Digitally Enabled Sustainability Transitions: The Role of Technological Innovation and Institutional Readiness in Advancing Environmental Performance.

Rapid digital transformation is reshaping pathways towardsustainable development and environmental governance. Emergingtechnologies such as artificial intelligence, blockchain, and the Internet ofThings are increasingly deployed to enhance environmental monitoring,optimize resource use, and strengthen accountability across industries. Yet,their contribution to sustainability transitions remains uneven, particularlyin developing and emerging economies where institutional readiness variessignificantly. This conceptual paper makes an original contribution byintegrating digital innovation, institutional theory, and dynamic capabilitiestheory into a unified framework that explains how digital technologiestranslate into environmental performance under different institutionalconditions. Drawing on an extensive review of interdisciplinary literature,the study develops a novel conceptual model linking technological adoption,institutional readiness, and organizational capabilities to sustainabilityoutcomes. The paper identifies critical barriers, including regulatoryfragmentation, digital divides, financial constraints, and limited technicalcapacity, that constrain green digital transformation. By theorizing the jointand conditional effects of digital innovation and institutional readiness, thestudy advances sustainability transitions scholarship and provides actionableinsights for policymakers and organizations seeking to leveragedigitalization for environmental performance, particularly in institutionallydiverse contexts.