{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,4,4]],"date-time":"2026-04-04T05:08:43Z","timestamp":1775279323280,"version":"3.50.1"},"reference-count":61,"publisher":"MDPI AG","issue":"4","license":[{"start":{"date-parts":[[2026,4,2]],"date-time":"2026-04-02T00:00:00Z","timestamp":1775088000000},"content-version":"vor","delay-in-days":0,"URL":"https:\/\/creativecommons.org\/licenses\/by\/4.0\/"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["Systems"],"abstract":"<jats:p>Agricultural enterprises serve as the cornerstone of food security. However, they operate under significant resource constraints and environmental risks. Adopting a systems lens, this study examines digitalization as a critical variable reshaping the input\u2013output logic of agribusinesses. Using a longitudinal panel dataset of Chinese listed agricultural firms from 2013 to 2022 and Ordinary Least Squares regression, the study empirically identifies the mechanisms driving ESG performance. The results demonstrate that digitalization significantly enhances overall ESG performance, functioning as a governance mechanism that improves internal resource integration and transparency. Critically, the moderation analysis reveals a dynamic substitution relationship among system elements. Traditional inputs, specifically management expenses, financial slack, and intangible assets, exert significant negative moderating effects. This confirms the logic of factor substitution, suggesting that as digitalization advances, traditional governance modes relying on high administrative costs face diminishing marginal returns. In the environmental dimension, digitalization facilitates a transition from post-event remediation to whole-process control through intelligent traceability, effectively internalizing external constraints and reducing waste emissions. Additionally, heterogeneity analysis highlights significant structural variations. The ESG-enhancing effect of digitalization is more pronounced in firms characterized by high financial leverage, low long-term debt, and low industry concentration. Spatially, the marginal improvement is stronger in Western regions compared to the East, underscoring the Hu Huanyong Line as a critical structural boundary. Ultimately, digitalization serves as a core governance element that drives the structural transformation from traditional operating paradigms to digital governance architectures, thereby providing a robust pathway for corporate sustainability.<\/jats:p>","DOI":"10.3390\/systems14040387","type":"journal-article","created":{"date-parts":[[2026,4,2]],"date-time":"2026-04-02T11:51:03Z","timestamp":1775130663000},"page":"387","update-policy":"https:\/\/doi.org\/10.3390\/mdpi_crossmark_policy","source":"Crossref","is-referenced-by-count":0,"title":["A Systems Lens on Digitalization and ESG Performance: Empirical Evidence from Chinese Agricultural Firms"],"prefix":"10.3390","volume":"14","author":[{"ORCID":"https:\/\/orcid.org\/0009-0005-1740-994X","authenticated-orcid":false,"given":"Qirui","family":"Zhang","sequence":"first","affiliation":[{"name":"China Academy for Rural Development, Zhejiang University, Hangzhou 310058, China"}],"role":[{"role":"author","vocabulary":"crossref"}]},{"ORCID":"https:\/\/orcid.org\/0000-0001-9109-0272","authenticated-orcid":false,"given":"Longbao","family":"Wei","sequence":"additional","affiliation":[{"name":"China Academy for Rural Development, Zhejiang University, Hangzhou 310058, China"}],"role":[{"role":"author","vocabulary":"crossref"}]},{"ORCID":"https:\/\/orcid.org\/0009-0008-6682-1801","authenticated-orcid":false,"given":"Xinhui","family":"Feng","sequence":"additional","affiliation":[{"name":"School of Public Affairs, Zhejiang University, Hangzhou 