Digital technology adoption influencing ESG performance in SMEs

Abstract

In the era of sustainable business transformation, digital technologies are increasingly seen as enablers of Environmental, Social, and Governance (ESG) performance. This study investigates how the adoption of financial technology (FinTech), cloud computing, and generative artificial intelligence (AI) influences ESG outcomes among small and medium-sized enterprises (SMEs) in Thailand. Drawing on the Technology–Organization–Environment framework and the Resource-Based View, the study introduces the concept of Digital-Driven ESG Enablement, which conceptualizes digital tools as strategic resources that activate ESG performance in resource-constrained firms. Data were collected from 175 SME owners and executives via an online survey. The results show that all three technologies significantly enhance ESG performance, with FinTech having the most substantial impact, followed by generative AI and cloud computing. These findings offer new insights into how digital transformation can support sustainability goals in emerging economies, and provide strategic direction for SME digitalization policies and responsible innovation practices.