THE INFLUENCE OF DIGITAL TECHNOLOGY FACTORS AND ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (D-ESG) ON SME SUSTAINABILITY

Abstract

Introduction: In an era of global economic challenges and uncertainties, research highlights the necessity for small and medium-sized enterprises (SMEs), crucial drivers of the national economy, to adapt and enhance their competitiveness for survival and sustainable growth. The application of digital technology in conjunction with the concept of sustainable organizational development (ESG), known as D-ESG, has therefore become a widely recognized strategic priority. Objective: 1) analyze the causal factors of digital D-ESG technology's impact on the sustainability of SMEs; 2) examine the direct and indirect influence of digital D-ESG factors on sustainability through variables such as logistics efficiency and supply chain management; and 3) propose strategic approaches to promote the sustainability of Thai enterprises through the application of digital ESG technologies. Method: This research combines quantitative and qualitative approaches. For the quantitative research, the population consisted of 459 registered and government-certified small and medium-sized enterprise (SME) entrepreneurs. Data were collected using questionnaires and analyzed using descriptive statistics, inferential statistics, and structural equation modeling with statistical software for social science research. For the qualitative research, in-depth interviews were conducted with 20 key informants using purposive sampling, and data were analyzed using content analysis. Results: findings reveal that the causal model of D-ESG technology factors directly and indirectly influences the sustainability of SME entrepreneurs, showing a significant fit with empirical data (χ²/df = 1.17, CFI = 1.00, GFI = 0.99, AGFI = 0.96, RMSEA = 0.020, SRMR = 0.006). Hypothesis testing confirmed that D-ESG technology has a significant positive direct influence on logistics performance, supply chain management, and enterprise sustainability, as well as a significant positive indirect influence through logistics performance and supply chain management at the 0.01. Conclusion: The qualitative findings support and enhance the understanding of quantitative results, highlighting the importance of integrating digital technology with ESG management to gain competitive advantage and long-term sustainability. Furthermore, it provides concrete strategic recommendations for entrepreneurs and policymakers to foster sustainable development through the application of D-ESG technology.