Impact of ArcelorMittal’s Sustainability and Digitalization Initiatives on Environmental Performance
DOI:
https://doi.org/10.55677/GJEFR/04-2025-Vol02E5Keywords:
sustainability, digitalization, innovation, environmental performance, steel industryAbstract
This study examines the impact of digitalization and sustainability initiatives on environmental efficiency performance at ArcelorMittal Temirtau, a steel manufacturing company in Kazakhstan. Using an explanatory case study design, the research applies Innovation Diffusion Theory (IDT), Resource-Based View (RBV), and Institutional Theory. Data was collected through a structured questionnaire from 123 employees with at least three years of relevant experience. Statistical analysis, including SEM, CFA, and correlation analysis, was conducted using SPSS and AMOS.
Findings indicate that sustainability efforts, particularly collaboration with external stakeholders, are well-received, while employee training needs improvement. Digital transformation enhances production efficiency, decision-making, and waste management, yet training gaps persist. Hypothesis testing reveals that firm capabilities do not significantly benefit from digitalization alone, and institutional pressure does not moderate its environmental impact. However, sustainability efforts, digitalization, and R&D investments contribute positively to environmental outcomes, with internal resources acting as a mediator.
The study recommends structured employee training, AI-powered analytics, blockchain-enabled supply chains, and digital twin technologies for optimizing sustainability and operational efficiency. Future research should explore long-term sustainability impacts and industry-specific regulatory responses. The findings provide valuable insights for companies and policymakers aiming to enhance sustainability through digital innovation.
References
1. Abdullah, M.I., Sarfraz, M., Arif, A., Azam, A. (2018). An extension of the theory of planned behavior towards brand equity and premium price. Polish J. Manag. Stud, 18, 20–32.
2. Adams, C. A., Muir, S., & Hoque, Z. (2016). Measurement of sustainability performance in the public sector. Sustainability Accounting, Management and Policy Journal, 7(4), 425-455.
3. Adhikari, N., & Khanam, S. (2024). Toward Sustainable Production: Emerging Trends in Iron and Steel Making. ChemBioEng Reviews. https://doi.org/10.1002/cben.202300055
4. Agazu, B. G., & Kero, C. A. (2024). Innovation strategy and firm competitiveness: a systematic literature review. Journal of Innovation and Entrepreneurship, 13, 1–17. https://doi.org/10.1186/s13731-024-00381-9
5. Ajaz, A.; Shenbei, Z.; Sarfraz, M. (2020). Delineating the influence of boardroom gender diversity on corporate social responsibility, financial performance, and reputation. Logforum, 16, 61–74.
6. Akin, O., Matthew, F., & Comfort, D. (2014). The impact and challenges of cloud computing adoption on public universities in Southwestern Nigeria. International Journal of Advanced Computer Science and Applications, IJACSA, 5(8), 17.
7. Al-Samarraie, H., & Saeed, N. (2018). A systematic review of cloud computing tools for collaborative learning: Opportunities and challenges to the blended learning environment. Comput. Educ. 124, 77–91. https://doi.org/10.1016/j.compedu.2018.05.016.
8. Ananthapadmanaban, D. (2023). Challenges and Innovative Ideas to Improve Steelmaking in India. International Journal of Industrial and Manufacturing Systems Engineering. https://doi.org/10.11648/j.ijimse.20230801.11
9. Anderson, P., Taylor, R., & Wilson, J. (2023). Cybersecurity and Digital Transformation in Steel Manufacturing. Journal of Industrial Innovation, 15(3), 45-62.
