Digital Transformation and Green Innovation Management in Latin America
Abstract
Latin American organizations face increasing pressure to simultaneously pursue digital transformation initiatives and environmental sustainability objectives, creating complex strategic challenges that require innovative integration approaches. This study explores how organizations across Mexico, Brazil, Colombia, Chile, and Argentina navigate the intersection of digital technologies and green innovation management through systematic desktop review analysis of academic literature, policy frameworks, and industry developments from 2020-2025. The research reveals significant regional variations in integration approaches, with Chile and Costa Rica demonstrating leadership in comprehensive renewable energy digitalization while Brazil advances agricultural sustainability through precision technologies and Mexico focuses on industrial environmental applications. Organizational analysis identifies three distinct integration patterns: Digital-Green Pioneers achieving holistic transformation across all operations, Selective Integrators targeting specific environmental functions, and Emerging Adopters beginning coordination efforts between technology and sustainability initiatives. Implementation success depends critically on executive commitment, strategic alignment frameworks, culturally-appropriate technology selection, and robust stakeholder engagement mechanisms that address local institutional contexts. However, substantial barriers persist including infrastructure deficiencies, regulatory fragmentation, financial resource constraints, and limited availability of professionals with integrated digital-environmental expertise. The findings demonstrate that sustainable competitive advantage requires systematic coordination between technological capabilities and environmental objectives, supported by institutional frameworks that recognize regional development priorities and constraints. This research contributes to emerging market sustainability theory while providing actionable insights for organizations seeking to leverage digital transformation for environmental innovation in Latin American contexts.
Keywords: Digital transformation, green innovation management, Latin America, sustainable innovation, environmental technology, emerging markets.
References
Alnafrah, I., Okunlola, O., Sinha, A., Abbas, S., & Dagestani, A. A. (2023). Unveiling the environmental efficiency puzzle: insights from global green innovations. Journal of Environmental Management, 345, 118865.
Appio, F. P., Frattini, F., Petruzzelli, A. M., & Neirotti, P. (2021). Digital transformation and innovation management: A synthesis of existing research and an agenda for future studies. Journal of Product Innovation Management, 38(1), 4-20.
Barriga Medina, H. R., Guevara, R., Campoverde, R. E., & Paredes-Aguirre, M. I. (2022). Eco-innovation and firm performance: Evidence from South America. Sustainability, 14(15), 9579.
Chien, F., Kamran, H. W., Nawaz, M. A., Thach, N. N., Long, P. D., & Baloch, Z. A. (2021). Assessing the prioritization of barriers toward green innovation: small and medium enterprises Nexus. Environment, development and sustainability, 1-31.
Dorn, F. M. (2022). Green colonialism in Latin America? Towards a new research agenda for the global energy transition. European Review of Latin American and Caribbean Studies/Revista Europea de Estudios Latinoamericanos y Del Caribe, (114), 137-146.
Gomez-Trujillo, A. M., & Gonzalez-Perez, M. A. (2022). Digital transformation as a strategy to reach sustainability. Smart and Sustainable Built Environment, 11(4), 1137-1162.
Hao, X., Chen, F., & Chen, Z. (2022). Does green innovation increase enterprise value?. Business strategy and the environment, 31(3), 1232-1247.
Herman, K. S. (2023). Green growth and innovation in the Global South: a systematic literature review. Innovation and Development, 13(1), 43-69.
Hwang, Y. K. (2023). The synergy effect through combination of the digital economy and transition to renewable energy on green economic growth: Empirical study of 18 Latin American and caribbean countries. Journal of Cleaner Production, 418, 138146.
Karlilar, S., Balcilar, M., & Emir, F. (2023). Environmental sustainability in the OECD: The power of digitalization, green innovation, renewable energy and financial development. Telecommunications Policy, 47(6), 102568.
Khanra, S., Kaur, P., Joseph, R. P., Malik, A., & Dhir, A. (2022). A resource‐based view of green innovation as a strategic firm resource: Present status and future directions. Business Strategy and the Environment, 31(4), 1395-1413.
Kumar, S., Sureka, R., Lim, W. M., Kumar Mangla, S., & Goyal, N. (2021). What do we know about business strategy and environmental research? Insights from Business Strategy and the Environment. Business Strategy and the Environment, 30(8), 3454-3469.
Lerman, L. V., Benitez, G. B., Müller, J. M., de Sousa, P. R., & Frank, A. G. (2022). Smart green supply chain management: A configurational approach to enhance green performance through digital transformation. Supply Chain Management: An International Journal, 27(7), 147-176.
Liu, X., Liu, F., & Ren, X. (2023). Firms' digitalization in manufacturing and the structure and direction of green innovation. Journal of
Melo, I. C., Queiroz, G. A., Junior, P. N. A., de Sousa, T. B., Yushimito, W. F., & Pereira, J. (2023). Sustainable digital transformation in small and medium enterprises (SMEs): A review on performance. Heliyon, 9(3).
Mhlanga, D., Denhere, V., & Moloi, T. (2022). COVID-19 and the key digital transformation lessons for higher education institutions in South Africa. Education sciences, 12(7), 464.
Shen, Z., Wang, S., Boussemart, J. P., & Hao, Y. (2022). Digital transition and green growth in Chinese agriculture. Technological Forecasting and Social Change, 181, 121742.
Tariq, G., Sun, H., Ali, I., Pasha, A. A., Khan, M. S., Rahman, M. M., ... & Shah, Q. (2022). Influence of green technology, green energy consumption, energy efficiency, trade, economic development and FDI on climate change in South Asia. Scientific reports, 12(1), 16376.
Wang, C. H., & Juo, W. J. (2021). An environmental policy of green intellectual capital: Green innovation strategy for performance sustainability. Business Strategy and the Environment, 30(7), 3241-3254.
Yoshikuni, A. C., Dwivedi, R., Dultra-de-Lima, R. G., Parisi, C., & Oyadomari, J. C. T. (2023). Role of emerging technologies in accounting information systems for achieving strategic flexibility through decision-making performance: an exploratory study based on North American and South American firms. Global Journal of Flexible Systems Management, 24(2), 199-218.
