Sustainable Competitive Advantage Research Articles

Influence of Emotional Marketing in the Field of Cosmetics Among Females Towards Brand Loyalty and Preference

Emotional marketing in the cosmetics industry has gained significant traction as brands strive to connect with female consumers on a personal level. Recognizing that cosmetics are more than just products, brands increasingly foAcus on evoking emotions and building connections that resonate with consumers’ identities, values, and aspirations. By tapping into emotional drivers such as self-confidence, empowerment, and individual expression, cosmetics brands leverage storytelling, personalization, and value-driven messages to create bonds that transcend the traditional product experience. These strategies, by going beyond functional benefits, forge meaningful relationships that positively influence both brand loyalty and consumer preference. As brands grow in their understanding of consumer psychology1 , emotional marketing strategies have evolved from mere trend-following to becoming an integral part of brand identity and differentiation. In a highly competitive cosmetics market, emotional engagement becomes a key asset, distinguishing brands that merely offer quality products from those that offer experiences rooted in emotional satisfaction and alignment with personal values. For instance, storytelling allows brands to narrate their journey and core values—whether through ethical sourcing, sustainability efforts, or diversity and inclusion initiatives—which resonates deeply with consumers2 who prioritize similar values. Similarly, personalization caters to individual preferences, allowing consumers to feel seen and valued, thereby strengthening loyalty and increasing purchase intentions. This study employs a mixed-method approach, combining quantitative data from extensive surveys and qualitative insights from indepth interviews. This dual approach captures not only the broad trends in consumer responses but also the nuanced ways in which emotional marketing influences individual purchasing decisions. The quantitative analysis provides statistical insights into the correlation between emotional marketing and brand loyalty, while qualitative interviews shed light on personal consumer experiences and emotional connections with specific brands. Together, these methods form a holistic view of emotional marketing’s impact, particularly its role in shaping purchasing behaviors and brand preferences among female consumers in the cosmetics industry. Findings from this study reveal that emotional marketing significantly shapes purchasing decisions by enhancing consumer perceptions of brand authenticity, trustworthiness, and alignment with personal values. Female consumers, in particular, are drawn to brands that promote messages of self-love, empowerment, and ethical responsibility. The emotional connection fostered through such marketing initiatives translates to higher brand loyalty and preference, as consumers are more likely to remain loyal to brands that reflect their values and resonate with their self-image. Furthermore, these findings highlight the effectiveness of emotional marketing strategies, providing cosmetics brands with actionable insights into building consumer loyalty and strategically positioning themselves within a saturated market. This approach, focused on aligning with consumer emotions3 and values, offers a sustainable competitive advantage that promotes brand loyalty and encourages positive consumerbrand relationships.

Suggestions for Integrated BSC-DEA Implementation in the Industry 4.0 Company

Purpose: The implementation of the integrated BSC-DEA model in an Industry 4.0 company involves leveraging advanced technologies to enhance its performance measurement. This approach enables real-time monitoring of KPIs, optimising operational efficiency while ensuring continuous improvement in a rapidly evolving digital environment. By integrating BSC-DEA with Industry 4.0 principles, companies can achieve a more agile and data-driven decision-making process, securing a sustainable competitive advantage. Methodology/Approach: The integration uses BSC to identify KPIs, which are then applied in the DEA model. This allows an Industry 4.0 company to benchmark performance and optimise resource use through targeted improvements. Findings: This research overview presents a structured approach to understanding the proposal for applying the integrated BSC-DEA model in an Industry 4.0 company. Continuous feedback, data validation, and periodic reviews ensure that the model facilitates sustainable performance improvement. Research Limitation/implication: The proposed implementation process requires a substantial commitment of time and resources, along with support from all levels of the Industry 4.0 company. Originality/Value of paper: The research presented in this paper introduces novel concepts, methodologies, and findings that advance the current state of knowledge. The originality of this work is demonstrated through innovative approaches to existing problems, as well as the analysis and synthesis of diverse ideas to develop new theoretical processes, models, and practical implications.