310058, China"}],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Wangfang","family":"Xu","sequence":"additional","affiliation":[{"name":"School of Accounting, Zhejiang University of Finance and Economics, Hangzhou 310018, China"}],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"1968","published-online":{"date-parts":[[2026,4,2]]},"reference":[{"key":"ref_1","doi-asserted-by":"crossref","first-page":"422","DOI":"10.1111\/ajae.12160","article-title":"Overcoming Global Food Security Challenges Through Science and Solidarity","volume":"103","author":"Barrett","year":"2021","journal-title":"Am. J. Agric. Econ."},{"key":"ref_2","doi-asserted-by":"crossref","first-page":"275","DOI":"10.1007\/s13593-012-0110-0","article-title":"Agriculture and Greenhouse Gases, a Common Tragedy. A Review","volume":"33","author":"Stavi","year":"2013","journal-title":"Agron. Sustain. Dev."},{"key":"ref_3","doi-asserted-by":"crossref","unstructured":"Villadsen, K., and Lundberg, J. (2023). Guest Editors\u2019 Introduction to Special Issue: \u2018Foucault, Corporate Social Responsibility, and Corporate Sustainability\u2019. Sustainability, 15.","DOI":"10.3390\/su15065110"},{"key":"ref_4","doi-asserted-by":"crossref","first-page":"19131","DOI":"10.1007\/s10668-023-03458-9","article-title":"Contributions of Artificial Intelligence for Circular Economy Transition Leading Toward Sustainability: An Explorative Study in Agriculture and Food Industries of Pakistan","volume":"26","author":"Ali","year":"2024","journal-title":"Environ. Dev. Sustain."},{"key":"ref_5","doi-asserted-by":"crossref","first-page":"121423","DOI":"10.1016\/j.techfore.2021.121423","article-title":"Corporate Transformation toward Industry 4.0 and Financial Performance: The Influence of Environmental, Social, and Governance (ESG)","volume":"175","author":"Alkaraan","year":"2022","journal-title":"Technol. Forecast. Soc. Change"},{"key":"ref_6","doi-asserted-by":"crossref","first-page":"104961","DOI":"10.1016\/j.respol.2024.104961","article-title":"Profiting from Innovation When Digital Business Ecosystems Emerge: A Control Point Perspective","volume":"53","author":"Bohnsack","year":"2024","journal-title":"Res. Policy"},{"key":"ref_7","doi-asserted-by":"crossref","first-page":"107700","DOI":"10.1016\/j.compag.2023.107700","article-title":"Agri-Food 4.0: Drivers and Links to Innovation and Eco-Innovation","volume":"207","author":"Marti","year":"2023","journal-title":"Comput. Electron. Agric."},{"key":"ref_8","doi-asserted-by":"crossref","unstructured":"Mavlutova, I., Spilbergs, A., Verdenhofs, A., Natrins, A., Arefjevs, I., and Volkova, T. (2022). Digital Transformation as a Driver of the Financial Sector Sustainable Development: An Impact on Financial Inclusion and Operational Efficiency. Sustainability, 15.","DOI":"10.3390\/su15010207"},{"key":"ref_9","doi-asserted-by":"crossref","first-page":"102920","DOI":"10.1016\/j.ribaf.2025.102920","article-title":"ESG Performance and Total Factor Productivity of Enterprises: The Role of Digitization","volume":"77","author":"Geng","year":"2025","journal-title":"Res. Int. Bus. Financ."},{"key":"ref_10","doi-asserted-by":"crossref","first-page":"960","DOI":"10.1007\/s12063-025-00561-0","article-title":"How Does Digital Supply Chain Transformation Determine Environmental, Social, and Governance (ESG) Performance? Mediating Role of Firm Integration and Moderating Effect of Organizational Digital Culture","volume":"18","author":"Wang","year":"2025","journal-title":"Oper. Manag. Res."