10. Andreotti, M., Brondi, C., Zevenhoven, R., Hettinger, A. L., Malfa, E., Trevisan, C., Peters, K., Snaet, D., & Ballabio, A. (2023). SDGs in the EU Steel Sector: A Critical Review of Sustainability Initiatives and Approaches. Sustainability, 15(9), 7521. https://doi.org/10.3390/su15097521
11. ArcelorMittal Annual Report, 2023
12. Ashrafi, A., Zare Ravasan, A., Trkman, P., & Afshari, S. (2019). The role of business analytics capabilities in bolstering firms’ agility and performance. Int. J. Inf. Manag., 47, 1–15. [CrossRef]
13. Azanaw, G. M. (2025). Revolutionary Steel Structures: A Comprehensive Review of Current Trends and Future Directions. International Journal of Emerging Science and Engineering. https://doi.org/10.35940/ijese.b1322.13020125
14. Bag, S., Wood, L. C., Gupta, S., & Luo, Z. (2021). Big data analytics as an operational excellence approach to enhance sustainable supply chain performance. Resources, Conservation and Recycling, 167, 105274.
15. Bansal, P., & Roth, K. (2000). Why companies go green: A model of ecological responsiveness. Academy of Management Journal, 43(4), 717-736.
16. Baranowski, M. (Ed.) Badania—Rozwój-Innowacje. In Wybrane Zagadnienia; Narodowe Centrum Bada ´n i Rozwoju: Warsaw, Poland, 2017; p. 7
17. Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.
18. Baryannis, G., Validi, S., Dani, S., & Antoniou, G. (2019). Supply chain risk management and artificial intelligence: State of the art and future research directions. International Journal of Production Research, 57(7), 2179-2202.
19. Blatter, J., & Haverland, M. (2012). Designing case studies: explanatory approaches research. Palgrave Macmillan. http://ci.nii.ac.jp/ncid/BB09750088
20. Bocken, N. M., Short, S. W., Rana, P., & Evans, S. (2014). A literature and practice review to develop sustainable business model archetypes. Journal of Cleaner Production, 65, 42-56.
21. Bonnet, D., & Westerman, G. (2021). The new elements of digital transformation. MIT Sloan Management Review, 62(2), 82–89.
22. Branca, T. A., Fornai, B., Colla, V., Murri, M. M., Streppa, E., & Schröder, A. (2020). The Challenge of Digitalization in the Steel Sector. 10(2), 288. https://doi.org/10.3390/MET10020288
23. Cai, Y., & Li, X. (2023). The role of R&D investment in digital transformation and sustainability. Sustainability, 15(2), 456-472.
24. Chalaris, M., Gkika, D. A., Tolkou, A. K., & Kyzas, G. Z. (2023). Advancements and sustainable strategies for the treatment and management of wastewaters from metallurgical industries: an overview. Environmental Science and Pollution Research. https://doi.org/10.1007/s11356-023-30891-0
25. Chen, J., Wang, Y., & Zhao, X. (2021). Digitalization and environmental performance: The role of smart technologies. Journal of Cleaner Production, 310, 127618.
26. Chien, F., & Chau, K. Y., Ady, S. U., Zhang, Y., Tran, Q. H., Talla, M. (2021). Does the combining effects of energy and consideration of financial development lead to environmental burden: social perspective of energy finance? Environmental Science and Pollution Research, 28:40957–40970
27. Diez, J., Tomé-Torquemada, S., Vicente, A., Reyes, J., & Orcajo, G. A. (2023). Decarbonization Pathways, Strategies, and Use Cases to Achieve Net-Zero CO2 Emissions in the Steelmaking Industry. Energies. https://doi.org/10.3390/en16217360
28. DiMaggio, P. J., & Powell, W. W. (1983). The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields. American Sociological Review, 48(2), 147-160.
29. Dubey, R., Gunasekaran, A., Childe, S. J., & Papadopoulos, T. (2021). Firm capabilities and environmental performance: A resource-based perspective. Business Strategy and the Environment, 30(4), 1762-1776.
30. El-Kassar, A. N., & Singh, S. K. (2019). Green innovation and environmental performance: The role of digital technologies. Journal of Business Research, 105, 110-120.
31. Fernandez, J. L., Junquera, B., & Ordiz, M. (2017). Organizational culture and human resources in the environmental issue: A review of the literature. International Journal of Human Resource Management, 18(4), 692-707.
