Institutional Pressures on Sustainability and Green Performance: The Mediating Role of Digital Business Model Innovation

Abstract

The purpose of this study is to examine the mediating role of digital business model innovation (DBMI) in the relationship between institutional pressures (i.e., regulation and normative pressures) on sustainability and green performance. To verify our hypotheses, we performed the structural equation model as an analytical technique using 396 datasets from firms listed on the China Stock Exchange. The structural results showed that institutional pressures had a positive effect on DBMI, and that DBMI had a significant effect on green performance. The analysis also supports the full mediation role of DBMI between institutional pressures and green performance. We believe that our findings contribute to ongoing knowledge by enriching institutional perspectives on sustainable management and providing managers with practical implications on how to drive DBMI.