},{"key":"ref_11","doi-asserted-by":"crossref","unstructured":"Luo, H., Yu, Y., Wang, L., Wu, Y., and Liu, Y. (2025). The Impact of Supply Chain Finance on the Total Factor Productivity of Agricultural Enterprises: Evidence from China. Agriculture, 15.","DOI":"10.3390\/agriculture15121325"},{"key":"ref_12","doi-asserted-by":"crossref","unstructured":"Sun, Q., Yuan, Y., Xu, B., Gao, S., Zhai, X., Xu, F., and Shi, J. (2025). Innovative Technologies Reshaping Meat Industrialization: Challenges and Opportunities in the Intelligent Era. Foods, 14.","DOI":"10.3390\/foods14132230"},{"key":"ref_13","doi-asserted-by":"crossref","first-page":"106756","DOI":"10.1016\/j.eneco.2023.106756","article-title":"Can Digital Finance Empowerment Reduce Extreme ESG Hypocrisy Resistance to Improve Green Innovation?","volume":"125","author":"Zhang","year":"2023","journal-title":"Energy Econ."},{"key":"ref_14","doi-asserted-by":"crossref","first-page":"661","DOI":"10.1108\/SCM-12-2022-0484","article-title":"Leveraging on Technology and Sustainability to Innovate the Supply Chain: A Proposal of Agri-Food Value Chain Model","volume":"29","author":"Corallo","year":"2024","journal-title":"Supply Chain Manag. Int. J."},{"key":"ref_15","first-page":"69","article-title":"Using Sustainable Development Strategies to Increase the Competitive Advantages of Agricultural Enterprises","volume":"3","author":"Dovgal","year":"2025","journal-title":"\u00c8kon. APK"},{"key":"ref_16","doi-asserted-by":"crossref","first-page":"103773","DOI":"10.1016\/j.respol.2019.03.018","article-title":"The Digital Transformation of Innovation and Entrepreneurship: Progress, Challenges and Key Themes","volume":"48","author":"Nambisan","year":"2019","journal-title":"Res. Policy"},{"key":"ref_17","doi-asserted-by":"crossref","first-page":"118","DOI":"10.1016\/j.jsis.2019.01.003","article-title":"Understanding digital transformation: A review and a research agenda","volume":"28","author":"Vial","year":"2019","journal-title":"J. Strateg. Inf. Syst."},{"key":"ref_18","doi-asserted-by":"crossref","first-page":"829","DOI":"10.1080\/00207543.2018.1488086","article-title":"The Impact of Digital Technology and Industry 4.0 on the Ripple Effect and Supply Chain Risk Analytics","volume":"57","author":"Ivanov","year":"2019","journal-title":"Int. J. Prod. Res."},{"key":"ref_19","doi-asserted-by":"crossref","first-page":"69","DOI":"10.1016\/j.indmarman.2016.06.013","article-title":"Servitization, Digitization and Supply Chain Interdependency","volume":"60","author":"Bustinza","year":"2017","journal-title":"Ind. Mark. Manag."},{"key":"ref_20","doi-asserted-by":"crossref","first-page":"105","DOI":"10.5465\/annals.2015.0095","article-title":"Similar But Not the Same: Differentiating Corporate Sustainability from Corporate Responsibility","volume":"11","author":"Bansal","year":"2017","journal-title":"Acad. Manag. Ann."},{"key":"ref_21","doi-asserted-by":"crossref","first-page":"866","DOI":"10.1016\/j.jclepro.2017.02.002","article-title":"Systems Thinking: A Review of Sustainability Management Research","volume":"148","author":"Williams","year":"2017","journal-title":"J. Clean. Prod."},{"key":"ref_22","doi-asserted-by":"crossref","first-page":"1207","DOI":"10.1007\/s12571-025-01569-x","article-title":"Using Clean Fuels Promotes Diverse Diets and Health in Chinese Households","volume":"17","author":"Feng","year":"2025","journal-title":"Food Secur."},{"key":"ref_23","doi-asserted-by":"crossref","first-page":"145984","DOI":"10.1016\/j.jclepro.2025.145984","article-title":"Which Urban Expansion Pattern Dominates the Variation of Carbon Emission Performance?\u2014Evidence from 244 Cities in China","volume":"519","author":"Feng","year":"2025","journal-title":"J. Clean. Prod."},{"key":"ref_24","doi-asserted-by":"crossref","first-page":"115780","DOI":"10.1016\/j.rser.2025.115780","article-title":"How Does Digital Transformation Drive Green Innovation in Agricultural Supply Chains?","volume":"217","author":"Zhou","year":"2025","journal-title":"Renew. Sustain. Energy Rev."