32. Frank, A. G., Dalenogare, L. S., & Ayala, N. F. (2019). Industry 4.0 technologies: Implementation patterns in manufacturing companies. International Journal of Production Economics, 210, 15-26.
33. Gajdzik, B. (2014). Autonomous and professional maintenance in metallurgical enterprises as activities within Total Productive Maintenance. Metalurgija, 53, 269–272.
34. Gajdzik, B., & Slaska, P. (2020). Scenarios of machine operation and maintenance in the cyber-physical production systems in Industry 4.0. Gospod. Mater. Logistyka, 2–8.
35. Gajdzik, B., & Wolniak, R. (2021). Digitalisation and Innovation in the Steel Industry in Poland—Selected Tools of ICT in an Analysis of Statistical Data and a Case Study. Energies, 14, 3034. https://doi.org/10.3390/en14113034
36. Gajdzik, B., & Wolniak, R. (2021). Digitalisation and Innovation in the Steel Industry in Poland—Selected Tools of ICT in an Analysis of Statistical Data and a Case Study. Energies, 14(11), 3034. https://doi.org/10.3390/EN14113034
37. Geissdoerfer, M., Savaget, P., Bocken, N. M., & Hultink, E. J. (2018). The circular economy–A new sustainability paradigm? Journal of Cleaner Production, 143, 757-768.
38. Ghobakhloo, M. (2020). Industry 4.0, digital transformation, and firm capabilities. Technological Forecasting and Social Change, 151, 119791.
39. Grabowska, S., & Saniuk, S. (2022). Development of Business Models in the Fourth Industrial Revolution: Conditions in the Context of Empirical Research on Worldwide Scope Companies Located in Poland. J. Open Innov. Technol. Mark. Complex, 8, 86. https://doi.org/10.3390/joitmc8020086
40. Hakanen, E. (2015). Intelligent materials and structural holes as enablers for new business models in steel industry networks. https://aaltodoc.aalto.fi:443/handle/123456789/18114
41. Herzog, K., Winter, G., Kurka, G., Ankermann, K., Binder, R., Ringhofer, M., Maierhofer, A., &
42. Flick, A. (2017). The Digitalization of Steel Production. 162(11), 504–513. https://doi.org/10.1007/S00501-017-0673-9
43. Hilkenmeier, F., Fechtelpeter, C., Decius, J. (2021). How to foster innovation in SMEs: Evidence of the effectiveness of a project-based technology transfer approach. J. Technol. Transf., 1–29.
44. Hoang, P., & Ho, G. N. N. (2024). Comparative Systematic Literature Review on Digital Transformation and Sustainability. Practice, Progress, and Proficiency in Sustainability, 175–204. https://doi.org/10.4018/979-8-3693-2827-9.ch006
45. Jin, L., Park, S., & Kim, H. (2021). Smart Manufacturing and Industry 4.0 in the Steel Industry. Steel Technology Review, 18(2), 112-129.
46. Johnson, M., & Lee, D. (2023). Green Steel: Sustainability and Innovation in Modern Steelmaking. Environmental Engineering Journal, 26(4), 88-104.
47. Kamble, S. S., Gunasekaran, A., & Dhone, N. C. (2018). Industry 4.0 and lean manufacturing practices for sustainable organizational performance in Indian manufacturing companies. Journal of Cleaner Production, 199, 120-136.
48. Kamble, S. S., Gunasekaran, A., & Gawankar, S. A. (2020). Achieving sustainability through digital transformation: The mediating role of firm capabilities. Sustainable Production and Consumption, 24, 77-87.
49. Kiani, M.N., Mustafa, S.H., Ahmad, M. (2019). Does innovation capabilities affect the new service innovation success among Pakistani cellular companies? Asia Pacific J. Innov. Entrep, 13, 2–16.
50. Kumar, V., Gupta, S., & Sharma, T. (2023). Predictive Maintenance in Steel Manufacturing Using AI. International Journal of Engineering and Production, 30(1), 55-73.