Innovation and Tqm Performance of Selected Automobile Parts Manufacturing Industry in Guangdong China: Inputs for A Strategic Roadmap for Continuous Improvement

The automotive industry is in the wave of technological change, and the rise of new energy vehicles requires continuous innovation of traditional automotive parts. TQM practice affects innovation, and in order to improve innovation, it is necessary to correctly identify the areas that perform well or need improvement. One way to identify these areas is through surveys of satisfaction with TQM practice and innovation. Few studies analysis TQM impact on innovation focus on automotive parts manufacturing industry. This study takes automotive parts manufacturing industry of Guangdong Province as the research object, explores the relationship between TQM practice and innovation, and fills the gaps in the literature mentioned above. By analyzing TQM practice's extend and innovation's level, explore the influence of different elements TQM practice on each dimension of innovation, and study the significance of TQM practice on each dimension of innovation. Finally, according to the research results, continuous improvement strategic roadmap of automotive parts manufacturing industry is put forward. The roadmap enables company to improve operational performance, enhance product quality, and build a sustainable competitive advantage in the global automotive supply chain. The quantitative data were collected from 342 respondents who participated in the survey of automotive parts manufacturing managers in Guangdong Province. The quantitative data were analyzed by mean value, variance and regression analysis, supplemented by SPSS 26.0 software. The quantitative results show that there is a complex relationship between TQM practice and innovation in automotive parts manufacturing industry. The conclusion and influence are discussed.

THE INFLUENCE OF AMBIDEXTROUS LEADERSHIP AND AMBIDEXTROUS LEARNING ON TEAM INNOVATIVE PERFORMANCE

As enterprises and other types of organizations face complex and changing internal and external environments, it is increasingly difficult for a single leadership behavior to maintain sustainable competitive advantage. Enterprises and scholars have studied the characteristics of "both/and management thinking" extensively. This paper employs a questionnaire survey method, dividing it into two stages: the pre-survey and the formal survey, to collect questionnaires from high-tech industry-intensive areas like Shanghai, Jiangsu Province, and Anhui Province. We empirically test the research hypotheses using the regression analysis method, yielding the following research findings: (1) Ambidextrous leadership has a positive impact on team innovation performance; (2) Ambidextrous leadership has a significant positive impact on Ambidextrous learning; (3) Ambidextrous learning has a significant positive impact on team innovation performance; (4) Ambidextrous leadership directly affects team innovation performance mainly through the mediating role of Ambidextrous learning; (5) Team commitment plays a positive moderating role in the relationship between Ambidextrous leadership and team innovation performance, that is, the higher the team commitment, the stronger the positive impact of Ambidextrous leadership on team innovation performance, and vice versa. (6) Team commitment plays a positive moderating role in the relationship between Ambidextrous leadership and Ambidextrous learning; that is, the higher the ability, the stronger the positive impact of Ambidextrous leadership on Ambidextrous learning, and vice versa. (7) Knowledge reorganization ability plays a positive moderating role in the relationship between Ambidextrous learning and team innovation performance; that is, the higher the knowledge reorganization ability, the stronger the positive impact of Ambidextrous learning on team innovation, and vice versa.

Initial Person-Environment Fit Practices and Academic Staff Engagement in Private Universities in Uganda

Employee engagement is an important element for the sustained competitive advantage of organisations. Therefore, it is important to examine practices likely to enhance it among employees. This article examined the relationship between initial person-environment fit practices and academic staff engagement in private universities in Western Uganda. Particularly, the study examined whether the initial person-environment fit practices, namely recruitment, selection and socialisation, were significantly related to the employee engagement of teaching staff. The study was correlational, involving a sample of 222 academic staff from three private universities. Data was analysed using partial least squares structural equation modelling (PLS-SEM). The results indicated that the model was appropriate, for the constructs were fit for structural modelling. Hypothesis test results revealed that recruitment, selection and socialization were significantly related to employee engagement among teaching staff. It was concluded that the implementation of an appropriate recruitment and selection process, as well as the proper socialisation of new academic staff, promotes their work engagement in terms of absorption, dedication and vigour. Therefore, it was recommended that appointment boards and human resource directorates in universities implement appropriate recruitment and effective selection practices that promote academic staff engagement. Further, human resource directorates, deans of faculties and heads of departments should make an effort to socialise new teaching staff to promote work engagement among teaching staff.

