Adopting digital technology for sustainable performance: circular economy practice in the transportation sector

Abstract The transportation sector is one of the main sources of greenhouse gas emissions, exacerbating environmental pollution and climate change. This has a significant economic effect on sustainable performance (SUS). This study aims to understand how digital technology adoption (DIG) affects SUS, considering the mediating role of circular economy practice (CIR). The research surveyed 706 individuals working in small and medium-sized enterprises in the transport industry in Southern Vietnam, employing quantitative and qualitative methods for analysis. The findings reveal that CIR has a positive effect on SUS. DIG has a positive impact on CIR and SUS. Additionally, the results also confirm the positive mediating role of CIR in the effects of DIG on SUS. The research results have made certain theoretical contributions. These insights also provide practical implications for policymakers and managers in the transportation sector to foster holistic sustainable development in Vietnam.