Integrating ESG into Corporate Strategy: Unveiling the Moderating Effect of Digital Transformation on Green Innovation through Employee Insights

With climate warming, the human living environment faces significant challenges, and global environmental protection and sustainable development are accelerating. As a result, ESG has become an essential area of research. This study explores the impact of employees' perceptions of corporate ESG performance on green innovation, focusing on the moderating role of digital transformation. A survey was conducted among 316 employees from the wholesale, retail, IT, and computer services industries to validate this study. Research results show that employees' cognitions of corporate ESG performance have a positive impact on green innovation. In addition, digital transformation plays a positive moderating role in the impact of the environmental (E) and social (S) dimensions of ESG performance on green innovation. These findings not only highlight the critical role of personal awareness and ESG management concepts in future corporate strategies but also indicate the importance of the extent of digital transformation in companies to improve innovation performance.