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This study examines whether firm-level digital transformation capability (DTC) is associated with stronger operational resilience and whether governance structures condition this relationship. Operational resilience is treated here as a business-sustainability dimension based on continuity and stability of operating outcomes, not as a broad measure of environmental, social, and governance (ESG), environmental, or social sustainability performance. Using an international firm-year panel that combines standardized financial data with disclosure-based measures of implemented digital practices and governance architecture, the analysis provides observational evidence on the role of DTC in strengthening firm adaptability. In the controlled fixed-effects models, DTC is positively associated with the sales resilience ratio (SRR) (β = 0.071) and the cash-flow stability index (CFSI) (β = 0.058); an interquartile increase in DTC corresponds to approximately 0.024 in SRR and 0.019 in CFSI, or roughly 16% and 10% of their sample standard deviations. The association is stronger in firms with stronger internal oversight, auditable review mechanisms, and external ecosystem monitoring. Mechanism analyses point to supply flexibility and data visibility as plausible transmission paths, while additional tests address reproducibility, disclosure-intensity bias, construct validity, alternative governance specifications, placebo timing, restricted-shock logic, and measurement boundaries. Overall, the findings provide evidence consistent with a contingent and observational association between DTC and operational resilience when digital capabilities are embedded within accountable governance frameworks.
Chibani et al. (Wed,) studied this question.