51. Li, W., Zhang, J., & Xu, F. (2021). Institutional pressure and corporate sustainability performance. Corporate Social Responsibility and Environmental Management, 28(6), 1698-1712.
52. Lo, S. M., & Shiah, P. L. (2021). Green supply chain management and sustainability performance. Journal of Business Ethics, 169(2), 321-340.
53. Lozano, R. (2015). A holistic perspective on corporate sustainability drivers. Corporate Social Responsibility and Environmental Management, 22(1), 32-44.
54. Martinez, S., Mariño, A., Sanchez, S., et al., (2021) A Digital Twin Demonstrator to enable flexible manufacturing with robotics: a process supervision case study. Production & Manufacturing Research, 9:1, 140-156, DOI: 10.1080/21693277.2021.1964405
55. Mi´skiewic, R., & Wolniak, R. (2020). Practical Application of the Industry 4.0 Concept in a Steel Company. Sustainability, 12, 5776; doi:10.3390/su12145776
56. Miller, J. (2022). Digital Twins and Their Role in Industrial Optimization. Manufacturing Science and Technology, 22(3), 102-118.
57. Müller, J. M., Buliga, O., & Voigt, K. I. (2018). Fortune favors the prepared: How SMEs approach business model innovations in Industry 4.0. Technological Forecasting and Social Change, 132, 2-17.
58. Nadkarni, S., & Prügl, R. (2021). Digital transformation: A review, synthesis and opportunities for future research. Management Review Quarterly, 71(2), 233–341.
59. Ostmeier, E., & Strobel, M. (2022). Building skills in the context of digital transformation: How industry digital maturity drives proactive skill development. Journal of Business Research, (139) 718–730.
60. Palmié, M., Aebersold, A., Oghazi, P., Pashkevich, N., & Gassmann, O. (2024). Digital‐sustainable business models: Definition, systematic literature review, integrative framework and research agenda from a strategic management perspective. International Journal of Management Reviews. https://doi.org/10.1111/ijmr.12380
61. Parida, V., Rönnberg Sjödin, D., & Reim, W. (2019). Reviewing literature on digitalization, business model innovation, and sustainable industry: past achievements and future promises. Sustainability, 11(2), 391. https://doi.org/10.3390/SU11020391
62. Parida, V., Sjödin, D., & Reim, W. (2022). Digital transformation and firm capabilities: A strategic approach. Journal of Strategy and Management, 15(1), 1-19.
63. Parviainen, P., Tihinen, M., Kaari, J., & Teppola, S. (2017). Tackling the digitalization challenge: How to benefit from digitalization in practice. International Journal of Information Systems and Project Management, 5(1), 63–77.
64. Paulraj, A. (2022). Corporate sustainability and firm performance: The role of green strategies. International Journal of Production Economics, 243, 108370.
65. Porter, M. E., & van der Linde, C. (1995). Toward a new conception of the environment-competitiveness relationship. Journal of Economic Perspectives, 9(4), 97-118.
66. Qian, Y., Li, Y., Yao, Y., Yu, T., & Hu, H. (2024). Greenhouse gas control in steel manufacturing: inventory, assurance, and strategic reduction review. Carbon Research. https://doi.org/10.1007/s44246-024-00118-z
67. Ray, D. C. (2023). Single-Case Research Design (pp. 276-C10P78). Oxford University Press. https://doi.org/10.1093/oso/9780197650134.003.0010
68. Reis, J., Amorim, M., Melão, N., & Matos, P. (2021). Digital transformation: A literature review and guidelines for future research. Computers in Industry, 127, 103412.
69. Rogers, E. M. (1962). Diffusion of Innovations. Free Press.
70. Roos, G. (2024). An Overview of the Arguments in Literature, For and Against the Use of Green Hydrogen for the Production of Direct Reduced Iron. https://doi.org/10.20944/preprints202405.1582.v1
71. Sarfraz, M., Ivascu, L., Abdullah, M.I., Ozturk, I., Tariq, J. (2022). Exploring a Pathway to Sustainable Performance in Manufacturing Firms: The Interplay between Innovation Capabilities, Green Process, Product Innovations and Digital Leadership. Sustainability, 14, 5945. https://doi.org/10.3390/su14105945
72. Schuh, G., Anderl, R., Gausemeier, J., ten Hompel, M., & Wahlster, W. (2020). Industrie 4.0 Maturity Index. Managing the Digital Transformation of Companies. Acatech Study.
