Document Type : ORIGINAL ARTICLE
Authors
1 Razi University
2 Razi university
Abstract
Digital transformation is one of the main drivers of change in manufacturing industries; however, the mechanisms through which it influences sustainable development in developing countries are not yet fully understood. Focusing on Iran’s industrial sector, this study examines a causal framework in which digital transformation facilitates sustainable development through technological innovation. The conceptual model was developed based on the dynamic capabilities perspective and the four dimensional sustainability approach and was analyzed using partial least squares structural equation modeling with SmartPLS software. Survey data were collected from manufacturing industries in Iran, and three main paths of the model were tested. The findings show that digital transformation has a positive and significant effect on technological innovation, and technological innovation significantly strengthens sustainable development. The direct effect of digital transformation on sustainable development was not significant, although the explanatory power of the model was acceptable. Mediation analysis confirmed the full mediating role of technological innovation, indicating that the effect of digital transformation on sustainable development is mainly transmitted through strengthening innovation, organizational learning, and university–industry collaboration. From a policy perspective, it is recommended that industrial digitalization programs be aligned with innovation and sustainability goals and that their institutional foundations be strengthened through improved data governance and regulatory stability. The study empirically tests an integrated causal model in Iran’s industrial sector using quantitative data analysis and validation procedures, providing statistical evidence explaining the relationship between digital transformation, technological innovation, and sustainable development.
Keywords
)