IT-enabled organisational transformation and green employment growth in microfirms
Author(s)
Demirel, Pelin
Kesidou, Effie
Gamze Ozturk, Danisman
Type
Journal Article
Abstract
In this paper, we explore whether IT-enabled organisational transformation (ITOT) moderates the relationship between eco-innovation and the growth performance of microfirms. Our framework conceptualises ITOT in microfirms as a multistage process that includes: (i) setting a digitalisation strategy, (ii) adopting advanced information systems technology (IST) artefacts and (iii) developing in-house digital resources and capabilities. The analysis of a sample of 5015 microfirms from 39 countries indicates that eco-innovations boost firm growth when coupled with (i) a formalised digitalisation strategy, (ii) adoption of advanced IST artefacts (e.g., digital technologies that characterise Industry 4.0) and (iii) digital resources and capabilities in microfirms. These findings contribute to the growing digitalisation literature by highlighting the essential role that ITOT processes play in enabling sustainability-led growth pathways for microfirms. The paper advocates for the viability and performance benefits of a twin digital and ecological transformation and showcases the potential of ITOT for an economically successful net-zero transition that embraces microfirms.
Date Issued
2025-05-01
Date Acceptance
2025-02-25
Citation
Business Strategy and the Environment, 2025, 34 (4), pp.5031-5058
ISSN
0964-4733
Publisher
Wiley
Start Page
5031
End Page
5058
Journal / Book Title
Business Strategy and the Environment
Volume
34
Issue
4
Copyright Statement
© 2025 The Author(s). Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
License URL
Identifier
10.1002/bse.4239
Subjects
digital capabilities
digital strategy
eco-innovation
green growth
IT-enabled organisational transformation (ITOT)
microfirm
sustainability
Publication Status
Published
Date Publish Online
2025-03-10