73. Smith, R., & Brown, L. (2022). Automation and Digitalization in Heavy Industry: The Case of ArcelorMittal. Industrial Economics and Innovation, 19(1), 78-94.
74. Stock, T., & Seliger, G. (2016). Opportunities of Sustainable Manufacturing in Industry 4.0. Procedia CIRP, 536 – 541.
75. Tang, X., Liu, S., Wang, Y., Wan, Y., & Nubea, M. D. (2025). Carbon emission reduction in China’s iron and steel industry through technological innovation: a quadrilateral evolutionary game analysis under government subsidies. Frontiers in Environmental Science, 12. https://doi.org/10.3389/fenvs.2024.1491608
76. Tizroo, A., Esmaeili, A., Khaksar, E., Šaparauskas, J., & Mozaffari, M. M. (2017). Proposing an agile strategy for a steel industry supply chain through the integration of balance scorecard and Interpretive Structural Modeling. Journal of Business Economics and Management, 18(2), 288–308. https://doi.org/10.3846/16111699.2017.1279683
77. Tortorella, G. L., Giglio, R., & van Dun, D. H. (2021). Industry 4.0 adoption as a moderator of the impact of lean production practices on operational performance improvement. International Journal of Operations & Production Management, 41(1), 1-23.
78. Tseng, C. H., Chang, K. H., Chen, H. (2019). Strategic Orientation, Environmental Innovation Capability, and Environmental Sustainability Performance: The Case of Taiwanese Suppliers. Sustainability, 11, 1127.
79. Van Veldhoven, Z., & Vanthienen, J. (2021). Digital transformation as an interaction-driven perspective between business, society, and technology. Electronic Markets, 1–16.
80. Vaz, T. R., Alves, N. R., Modesto, P. H. M., & Guarieiro, L. L. N. (2023). Recent advances and initiatives in the integration of environmental, social and governance (esg) principles in the steel industry: a brief overview. https://doi.org/10.5151/siintec2023-306167
81. Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Qi Dong, J., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122(4), 889–901.
82. Vial, G. (2019). Understanding digital transformation: A review and a research agenda. Journal of Strategic Information Systems, 28(2), 118–144.
83. Wang, J., Liu, Y., & Zhang, H. (2020). Digital technologies and corporate environmental performance: An empirical investigation. Technovation, 94-95, 102102.
84. Xu, Y., Wang, X., & Li, C. (2020). Big Data and AI in Steel Manufacturing. Journal of Smart Manufacturing, 14(2), 34-50.
85. Yuan, Y., Na, H., Chen, C., Qiu, Z., Sun, J., Zhang, L., Du, T., & Yang, Y. (2024). Status, challenges, and prospects of energy efficiency improvement methods in steel production: A multi-perspective review. Energy, 304, 132047. https://doi.org/10.1016/j.energy.2024.132047
86. Zhang, K., Thompson, B., & Green, P. (2021). Energy Optimization in Steel Production Through AI. Sustainable Industrial Processes, 25(1), 65-81.
87. Zhong, R.Y., Xu, X., Klotz, E., Newman, S.T. (2017). Intelligent Manufacturing in the Context of Industry 4.0: A review. Engineering, 3, 613–630.
88. Zhou, K.; Liu, T.; Zhou, L. Industry 4.0: Towards future industrial opportunities and challenges. In Proceedings of the IEEE 2015 12th International Conferenceon Fuzzy Systemsand Knowledge Discovery (FSKD), Zhangjiajie, China, 15–17 August 2015; pp. 2147–2152.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Global Journal of Economic and Finance Research
This work is licensed under a Creative Commons Attribution 4.0 International License.
