Abstract
Digital technology has drastically transformed businesses’ activities, operations, and processes. Today, digital efficiencies have inspired companies to take initiatives to leverage the firm’s environmental performance. The study’s primary purpose was to examine how a digital transformation strategy affects environmental performance under the mediating role of innovation capabilities and moderating role of digital organizational culture. The data was obtained from manufacturing industry employees in Pakistan. The results reveal that digital transformation strategy (DTS) positively and significantly affects innovation capabilities and environmental performance. The link between digital transformation and environmental performance is mediated by innovation capabilities, while digital organizational culture moderates the relationship between innovation capabilities and environmental performance.
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