Digital Energy Transformation and Decarbonization Performance for Sustainable Development: The Mediating Role of Energy Transition Capabilities

Abstract

In the era of global energy transition, achieving decarbonization performance (DP) has become a strategic imperative for energy-intensive industries. While digital energy transformation (DET) is widely recognized as a key enabler of low-carbon transitions, its specific influence on DP, particularly through the mediating roles of renewable integration capability (RIC), energy efficiency capability (EEC), and carbon reduction capability (CRC), remains underexplored. Drawing on the socio-technical systems theory (STST), this study examines how DET impacts DP by conceptualizing RIC, EEC, and CRC as mediating capabilities. A quantitative research approach was employed, utilizing survey data collected from 268 managers in Jordan’s energy and industrial sectors. Data were analyzed using structural equation modeling (SEM-AMOS). The results indicate that DET positively affects RIC, EEC, and CRC, and also exerts a direct positive effect on DP. Furthermore, these three capabilities partially mediate the relationship between DET and DP, suggesting that digital technologies accelerate decarbonization outcomes by strengthening firms’ transition-related capabilities. This study extends STST by validating the mediating roles of energy transition capabilities in the relationship between DET and DP. From a practical standpoint, the findings provide actionable insights for policymakers and firms aiming to enhance low-carbon performance through digital energy systems and transition-oriented strategies.