Digital Transformation and ESG Performance: Does MyDigital Policy Matter?
Transformasi Digital dan Prestasi ESG: Adakah Dasar MyDigital Penting?

Faculty of Business, Economics and Social Development
Universiti Malaysia Terengganu
21030 Kuala Nerus, Terengganu, Malaysia

z.aniza@umt.edu.my

Faculty of Business, Economics and Social Development
Universiti Malaysia Terengganu
21030 Kuala Nerus, Terengganu, Malaysia

sitinurain@umt.edu.my

Faculty of Business, Economics and Social Development
Universiti Malaysia Terengganu
21030 Kuala Nerus, Terengganu, Malaysia

azwadi@umt.edu.my

Centre for Transformation, Strategic and Risk Planning
Universiti Malaysia Terengganu
21030 Kuala Nerus, Terengganu, Malaysia

a.firdhauz@umt.edu.my

Abstract

This study investigates the associations between digital transformation and ESG performance, focusing on the strength of the relationship before and after the implementation of the national policy, MyDigital, as a moderating factor. Utilizing panel data from 1,399 firm-year observations covering the period 2015–2024, the study selects Malaysian listed firms as its sample. Both fixed effects and quantile regression models are employed to examine the impact of digital transformation on ESG performance, with MyDigital as the moderating variable. Findings reveal that digital transformation positively influences ESG performance in the fixed effect model (β=1.14). Quantile regression reveals that digital transformation significantly enhances ESG performance, with effects ranging from 3.60 at the q10 to 5.48 at the median and 4.48 at the q75. However, there is no evidence of a moderating effect in the fixed effects model, while the quantile regression shows a significant interaction between MyDigital and digital transformation that occurs only at higher ESG levels (β=2.44 at q75; β=3.76 at q90). This indicates that MyDigital does not significantly influence the direction of the relationship between digital transformation and ESG performance. The study provides valuable implications, among others that policymakers can refine existing policies, regulators may support lagging sectors in advancing ESG and digital initiatives, businesses can better align their digital transformation strategies with sustainability roadmaps, and investors can utilize the findings for ESG-informed investment decisions. This research contributes to the literature by examining national policy settings that serve as enablers in strengthening the digital transformation–ESG performance nexus.

Keywords

Digital transformation; ESG performance national policy; MyDigital; sustainability
https://doi.org/10.17576/pengurusan-2026-76-4

Citation

Samsudin, Z. A., Muhmad, S. N., Ali, A., & Zainul Abidin, A. F. (2026). Digital Transformation and ESG Performance: Does MyDigital Policy Matter?. Jurnal Pengurusan, 76, 47–64. https://doi.org/10.17576/pengurusan-2026-76-4

@article{samsudin2026digital,
  title={Digital Transformation and ESG Performance: Does MyDigital Policy Matter?},
  author={Samsudin, Zaira Aniza and Muhmad, Siti Nurain and Ali, Azwadi and Zainul Abidin, Ahmad Firdhauz},
  journal={Jurnal Pengurusan},
 

volume={76},
  number={},
  pages={47—64},
  year={2026},
  doi={https://doi.org/10.17576/pengurusan-2026-76-4},
  publisher={Penerbit UKM},
}

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76 (2026) 47 – 64

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