Technological Opportunism Capability and Corporate ESG Performance: The Role of Digital Technologies, Circular Supply Chain Capability and Organizational Agility

Abstract

This study inspects the role of the technological and organizational orientation of a company to assist companies to embrace new digital technologies, enhance their virtual supply chain, and achieve higher environmental, social, and governance (ESG) performance. The study is centered on the business textile manufacturing division of Pakistan where digital transformation and sustainability are becoming a significant concern. The article is based on Technology Organization Environment (TOE) model and Dynamic Capability Theory that describe the way firms feel, adapt and utilize new technologies. Data were collected from 424 managers working in corporate textile manufacturing firms through a structured questionnaire. The analysis was conducted using SmartPLS 3.0, a widely used and reliable tool for structural equation modeling. The outcomes confirm that there is a strong technological and organizational context significantly promotes the adoption of digital technologies. These emerging digital technologies, in turn, better the circular supply chain capabilities of organization, which lead to better ESG performance. The results also emphasize the key role of organizational agility. Agile corporations are more competent to use emerging digital technologies smoothly, strengthen the circular supply chain practices, and eventually get the higher ESG performance.