The power of local culture in regional tourism capital development

The successful development of tourist destinations plays a crucial role in fostering local economic growth. However, regions often replicate tourism models without accounting for their unique geography, culture, demography, and socio-economic characteristics, leading to ineffective and costly outcomes. This research aims to highlight the significance of local cultural strengths in creating sustainable tourism strategies tailored to specific regional contexts. The study employs a literature review and observational approach, coupled with surveys distributed to tourists, business operators, and travel agencies. Both quantitative and qualitative analyses were utilized to identify trends, behaviors, and perceptions related to tourism development. The findings reveal that local culture, as an intrinsic social capital, holds significant potential to attract visitors by offering authentic and unique experiences. Cultural elements such as traditions, arts, culinary heritage, and social practices create strong narratives that differentiate destinations and enhance tourist satisfaction. Moreover, understanding local psychographic and demographic factors is pivotal in positioning tourism products effectively. The research concludes that leveraging local culture not only preserves regional identity but also stimulates entrepreneurship and economic prosperity. Tourism strategies that integrate cultural heritage with innovative marketing approaches have the potential to create sustainable competitive advantages, encouraging repeat visits and fostering community involvement. This study underscores the importance of aligning tourism development with local cultural values to achieve harmonious growth, benefiting both tourists and host communities.

Unravelling firm performance in evolving markets: a capabilities approach to China's automotive sector

ABSTRACT This study investigates how operational and dynamic capabilities have influenced the adaptation and performance of Chinese automakers in response to industry shifts toward electrification and intelligentisation from the mid-2010s onward. Focusing on XPeng Motors, Jeep China, and BYD, the research examines how varying operational capabilities levels, categorised as baseline, standard, and VRIN (Valuable, Rare, Inimitable, Non-substitutable) resources, interact with dynamic capabilities to shape strategic responses in a rapidly evolving market. Using a mixed-methods approach that includes secondary data analysis, participatory observation, and expert interviews, this study highlights the significance of aligning operational and dynamic capabilities to achieve sustained competitive advantages. Findings reveal that robust operational capabilities amplify the effectiveness of dynamic capabilities, allowing firms like BYD to adapt and thrive in volatile environments, while firms with weaker foundations, like XPeng, struggle to scale and sustain. The research contributes to strategic management literature by clarifying resource-capability alignment and offering insights for firms navigating disruptive industry changes.

The importance of product innovation in maintaining a competitive advantage

Product innovation is crucial in creating and sustaining a competitive advantage for companies. Companies can differentiate themselves from competitors by constantly improving, introducing new products, and appealing to customers. The success of product innovation depends not only on how new the product is but also on its quality and Price. Therefore, the relationship between product innovation, Price, and quality is vital for creating and maintaining a competitive advantage. This study analyzes the relationship between product innovation and (price, quality) with a sustainable competitive advantage, the data shows that there is an effective and positive relationship between product innovation and price, quality. Additionally, we collected data through forum questionnaires and analyzed it using the multiple regression method, and We used SPSS version 25 for assistance in data analysis. So, the study can analyze the influence of the independent variables (product innovation) on the dependent variable (sustained competitive advantage). After analyzing the data, it was found that process innovation, product innovation, Price and quality positively impact sustained competitive advantage. The results also indicate that these three independent variables significantly affect the dependent variable.

Механізм стратегічного управління конкурентним розвитком aгрaрних пiдприємcтв

The article defines the potential of competitiveness as the totality of the enterprise’s capabilities to create sustainable competitive advantages. The direct competitiveness of products and the enterprise is recognized as the result of implementing these advantages in production, commercial, and sales activities. The theoretical and methodological basis of the research in the article is formed by modern concepts of management theory and competition and the scientific work of domestic and foreign scientists on theoretical and practical principles of forming strategies for competitive advantage in the agricultural sector of the economy. The structure of the involved elements and tools of the strategic management system is established taking into account the dual nature of the management object, which is defined as the process of realizing the potential of competitive advantage through the implementation of the connection between the implementation of innovative solutions and the creation of competitive advantages, the nature of which is determined by the potential of the enterprise and the situation in the target markets. The theoretical and applied principles of constructing a synthesized organizational and economic mechanism for managing the potential of competitiveness on an innovation and investment basis are substantiated. The specified concept provides for the construction of an appropriate management mechanism. It also recognizes the priority of the enterprise’s investment activity as a source of resources to maintain the stability of its development. In forming the specified mechanism of enterprise development management, the results of the decomposition and further synthesis of development and management mechanisms are laid down. At the same time, the development management mechanism provides for the production and implementation of enterprise investment strategies depending on the enterprise’s economic potential, mission, and goals of the activity, as well as the scale of production, size, and specialization. Competition forces entrepreneurs to mobilize all available and potential resources to develop and implement strategies for effective behavior in the market. To take into account and compare all aspects and factors influencing an enterprise’s competitiveness level, it is necessary to formulate a concept of a modern approach to defining and managing competition. Keywords: competitiveness, enterprise potential, strategy, competitive advantages, management mechanism, innovation, economic efficiency.