},{"key":"ref_25","doi-asserted-by":"crossref","first-page":"352","DOI":"10.1002\/bse.3494","article-title":"Digitalization Transformation and ESG Performance: Evidence from China","volume":"33","author":"Lu","year":"2024","journal-title":"Bus. Strategy Environ."},{"key":"ref_26","doi-asserted-by":"crossref","first-page":"106515","DOI":"10.1016\/j.econmod.2023.106515","article-title":"The Peer Effect of Digital Transformation and Corporate Environmental Performance: Empirical Evidence from Listed Companies in China","volume":"128","author":"Ren","year":"2023","journal-title":"Econ. Model."},{"key":"ref_27","doi-asserted-by":"crossref","unstructured":"Wang, Y., and Wang, D.D. (2025). The Dual Path of the Impact of Digital Technology Adoption on ESG Performance. Sustainability, 17.","DOI":"10.3390\/su17062341"},{"key":"ref_28","doi-asserted-by":"crossref","unstructured":"Zhang, F., and Zhu, J. (2025). Beyond Compliance: How Disruptive Innovation Unleashes ESG Value Under Digital Institutional Pressure. Systems, 13.","DOI":"10.3390\/systems13080644"},{"key":"ref_29","doi-asserted-by":"crossref","first-page":"4547","DOI":"10.1002\/bse.3718","article-title":"Digital Transformation, ESG Practice, and Total Factor Productivity","volume":"33","author":"Ding","year":"2024","journal-title":"Bus. Strategy Environ."},{"key":"ref_30","doi-asserted-by":"crossref","unstructured":"Wu, Z., Liang, Y., Ji, R., and Zhang, S. (2025). Microeconomic Effects of Digital Transformation on Total Factor Productivity: Moderating Effects and Mechanisms. Systems, 13.","DOI":"10.3390\/systems13110939"},{"key":"ref_31","first-page":"355","article-title":"Nonlinear Effects of Enterprise Digital Transformation on Environmental, Social and Governance (ESG) Performance: Evidence from China","volume":"15","author":"Yang","year":"2024","journal-title":"Sustain. Account. Manag. Policy J."},{"key":"ref_32","doi-asserted-by":"crossref","first-page":"783","DOI":"10.1038\/s41598-023-48636-x","article-title":"The Impact of Digital Transformation and Earnings Management on ESG Performance: Evidence from Chinese Listed Enterprises","volume":"14","author":"Wang","year":"2024","journal-title":"Sci. Rep."},{"key":"ref_33","doi-asserted-by":"crossref","unstructured":"Yan, F., Baihui, X., and Su, Y. (2025). Unveiling the Synergy Between ESG Performance and Digital Transformation. Systems, 13.","DOI":"10.3390\/systems13090786"},{"key":"ref_34","doi-asserted-by":"crossref","first-page":"3287","DOI":"10.1108\/IJPPM-05-2025-0387","article-title":"How Institutional Pressures Shape Human-Centric Industry 5.0 and ESG: Insights from the China\u2013Pakistan Economic Corridor","volume":"74","author":"Ahmed","year":"2025","journal-title":"Int. J. Product. Perform. Manag."},{"key":"ref_35","doi-asserted-by":"crossref","first-page":"103794","DOI":"10.1016\/j.agsy.2023.103794","article-title":"A Pending Task for the Digitalisation of Agriculture: A General Framework for Technologies Classification in Agriculture","volume":"213","author":"Moreno","year":"2024","journal-title":"Agric. Syst."},{"key":"ref_36","doi-asserted-by":"crossref","first-page":"613","DOI":"10.1016\/j.spc.2022.09.027","article-title":"Dimensions of Digital Transformation in the Context of Modern Agriculture","volume":"34","author":"Mendes","year":"2022","journal-title":"Sustain. Prod. Consum."