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Bridging digital intelligence and ESG outcomes: the role of mindfulness and eco-financial agility in SMEs

International Entrepreneurship and Management Journal

Published online on

Abstract

{"p"=>"As sustainability becomes more important and digital transformation happens, entrepreneurial companies are under immense pressure to make sure their digital skills match their Environmental, Social, and Governance (ESG) performance. This study creates and tests a dynamic capabilities-based model that looks at how digital innovation leadership, digital risk intelligence, and ESG-aligned digital compliance affect sustainable ESG performance and resilient financial outcomes through two serial mediators: digital mindfulness and eco-financial agility. The results, which are based on industries that rely heavily on technology, show that digital innovation leadership and ESG-aligned digital compliance greatly improve digital mindfulness. This, in turn, boosts eco-financial agility, which is an important skill that allows companies to change their financial plans to meet their sustainability goals. Eco-financial agility has a beneficial effect on both sustainable ESG performance and resilient financial outcomes, which shows that it is dual performance enabler. It is interesting to note that digital risk intelligence did not have a big effect on digital mindfulness. This suggests that just being aware of technical risks may not be enough to encourage mindful involvement. The paper builds on dynamic capabilities theory by showing that digital mindfulness and eco-financial agility are cognitive and operational mediators that turn digital intelligence into ESG results. To establish businesses that are financially stable and can last, executives, compliance systems, and digital cultures need to work together. The study gives a new way to think about developing digital skills in business that are focused on ESG."}