Розвиток конкурентних переваг аграрного підприємства: сучасні виклики та питання цифровізації

The development of competitive advantages results from achieving high results in agribusiness, which is a reference point for overcoming crises, such as military actions and global environmental challenges. It was found that modern economic processes in the agrarian sector of the Ukrainian economy are highly complicated due to the intersection of interests of many participants in constructing the export policy and the complex security conditions for its implementation. The main directions for creating competitive advantages for agrarian enterprises in the conditions of post-war recovery are substantiated, and the following are highlighted: modernization and technological progress; product diversification; development of cooperation and agrarian associations; development of human capital; sustainable management of resources; technologization of management and digitization of agribusiness. Their features, advantages, and disadvantages, which are used in practice to form and implement competitive strategies, are studied. It has been proven that the potential of digitization of the business environment in Ukraine is based on opportunities obtained from access to virtual space. It is characterized by increased sales, increased productivity and education of employees, reduction of certain items of cost, and increased business competitiveness. Based on the research results, the competitiveness of an agricultural enterprise in the digital space can also be characterized by its certain potential quality, which includes relevant digital skills. Implementing these qualities can create real advantages for the enterprise over competitors in the form of an increase in its market value, building additional resistance to the adverse effects of the external environment, including attacks by competitors. The considered problematic aspects and prospects of digitalization of agribusiness demonstrate the importance and potential of managing the development of enterprises in this field based on the concept of sustainable competitive advantages considering the post-war recovery of Ukraine’s economy. Keywords: development of competitive advantages, competitive strategy, agricultural enterprise, marketing tools, business digitalization, innovation.

The Role of Resource Consumption Accounting in Achieving Competitive Advantage Applied Research: General Company for Textile and Leather Industry

The objective of this research is to explore resource consumption accounting within the economic unitunder study. Additionally, the research aims to analyze competitive advantage as a process ofuniqueness for an organization or a specific superiority when compared to its competitors. Based onthis, the researcher posits that sustainable competitive advantage refers to the organization's objectiveability to adapt to changes in the market environment and to thoroughly examine the industryenvironment. The research problem stems from the fact that many companies in today's world strive for leadershipand excellence in production through the recognition of the importance of modern systems, particularlyresource consumption accounting, in achieving competitive advantage. However, the challenges andexternal factors that accompany production processes may hinder this achievement. The studyinvestigates whether resource consumption accounting has an impact on competitive advantage. The research is based on the hypothesis that there is a significant correlation between resourceconsumption accounting and sustainable competitive advantage. The importance of the research lies inhighlighting the role of resource consumption accounting in achieving sustainable competitiveadvantage, and in assessing the impact of resource consumption accounting on the realization of suchan advantage.

THE MANAGEMENT MECHANISM OF INNOVATIVE COMMUNITIES DEVELOPMENT IN THE CONDITIONS OF POST-WAR RECONSTRUCTION OF THE TERRITORY

The formation and effective management of innovative communities within the territories of Ukraine is a necessary condition for their post-war recovery.. The analysis of the activities of the leaders of innovative development shows that they are involved in the innovation process with almost all structures that act in a coordinated manner. Thus, the formation of the foundations of the organizational and economic management mechanism for the development of innovative communities in the current operating conditions is relevant. The purpose of the article is the formation of a complete set of tasks for managing the development of innovative communities in the direction of sustainable post-war recovery. Approaches to the separation of the function in terms of management of innovative activity and the formation of the corresponding mechanism are considered. According to the results of the analysis of the existing developments in the field of separation of functions for the implementation of various organizational and economic mechanisms, as well as based on the essence and content of the management of innovative development, the main functions of the organizational and economic mechanism of managing the development of innovative communities are highlighted. They are presented in blocks: functions of analysis of external conditions; functions of analyzing the internal environment of the community; the functions of producing (receiving) and using knowledge for the formation of competitive advantages of innovative communities to ensure their development; functions of managing the selection and implementation of directions and strategies of innovative development. In order to form a more reasonable list of principles within the framework of the mechanism, existing approaches to distinguishing management principles inherent in innovative development are considered. Therefore, the principles of the higher echelon include those that are basic for the implementation of innovative sustainable development. Medium-level principles include those inherent to any innovative and active entity that wants long-term development. The principles of the lower level include basic principles. It was determined that the mechanism's management object is the development strategies of innovative communities, and these strategies are the subject of management. The main subsystems of the mechanism include the subsystem of providing information and knowledge, analyzing the state of the components of the innovative development potential, and managing innovative development strategies. In general, the organizational and economic mechanism of managing the development of innovative communities is considered as a system of interconnected and mutually coordinated economic and organizational methods, levers, forms and management tools for the development and implementation of strategies for the innovative development of communities, which are oriented towards a "technological breakthrough" and bringing to the market "subversive » innovative products, formation of sustainable competitive advantages on this basis and ensuring high competitiveness of the community on national and foreign markets.

