The Mediating Role of Sustainability in the Relationship Between Digital Innovation And Environmental Performance Improvement: An Applied Study in the Jordanian Industrial Sector

Rowaida Al-AqrabawiKhaled Khalaf AlafiBader Ismaeel

DOI 10.7160/aol.2026.180202
No 2/2026, June
pp. 17-32

Al-Aqrabawi, R., Alafi, K. K. and Ismaeel B. (2026) "The Mediating Role of Sustainability in the Relationship Between Digital Innovation and Environmental Performance Improvement: An Applied Study in the Jordanian Industrial Sector", AGRIS on-line Papers in Economics and Informatics, Vol. 18, No. 2, pp. 17-32. ISSN 1804-1930. DOI 10.7160/aol.2026.180202.

Abstract

This study investigates how digital innovation (DI) enhances environmental-performance improvement (EPI) in the Jordanian industrial sector and whether this relationship is channelled through sustainability (SUS). A structured questionnaire was administered to managers in large and medium-sized manufacturing firms, and the data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results show that DI exerts a significant positive effect on both SUS and EPI, while SUS itself has a direct positive impact on EPI; moreover, sustainability partially mediates the DI → EPI pathway, confirming that technological upgrades yield meaningful ecological gains only when embedded in explicit sustainability programmes. The model explains 44 % of the variance in SUS and 46.7 % in EPI, indicating substantial explanatory power. These findings underline the strategic necessity of integrating ESG principles into digital-transformation roadmaps: real-time data capture and analytics equip firms to anticipate environmental risks, while sustainability frameworks ensure that digital tools are harnessed toward long-term economic, social and environmental objectives. By coupling digital innovation with institution-wide sustainability initiatives, industrial organisations can achieve resource efficiency, bolster regulatory compliance and strengthen competitive advantage in increasingly eco-conscious markets

Keywords

Digital innovation, sustainability, environmental performance, Jordanian industry, environmental management, sustainable development.

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