Roh, T., Xiao, S., Park, B.I. et al. (2 more authors) (2026) Unpacking the Role of Digital Dynamic Capabilities in ESG Performance: A Social Exchange Perspective on Organizational Trust and Identification. Business Strategy and the Environment, 35 (2). pp. 1951-1969. ISSN: 0964-4733
Abstract
This study examines the role of digital dynamic capabilities (DDCs) in enhancing ESG performance, integrating insights from social exchange theory (SET). By conceptualizing organizational trust and organizational identification as key antecedents of DDCs, we propose that firms fostering trust-based and identification-driven environments are more effective in leveraging digital transformation to advance sustainability initiatives. Utilizing a two-wave survey of 257 firms, we employ structural equation modeling to test our hypotheses. Findings reveal that organizational trust and identification positively influence DDCs, with DDCs serving as a partial mediator in the relationship between organizational trust and ESG performance. Moreover, organizational identification exhibits a direct effect on ESG performance rather than operating through DDCs. These results underscore the contingent role of digital transformation in sustainability strategies, emphasizing that trust and digital readiness are essential enablers of corporate ESG outcomes. The study contributes to both SET and dynamic capability perspectives by demonstrating how relational capital, when combined with digital adaptation mechanisms, facilitates ESG success.
Metadata
| Item Type: | Article |
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| Authors/Creators: |
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| Copyright, Publisher and Additional Information: | © 2025 The Author(s). This is an open access article under the terms of the Creative Commons Attribution License (CC-BY 4.0), which permits unrestricted use, distribution and reproduction in any medium, provided the original work is properly cited. |
| Keywords: | dynamic capabilities, ESG performance, organizational identification, organizational trust, social exchange theory |
| Dates: |
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| Institution: | The University of Leeds |
| Academic Units: | The University of Leeds > Faculty of Business (Leeds) > International Business Division (LUBS) (Leeds) |
| Date Deposited: | 10 Oct 2025 10:21 |
| Last Modified: | 05 Mar 2026 10:26 |
| Status: | Published |
| Publisher: | Wiley |
| Identification Number: | 10.1002/bse.70273 |
| Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:232739 |

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