Towards Sustainable Digital Transformation: The Interplay of AI Adoption, SDG Behaviour, and Managerial Practices in Middle Eastern Manufacturing Firms

Abstract/Description

This study investigates the impact of technological advancement, Sustainable Development Goal (SDG)-aligned behaviour, and digitalization management on the digitalization performance of manufacturing firms in the Middle East. Using data from a survey of 405 companies in the UAE and analyzed through partial least squares structural equation modelling, this research explores how digital technologies and artificial intelligence (AI) adoption interact with managerial competencies and pro-social SDG behaviour to influence digitalization performance. The findings reveal that digital technologies alone do not directly enhance digitalization performance. Instead, digitalization management and SDG-aligned behaviour serve as critical mediators, underscoring the importance of strategic and socially responsible leadership in digital transformation efforts. The study highlights the need for robust managerial frameworks and ethical orientations to fully leverage the benefits of digital technologies. The findings offer valuable insights for practitioners aiming to design more effective digital transformation strategies in similar contexts.

Keywords

Digital technologies, AI adoption, SDG pro-social behaviour, digitalization management, digitalization performance.

Track

Finance

Session Number/Theme

Finance - Session I

Start Date/Time

13-6-2025 4:10 PM

End Date/Time

13-6-2025 5:30 PM

Location

MCS – 3 AMAN CED Building

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Jun 13th, 4:10 PM Jun 13th, 5:30 PM

Towards Sustainable Digital Transformation: The Interplay of AI Adoption, SDG Behaviour, and Managerial Practices in Middle Eastern Manufacturing Firms

MCS – 3 AMAN CED Building

This study investigates the impact of technological advancement, Sustainable Development Goal (SDG)-aligned behaviour, and digitalization management on the digitalization performance of manufacturing firms in the Middle East. Using data from a survey of 405 companies in the UAE and analyzed through partial least squares structural equation modelling, this research explores how digital technologies and artificial intelligence (AI) adoption interact with managerial competencies and pro-social SDG behaviour to influence digitalization performance. The findings reveal that digital technologies alone do not directly enhance digitalization performance. Instead, digitalization management and SDG-aligned behaviour serve as critical mediators, underscoring the importance of strategic and socially responsible leadership in digital transformation efforts. The study highlights the need for robust managerial frameworks and ethical orientations to fully leverage the benefits of digital technologies. The findings offer valuable insights for practitioners aiming to design more effective digital transformation strategies in similar contexts.