},{"key":"ref_37","doi-asserted-by":"crossref","unstructured":"Yuan, Y., Wu, H., and Shen, Y. (2025). Achieve Sustainable Operation of Agricultural Enterprises: Improving Agribusiness Performance through Digital Transformation. Front. Sustain. Food Syst., 9.","DOI":"10.3389\/fsufs.2025.1547358"},{"key":"ref_38","doi-asserted-by":"crossref","unstructured":"Zhang, Q., Feng, X., Xu, W., and Wei, L. (2025). Digitalization\u2019s Role in Shaping Sustainable Agriculture\u2014Evidence from Chinese Provincial Panel Data Using the Baidu Index. Agriculture, 15.","DOI":"10.3390\/agriculture15121275"},{"key":"ref_39","doi-asserted-by":"crossref","unstructured":"Kunwar, S.R., Chambers, R.G., Gentry, L.F., and Serra, T. (2025). What Are the Carbon Services from Cover-Crop Adoption Worth from Farmers\u2019 Perspective?. Am. J. Agric. Econ.","DOI":"10.1111\/ajae.70005"},{"key":"ref_40","doi-asserted-by":"crossref","first-page":"821","DOI":"10.1016\/j.emj.2022.09.007","article-title":"Digital Transformation: A Review and Research Agenda","volume":"41","author":"Plekhanov","year":"2023","journal-title":"Eur. Manag. J."},{"key":"ref_41","doi-asserted-by":"crossref","first-page":"79","DOI":"10.1016\/j.jrurstud.2021.05.003","article-title":"Digital Transformation of Agriculture and Rural Areas: A Socio-Cyber-Physical System Framework to Support Responsibilisation","volume":"85","author":"Rijswijk","year":"2021","journal-title":"J. Rural Stud."},{"key":"ref_42","doi-asserted-by":"crossref","first-page":"109377","DOI":"10.1016\/j.ijpe.2024.109377","article-title":"Disentangling the Socio-Technical Impacts of Digitalization: What Changes for Shop-Floor Decision-Makers?","volume":"276","author":"Colombari","year":"2024","journal-title":"Int. J. Prod. Econ."},{"key":"ref_43","doi-asserted-by":"crossref","first-page":"109336","DOI":"10.1016\/j.ijpe.2024.109336","article-title":"Logistics 4.0\u2014Digital Transformation with Smart Connected Tracking and Tracing Devices","volume":"275","author":"Helo","year":"2024","journal-title":"Int. J. Prod. Econ."},{"key":"ref_44","doi-asserted-by":"crossref","first-page":"107166","DOI":"10.1016\/j.frl.2025.107166","article-title":"Digital Transformation, Innovation Capability, and ESG Performance","volume":"78","author":"Liu","year":"2025","journal-title":"Financ. Res. Lett."},{"key":"ref_45","doi-asserted-by":"crossref","unstructured":"Chen, C.-T., Lade, G.E., Crespi, J.M., and Keiser, D.A. (2025). Size-Based Regulation and Water Quality: Evidence from the Iowa Hog Industry. Am. J. Agric. Econ.","DOI":"10.1111\/ajae.70006"},{"key":"ref_46","doi-asserted-by":"crossref","unstructured":"Ellermann, H., Kreutter, P., and Messner, W. (2017). The Effect of Digitalization on the Labor Market. The Palgrave Handbook of Managing Continuous Business Transformation, Palgrave Macmillan.","DOI":"10.1057\/978-1-137-60228-2"},{"key":"ref_47","doi-asserted-by":"crossref","unstructured":"Liu, J., Hu, S., Jin, Y., and Weng, L. (2025). Digital Red Tape in Public Organizations: Challenges to Sustainable Digital Transformation. Sustainability, 17.","DOI":"10.3390\/su172310681"},{"key":"ref_48","doi-asserted-by":"crossref","first-page":"671","DOI":"10.1007\/s40821-021-00196-8","article-title":"Digitalization Trends and Organizational Structure: Bureaucracy, Ambidexterity or Post-Bureaucracy?","volume":"12","author":"Mustafa","year":"2022","journal-title":"Eurasian Bus. Rev."},{"key":"ref_49","doi-asserted-by":"crossref","first-page":"401","DOI":"10.1002\/smj.527","article-title":"Mutual Commitment to Support Exchange: Relation-Specific IT System as a Substitute for Managerial Hierarchy","volume":"27","author":"Kim","year":"2006","journal-title":"Strateg. Manag. J."