RECONFIGURING BUSINESS STRATEGY THROUGH DIGITALIZATION: THE ROLE OF SOCIAL CAPITAL IN DRIVING CORPORATE SUSTAINABILITY AND EMPLOYEE BEHAVIOR

Abstract

This study develops a theoretical framework to explain how digitalization reconfigures business strategy and enables corporate sustainability through the mobilization of social capital and the transformation of employee behavior. Drawing on the intersections of strategic management, sustainability, and organizational behavior, the paper conceptualizes digitalization not merely as a technological upgrade but as a strategic enabler that reshapes value creation processes. It argues that social capital—embedded in networks, trust, and shared norms—acts as a critical mediating mechanism through which digitalized strategies influence sustainability outcomes. Furthermore, the study highlights the microfoundations of strategy by examining how employee behavior, including adaptability, collaboration, and pro-sustainability engagement, is shaped within digitally enabled environments. By integrating macro-level strategic shifts with micro-level behavioral dynamics, the framework offers a comprehensive perspective on achieving sustainable competitive advantage. The paper contributes to theory by bridging gaps between digital transformation and sustainability literature while incorporating social capital as a strategic resource. It also provides practical insights for managers seeking to align digital initiatives with sustainability goals through fostering strong social networks and positive employee behaviors.