Financial Strength of Agribusiness to Accelerate Responsible Investment for Sustainable Development

Objectives: Agribusiness plays a vital role in providing food security and food energy with contribution towards social and economic stability. The sustainable development goals of industry, innovation and infrastructure to build volatile innovative sustainable industries by ensuring responsible production. Responsible investment by enterprises for incorporating ESG environmental, social and governance (ESG) compliances for achieving sustainable development is contingent on financial sustainability. Methods: The study focuses on the financial strength of agribusiness to measure efficiency in building responsible investment practises for sustainable development. Result: The agribusiness companies listed in Indian recognised Stock exchange is analyzed for measuring key performance indicators of profitability, liquidity, efficiency and leverage from the period of its listing year to March 2020. Conclusion: The dramatic changes in business environment and trends influences agribusiness enterprises to adopt responsible investment for achieving invaluable sustainable competitive advantage.

External IT Use for Capturing Competitive Advantage in Marine Industry: RBV Approach

The marine industry has significant potential for development. Various strategies enhance this potential, including optimizing organizational capabilities, strengthening resources, and adopting external IT. This research explores the relationship between external IT and creating competitive advantage through a resource-based approach. This research employs a descriptive quantitative approach, utilizing online surveys with 300 respondents from the fisheries and marine tourism sectors. Data analysis was conducted using Structural Equation Modeling (SEM) with the help of SMART PLS software. This study's results indicate that external IT impacts a company's capabilities, that is, technology and operational capabilities, and influences competitive advantage. Technological and operational capabilities measure company capability in this research. However, a unique finding of this study is that operational and strategic capabilities did not contribute to creating a competitive advantage. This research explores the relationship between factors contributing to competitive advantage and the support for external IT within the marine industry sector. Since the external environment of the marine industry is predictable, leveraging external IT resources can enhance the sustainability of competitive advantages.

Effectiveness of Innovation for Organizational Excellence in the Information Technology Sector

Introduction: Digital transformation era calls for effective leadership competencies in the information technology sector. The need, significance, purpose and scope of the study will reiterate the Statement of the problem and research statement - that there is no coherent link in most studies between effectiveness of innovation as a leadership competency and organizational excellence, since there is still a scarcity of research, based on the Review of Literature. This study assesses the significant relationship between effectiveness of innovation as a leadership competency and organizational excellence drivers like employee value proposition, competitive advantage, organizational agility and organizational culture. Team Leaders, project leaders, project managers and senior leaders of select IT Companies in Chennai city were the universe of the study. Objectives: (i) Examine the effectiveness of innovation as a leadership competency on drivers of organizational excellence namely - employee value proposition, competitive advantage, organizational agility and organizational culture. (ii) Examine differences in the impact of demographic factors like gender, age, educational qualification, total years of experience, and years of experience in current company, on innovation, as a leadership competency. (iii) Examine differences in the impact of demographic factors like gender, age, educational qualification, total years of experience, and years of experience in current company, on drivers of organizational excellence namely - employee value proposition, competitive advantage, organizational agility and organizational culture. Methods: For this study, quantitative research design and approach, structured questionnaire as research tool, simple random sampling method, and standard data analysis process for interpretation of the collected data has been used. Results: The rise in knowledge work, beckons leadership for an innovation mindset, risk-taking, change management for work, workforce and workplace. Human capital development for innovation, improves product, service, process, technological and business model innovation for growth. Enhanced employee value proposition, nimble-organizational agility and an enticing organizational culture creates sustained competitive advantage. Conclusion: It was found that effectiveness of innovation as a leadership competency, impacts the drivers of organizational excellence and paves way for long-term strategic success, to build a thriving workforce that in turn helps to build successful business organizations with sustainable competitive advantage.

