From digital adoption to SDG alignment: examining the dual pathways of transformational sustainability governance through stakeholder engagement and innovation commitment under environmental dynamism

Purpose Two forces are remaking how firms pursue sustainability: how deeply they adopt digital technology, and how seriously their governance treats sustainability as a strategic obligation. This study asks how both shape corporate alignment with the Sustainable Development Goals (SDGs), and traces the internal routes through which that influence travels. Design/methodology/approach We surveyed 258 senior and middle managers across four Vietnamese industries and modeled the data with covariance-based structural equation modeling (CB-SEM), using PROCESS macros to probe the mediation and the conditional effects. Findings Digital adoption intensity and transformational sustainability governance each lift SDG alignment, both directly and through two parallel channels stakeholder engagement and innovation commitment. Turbulence in the market sharpens the innovation channel. The more volatile the environment, the more strongly these resources convert into innovation, and the larger their indirect contribution to SDG performance. Practical implications Firms that build digital capability and sustainability governance together, rather than in isolation, develop the stakeholder relationships and innovation capacity that SDG alignment demands. That payoff is largest precisely where conditions are least stable. Novelty/contribution Digital transformation and sustainability governance are usually studied apart. Bringing them into one model and showing that the innovation route between them is amplified by environmental dynamism clarifies how choices made inside the organization connect to goals defined globally.