Author: Dr. Gariba and colleagues.
The European Union (EU) continues to prioritize sustainable development, and achieving the Sustainable Development Goals (SDGs) requires a strategic focus on digital transformation and supply chain sustainability. As global challenges intensify, digitalization has emerged as a crucial enabler for building Sustainable Supply Chains (SSCs) that promote environmental, social, and economic resilience. However, despite growing recognition of its importance, the impact of digitalization on the SDGs, and the mediating role of SSCs in this relationship, remains complex and insufficiently explored. This study seeks to fill this gap by examining how digitalization contributes to SDG attainment through the integration of sustainable supply chain practices across EU economies.
Building on the resource-based view, triple bottom line, and dynamic capabilities theories, this research aims to uncover how digital capabilities can enhance sustainability performance within the EU-27 member states. The study adopts a large-scale, data-driven approach to address the lack of generalizability found in previous research, which often focused on specific industries or regions. By analyzing the interconnections among digital transformation, SSCs, and the SDGs, the study provides a comprehensive understanding of how innovation and technology integration can foster sustainability at a systemic level.
Using panel data extracted from Eurostat for the period 2013–2022, this study employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to evaluate the relationships among digitalization, SSCs, and the SDGs. The dataset includes 270 observations across EU-27 countries, ensuring robust statistical analysis and wide regional representation. In this context, digitalization refers to the adoption of digital technologies that enable business model innovation, improve operational efficiency, create new revenue streams, and enhance the environmental sustainability of supply chain processes. Sustainable supply chain practices are defined as the design, planning, execution, and monitoring of activities that generate value while minimizing ecological impact.
The findings reveal that digitalization positively influences both SSC practices and the achievement of SDGs across EU economies. Furthermore, SSCs play a significant mediating role in this relationship, emphasizing that the benefits of digitalization on sustainability are maximized when integrated into supply chain management. These results highlight the dual function of digital technologies, not only as drivers of efficiency and innovation but also as catalysts for broader sustainable development outcomes.
From a policy perspective, the results suggest that EU policymakers and business leaders should strengthen initiatives promoting digital integration within supply chain systems. By fostering innovation, transparency, and efficiency through digital tools, organizations can accelerate progress toward SDG targets such as responsible production (SDG 12), climate action (SDG 13), and industry innovation (SDG 9). This alignment of digitalization with sustainability priorities positions the EU as a global leader in sustainable economic transformation.
In conclusion, this study contributes to both academic literature and practical policymaking by bridging the knowledge gap between digital transformation and sustainable development. It demonstrates that sustainable supply chains are a key mechanism through which digitalization can advance the SDGs. The research provides actionable insights for governments, industries, and international organizations seeking to create digitally empowered and environmentally responsible economies across Europe.
Read the full article here to explore the detailed findings and their implications for both policymakers and practitioners.