Multi-Level Model of Digital Transformation and ESG Integration for Decarbonizing Supply Chains in Emerging Economies

• Ada John

  ladoke Akintola university of technology

  Author

The decarbonization of supply chains has become a strategic imperative in global efforts to combat climate change; yet, empirical evidence on how this transition unfolds in emerging economies remains scarce. This study addresses this gap by developing and testing a multi-level model that examines the interplay between institutional voids, regulatory pressures, digital transformation, and ESG integration in driving supply chain decarbonization within Nigeria's carbon-intensive sectors. Drawing on survey data from 306 supply chain professionals across manufacturing, construction, energy, and logistics industries, the study employs structural equation modeling to test hypothesized relationships. Findings reveal that regulatory stringency alone is insufficient in weak institutional environments; regulatory enforcement, rather than the formal existence of regulations, is the true catalyst for sustainable transitions (β = 0.412, p < 0.001). ESG-driven strategies exhibit strong mediating effects (indirect effect = 0.289, p < 0.01) but are significantly constrained by institutional voids, including infrastructural deficits, financial constraints, and policy instability. Notably, digital innovations—particularly blockchain, AI, and IoT—emerge as critical enablers of carbon transparency and traceability, achieving a predictive accuracy of 89.4% in the integrated framework. The study contributes a replicable, empirically validated framework that bridges institutional theory, complexity theory, and structuration theory, offering actionable insights for policymakers, sustainability officers, and technology innovators seeking to align economic development with climate resilience in rapidly industrializing regions.

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Copyright (c) 2026 Ada John (Author)

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