Development of Management Information System to Improve Sustainable Competitive Advantage of Nurul Barqi Sejahtera Cooperative

This community service activity aims to provide cooperative management training to improve the understanding and skills of administrators and supervisors in providing services to members. The location of this community service is at the Nurul Barqi Sejahtera Service Cooperative, Semarang, Central Java Province, with a target of 14 participants consisting of administrators and supervisors. The solution approach is carried out through the workshop method, which includes steps such as initial problem identification, follow-up FGD on institutional management development, development of an integrated cooperative management information system, implementation of an integrated SIM operation workshop, and program evaluation using interview instruments, with source triangulation analysis techniques, and follow-up. The results of this service are that the development of teacher professionalism in managing school cooperatives has been successfully carried out, starting from the problem identification stage and workshops to program evaluations. The results of this service can also increase cooperatives' competitiveness in a sustainable manner. Challenges faced, such as limited understanding of teachers regarding cooperative development, have been successfully overcome through intensive training and ongoing mentoring.

The impact of dynamic marketing capabilities (DMCs) and strategic information management (SIM) on international start-up success: A meta narrative analysis

The success of international startups is profoundly influenced by their adeptness in utilizing dynamic marketing capabilities (DMCs) and strategic information management (SIM) to achieve competitive advantage and sustainable growth in global markets. This research examines the effects of these crucial elements on the success of international startups through a meta-narrative analysis. By synthesizing findings from 20 articles published in Scopus-indexed journals between 2020 and 2024, we aim to provide an in-depth understanding of the interaction between DMCs and SIM and their impact on startup performance in global markets. The research design includes an extensive review and synthesis of the literature on DMCs and SIM, emphasizing their importance in improving startup agility, market responsiveness, and strategic decision-making. Our findings suggest that startups are proficient in DMCs, such as adaptive market orientation and innovative marketing strategies, alongside robust information management systems, demonstrating higher success rates, accelerated growth, and a sustained competitive advantage in international markets. These insights highlight the pivotal role of integrating marketing dynamism with SIM for startup success. The global implications of this study suggest that international startups must prioritize the development of these capabilities to navigate the complexities of global markets effectively and ensure long-term viability. This research underscores the critical importance of strategic investments in marketing and information management to foster startup success globally.

Analyze The Marketing Mix Strategy In Enhancing The Competitiveness Of Bank Permata Community Channel Division

This study aims to analyze the marketing mix strategy in enhancing the competitiveness of Bank Permata's Community Channel Division. The marketing mix strategy, consisting of product, price, place, promotion, people, process, and physical evidence (7P), is applied to understand how each element contributes to the bank's competitive advantage. The research method used is qualitative with a case study approach, involving in-depth interviews with managers and staff of the Community Channel Division, as well as analysis of internal bank documents and reports. The results of the study indicate that the effective implementation of the marketing mix strategy can enhance customer satisfaction, loyalty, and brand image, ultimately improving Bank Permata's competitiveness. These findings provide practical recommendations for Bank Permata's management to continuously optimize their marketing strategies to achieve sustainable competitive advantage.

The role of systematic training and advanced training of specialists in the formation of sustainable profits and competitive advantages of manufacturing companies

The role of systematic training and advanced training of specialists in the formation of sustainable profits and competitive advantages of manufacturing companies

Research on the Impact of Digital Transformation on Enterprise ESG Performance: Based On the Perspective of Enterprise Dynamic Capability

At a time when more attentions are paid to green environmental protection at home and abroad, enterprises need more driving forces to do ESG practices. Digital transformation with the help of digital technology, this new quality productivity provides enterprises with a new way of thinking and power to enhance ESG performance. Explore whether digital transformation can enable ESG performance of enterprises, so as to provide certain practical significance for enterprises to firmly carry out digital transformation, improve ESG performance of enterprises, and obtain new sustainable competitive advantages of enterprises. This paper focuses on the empirical study of the relationship between digital transformation and ESG performance of Shanghai-Shenzhen A-share listed multinational enterprises from 2011 to 2022, and explores the mechanism of digital transformation affecting ESG performance from the perspective of dynamic capabilities of enterprises. The results show that the degree of digital transformation has a positive relationship with ESG performance. Based on the research conclusions, the following suggestions are put forward: At the government level, the government should provide strong policy guidance and resource support for the promotion of digital transformation, solve difficulties and dredge blocked points. Continue to deepen the understanding of ESG concept, expand the influence of ESG, guide enterprises to take the initiative to practice ESG concept, cope with the voice of foreign countries in the ESG field, and support the acceleration of the construction of ESG rating system with unique Chinese characteristics. At the enterprise level, enterprises should integrate digital transformation into corporate strategy and management activities, actively seize the opportunities of digital development to achieve green transformation, improve the quality of internal control, and lay a good foundation for sustainable development of enterprises.