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

2024 | Samuel Plecko and Barbara Bradač Hojnik
This study explores the relationship between digital transformation and sustainable practices in enterprises, examining how digital technologies influence the integration of social and environmental considerations in decision-making. Using data from the Global Entrepreneurship Monitor (GEM), which includes 26,790 entrepreneurs across 47 countries, the research employs multinomial regression to assess the impact of factors such as demographic variables (gender, age, education), national income levels, and geographical regions on business sustainability. Key findings indicate that the strategic use of digital technologies in sales processes significantly increases the likelihood that entrepreneurs will incorporate social and environmental considerations into their decisions. This trend is most pronounced among entrepreneurs in Latin America and the Caribbean. The study highlights the central role of digital technologies in driving sustainable business transformation while emphasizing the significant influence of regional socio-environmental contexts on business sustainability orientations. The research also examines the impact of demographic factors and regional differences on sustainable business practices, proposing hypotheses that digitalization enhances social and environmental sustainability, and that female entrepreneurs are more likely to prioritize social sustainability, while age and education have less consistent effects. The study underscores the importance of systems thinking in understanding the complex interactions between digital technologies and sustainable business practices, and highlights the need for further research to comprehensively understand the dynamic relationship between digitization, sustainability, and business success.This study explores the relationship between digital transformation and sustainable practices in enterprises, examining how digital technologies influence the integration of social and environmental considerations in decision-making. Using data from the Global Entrepreneurship Monitor (GEM), which includes 26,790 entrepreneurs across 47 countries, the research employs multinomial regression to assess the impact of factors such as demographic variables (gender, age, education), national income levels, and geographical regions on business sustainability. Key findings indicate that the strategic use of digital technologies in sales processes significantly increases the likelihood that entrepreneurs will incorporate social and environmental considerations into their decisions. This trend is most pronounced among entrepreneurs in Latin America and the Caribbean. The study highlights the central role of digital technologies in driving sustainable business transformation while emphasizing the significant influence of regional socio-environmental contexts on business sustainability orientations. The research also examines the impact of demographic factors and regional differences on sustainable business practices, proposing hypotheses that digitalization enhances social and environmental sustainability, and that female entrepreneurs are more likely to prioritize social sustainability, while age and education have less consistent effects. The study underscores the importance of systems thinking in understanding the complex interactions between digital technologies and sustainable business practices, and highlights the need for further research to comprehensively understand the dynamic relationship between digitization, sustainability, and business success.
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Understanding Sustainable Business Practices and the Role of Digital Technologies%3A A Cross-Regional Analysis