This study examines how digital transformation enables sustainable enterprise development through the integration of environmental, social, and governance (ESG) factors across diverse sectors. Drawing on evidence from manufacturing SMEs, Chinese listed firms, and underserved markets in the United States, the research develops a comprehensive understanding of the digital–sustainability nexus. Anchored in Resource-Based View, Dynamic Capabilities Theory, and Resource Orchestration Theory, the study highlights how digital technologies act as strategic enablers that enhance organisational capabilities and resource utilisation. The findings reveal that digital transformation significantly improves ESG performance and firm value, particularly when supported by green innovation, sterilization, and generative artificial intelligence. Integrated digital platforms generate synergistic benefits, allowing firms to achieve greater outcomes than isolated technological adoption. However, the effectiveness of these pathways is contingent upon contextual factors such as digital maturity, ownership structure, geographic location, and managerial expertise. The study also identifies innovation capabilities as a key mediating mechanism, while sterilization plays a complementary but less dominant role. Despite these advantages, barriers including financial constraints, digital literacy gaps, and infrastructural limitations continue to hinder adoption, especially among SMEs. The research underscores the need for policy interventions such as digital subsidies, ESG standardisation, and institutional support systems to bridge these gaps. Overall, the study contributes to the growing literature by demonstrating that digital transformation, when strategically aligned with ESG objectives, can drive sustainable competitiveness and inclusive economic growth.