},{"key":"ref_50","doi-asserted-by":"crossref","first-page":"47080","DOI":"10.1109\/ACCESS.2023.3274707","article-title":"A Blockchain-Based E-Commerce Reputation System Built with Verifiable Credentials","volume":"11","author":"Karacan","year":"2023","journal-title":"IEEE Access"},{"key":"ref_51","doi-asserted-by":"crossref","unstructured":"Zhang, S., Wu, C., Yan, X., Chen, Y., and Shi, H. (2025). Unverifiable Green Signals and Consumer Response in E-Commerce: Evidence from Platform-Level Data. Sustainability, 17.","DOI":"10.3390\/su17135678"},{"key":"ref_52","doi-asserted-by":"crossref","first-page":"825","DOI":"10.25300\/MISQ\/2023\/17818","article-title":"Digitization of Transaction Terms Within TCE: Strong Smart Contract as a New Mode of Transaction Governance","volume":"48","author":"Halaburda","year":"2024","journal-title":"MIS Q."},{"key":"ref_53","doi-asserted-by":"crossref","unstructured":"Pienwisetkaew, T., Wongsaichia, S., Pinyosap, B., Prasertsil, S., Poonsakpaisarn, K., and Ketkaew, C. (2023). The Behavioral Intention to Adopt Circular Economy-Based Digital Technology for Agricultural Waste Valorization. Foods, 12.","DOI":"10.3390\/foods12122341"},{"key":"ref_54","doi-asserted-by":"crossref","unstructured":"Huo, Y., Wang, S., and Miao, W. (2026). Managerial Myopia, Willingness for Proactive Risk-Taking, and Digital Transformation in Commercial Banks: Evidence from China. Int. J. Financial Stud., 14.","DOI":"10.3390\/ijfs14030056"},{"key":"ref_55","doi-asserted-by":"crossref","first-page":"21582440241304457","DOI":"10.1177\/21582440241304457","article-title":"Digital Transformation of Rural Banks: Scale Development and Validation","volume":"14","author":"Chao","year":"2024","journal-title":"SAGE Open"},{"key":"ref_56","doi-asserted-by":"crossref","first-page":"957","DOI":"10.1108\/SRJ-10-2018-0259","article-title":"Does Corporate Social Responsibility Lead to Improved Firm Performance? The Hidden Role of Financial Slack","volume":"16","author":"Lin","year":"2019","journal-title":"Soc. Responsib. J."},{"key":"ref_57","first-page":"75","article-title":"Do the Financial Slacks Improve the Performance of Agribusiness? A Mediating Role of Corporate Social Responsibility Activities","volume":"4","author":"Nawaz","year":"2022","journal-title":"J. Financ. Account. Res."},{"key":"ref_58","doi-asserted-by":"crossref","first-page":"103","DOI":"10.1006\/mare.1996.0035","article-title":"Using Management Control Systems to Achieve Alignment between Strategic Investment Decisions and Strategy","volume":"8","author":"Slagmulder","year":"1997","journal-title":"Manag. Account. Res."},{"key":"ref_59","doi-asserted-by":"crossref","first-page":"554","DOI":"10.1108\/IJPPM-11-2012-0121","article-title":"Sushil Modeling Strategic Performance Factors for Effective Strategy Execution","volume":"62","author":"Srivastava","year":"2013","journal-title":"Int. J. Product. Perform. Manag."},{"key":"ref_60","first-page":"171","article-title":"Promoting Eco-Innovations to Leverage Sustainable Development of Eco-Industry and Green Growth","volume":"2","author":"Sarkar","year":"2013","journal-title":"Eur. J. Sustain. Dev."},{"key":"ref_61","doi-asserted-by":"crossref","first-page":"106554","DOI":"10.1016\/j.frl.2024.106554","article-title":"Can Data Assets Promote Green Innovation in Enterprises?","volume":"72","author":"Zhang","year":"2025","journal-title":"Financ. Res. Lett."}],"container-title":["Systems"],"original-title":[],"language":"en","link":[{"URL":"https:\/\/www.mdpi.com\/2079-8954\/14\/4\/387\/pdf","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2026,4,4]],"date-time":"2026-04-04T04:27:54Z","timestamp":1775276874000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.mdpi.com\/2079-8954\/14\/4\/387"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2026,4,2]]},"references-count":61,"journal-issue":{"issue":"4","published-online":{"date-parts":[[2026,4]]}},"alternative-id":["systems14040387"],"URL":"https:\/\/doi.org\/10.3390\/systems14040387","relation":{},"ISSN":["2079-8954"],"issn-type":[{"value":"2079-8954","type":"electronic"}],"subject":[],"published":{"date-parts":[[2026,4,2]]}}}