Randomized trial examines competitive efficiency linked with ESG practices and AI in manufacturing firms, suggesting pathways for enhanced performance.
Key Points
This study aims to explore how digital transformation and ESG practices affect competitiveness and financial performance in the Asian manufacturing sector.
Analyzed panel data from 4,028 manufacturing firms across Asia (2014-2024).
Employed Boone indicator and return on equity (ROE) to measure competitiveness.
Used static multi-way fixed effects panel with Driscoll-Kraay errors and dynamic two-step system GMM for analysis.
Liquidity, efficiency, firm size, AI-related imports, and environmentally related tax revenues significantly improved competitiveness.
ESG variables enhanced the explanatory power and robustness of competitiveness models.
Developed a digital sustainability competitiveness framework that incorporates digitalization and sustainability as key competition drivers.