions on business sustainability. Using data from the Global Entrepreneurship Monitor (GEM) survey of 26,790 entrepreneurs in 47 countries, the research employs multinomial regression to assess how these factors influence companies' commitment to social and environmental goals. Key findings indicate that strategic use of digital technologies in sales processes significantly increases the likelihood of entrepreneurs integrating social and environmental considerations into their decision-making, particularly among entrepreneurs in Latin America and the Caribbean. The study underscores the central role of digital technologies in driving sustainable business transformation and highlights the significant influence of regional socio-environmental contexts on business sustainability orientations. The research contributes to a deeper understanding of how businesses can thrive in a digitally transformed and environmentally conscious world, emphasizing the need for a systems thinking approach to navigate the complex interplay between digitalization and sustainability.
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