THE DIGITAL SUSTAINABILITY PARADOX: HOW DIGITAL CORPORATE RESPONSIBILITY TRANSLATES TECHNOLOGICAL CAPABILITIES INTO FIRM VALUE MANAGEMENT

Abstract

The global economy is undergoing a profound shift, with digital sectors greatly surpassing traditional 
industries. Advancements in digital technology capabilities (DTC) offer potential efficiency 
improvements, yet they concurrently engender a Sustainability Paradox, since swift integration prompts 
significant issues related to ethical data utilization and privacy. This research employs a quantitative 
design to assess the mediating function of corporate digital responsibility (CDR) in the interaction 
between digital technologies capability (DTC) and firm value management (FVM). Data was gathered 
from 250 senior professionals and decision-makers in the high-stakes Financial Services and Fintech 
sector in Selangor, Malaysia. The findings offer strong empirical evidence that, although digital 
technologies capability is essential, it is a required yet inadequate condition for maximizing Firm’s value. 
Statistical analysis demonstrates a complete mediation effect, indicating that the direct association 
between digital technology capabilities and firm’s value management is non-significant (p=.552) upon 
the inclusion of corporate digital responsibilities (CDR) in the model. Technological assets generate 
strategic value solely when utilized inside an ethical governance framework. These results necessitate a 
paradigm shift from mere technological accumulation toward technological responsibility as the key 
driver of organizational worth. The study indicates that the amalgamation of ethical governance with 
advanced technology emphasizing data privacy, ethical AI, and digital inclusion is the essential catalyst 
for sustainable value management in the contemporary digital economy.