Cuadernos de Economía

ISSN : 0210-0266

Role of Industrial Digital Transformation in Improving Environmental Governance: A Study on the Non-Financial Sector of Saudi Arabia

  • Vimala Venugopal Muthuswamy , Department of Management, College of Business Administration, King Faisal University, Al-Ahsa 31982, Saudi Arabia.
  • Dr. B Sudhakar , Dean and Director, Management Department Hindustan College of Arts and Science Coimbatore.


Digital transformation, environmental governance, Saudi Arabia.


The primary aim of this research is to delineate the significance of digital transformation (Digit) in enhancing environmental governance (ENG) within the non-financial sector of Saudi Arabia. The data was obtained from the annual reports of the non-financial sector in Saudi Arabia. The study utilised a deductive quantitative research methodology and employed a longitudinal research design. The nature of the research was explanatory, as it involved the development of theories and the formulation of hypotheses. The findings from the panel data analysis suggest that the variable Digit has a statistically significant and positive effect on the variable ENG. The aforementioned outcome suggests that the implementation of digital transformation has significantly contributed to the environmental governance practises within the non-financial sector of Saudi Arabia. Prior studies predominantly concentrated on various nations and sectors, inadvertently neglecting the manufacturing industry in Saudi Arabia. The capacity of digitalization, commonly referred to as digital technologies or the internet of things, to effectively tackle significant challenges in environmental governance has been emphasised, and recent studies have contributed to the current pool of knowledge on this subject matter. The implementation of improved governance practises has elucidated the existence of strategies to mitigate environmental concerns. Furthermore, it frequently offers a thorough examination of the scope, acceptance, implementation, and methodology crucial for achieving sustainable societal and ecological advancements in the long run. Furthermore, the outcomes of this study hold significant practical implications in addition to their contribution to policy development. The study focused on the non-financial sector, specifically examining the influence of digitalization on the economic performance of non-financial industries in Saudi Arabia. Therefore, this research can be regarded as a groundbreaking study that incorporates an expanded model to analyse the influence of digital technology on the field of English language and literature.