Green Digital Technologies as Catalysts for Sustainable Business Transformation: Institutional Drivers of IFRS-Aligned Climate Disclosure in an Emerging Capital Market

The paper explores how Green digital technologies (GDTs) - ERP systems, cloud, IoT, artificial intelligence, and big data analytics can be used to improve the quality of ESG disclosures of industrial listed companies in the Amman Stock Exchange (ASE). On the basis of institutional isomorphism theory, we examine the relationship between the coercive, mimetic and normative institutional pressures and adoption of green technology interaction on the sustainability reporting practices. On the basis of panel data of 30 ASE-listed industrial companies during the period of 20202024 (N = 146 firm-year observations), we use pooled OLS and random-effects frameworks characterized by strong clustering of standard errors. Findings show that Green Digital Technology Index has a positive and significant agreement with the ESG disclosure scores (0.019; 0.024; 2.486, p value 0.019; 2.507, p value 0.024), with adopting firms having an average score of 1.73 higher. Its impact has been the most significant to the environmental aspect ( = 3.460, 0.074) = 0.074. Although institutional pressures fail to modulate the GDT-disclosure relationship, mediation analysis shows that institutional pressure is also a powerful predictor of GDT adoption (0.098, p 0.100), indicating that institutional forces play the role through technology adoption. The quality of disclosure has a negative relationship with CEO duality ( -4.863, p < 0.001). The results validate the assumption that the green digital technologies are a transmission mechanism where institutional pressures are converted to an enhancement of sustainability disclosure in the emerging markets.