This thesis investigates the impact of digitalisation on sustainability performance within manufacturing firms in Northern Europe from 2010 to 2023 at the age of Industry 4.0. It explores how digital technologies like IoT, cyber-physical systems, and big data have transformed production processes, enhancing sustainability across environmental, social, and governance (ESG) criteria. The research employs a quantitative approach, utilising regression analyses of data sourced from the Refinitiv database to assess the influence of digitalisation on ESG performance in manufacturing firms across Northern Europe. The theoretical underpinnings of this study are grounded in an integration of shareholder and stakeholder theories, which offer a detailed examination of how digital transformations are reshaping corporate governance dynamics. It also encompasses a discussion on agency theory and legitimacy theory, highlighting how differences in corporate governance outlooks impact sustainability initiatives. Moreover, the research evaluates the potential benefits and challenges associated with digitalisation through the lens of the resource-based view and the dynamic capabilities framework. This analysis elucidates how digitalisation provides a competitive advantage, for example, by promoting efficiency and decreasing energy consumption while acknowledging the possibility of increased resource use, a phenomenon referred to as the Jevon Paradox. Findings indicate that digitalisation facilitates improved sustainability outcomes to enhance financial performance by optimising resource utilisation, reducing waste, and improving operational efficiencies. However, variations exist depending on the type and intensity of digitalisation. The results highlight that while digital technologies drive significant improvements in environmental management and operational efficiency, the benefits are not uniformly experienced across all firms, suggesting a differentiated impact based on company size and digital maturity. This research significantly contributes to the academic literature by providing empirical evidence of digitalisation’s role in enhancing sustainability within the manufacturing sector. Importantly, it offers practical insights for policymakers and business leaders, equipping them with the knowledge to leverage digital transformation to meet sustainability goals effectively. Future research must delve deeper into the long-term effects of digital technologies on sustainability, investigate the impacts across different industrial contexts, and examine the role of regulatory frameworks in shaping digital transformation strategies. This thesis underscores the urgent need for manufacturing firms to harness digital innovations responsibly to foster sustainable development in the digital age.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:umu-224971 |
| Date | January 2024 |
| Creators | Olsson, Viktor, Zhi, Xu |
| Publisher | Umeå universitet, Företagsekonomi |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf, application/pdf |
| Rights | info:eu-repo/semantics/openAccess, info:eu-repo/semantics/openAccess |
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