Mohammad Ahmad Alnaimat

Type of the article: Research Article

Abstract
Digital transformation plays a crucial role in the evolution of industrial companies, serving as a key driver for boosting productivity and streamlining operational efficiency. This modern shift not only facilitates the adoption of advanced technologies but also fosters a culture of innovation and agility within organizations. Therefore, this study aims to explore the relationship between digital transformation and financial sustainability among industrial companies listed on the Amman Stock Exchange, shedding light on how these digital initiatives can lead to long-term financial health and resilience in an increasingly competitive market. Panel data were built based on the annual reports of 32 industrial companies listed on the Amman Stock Exchange from 2015 to 2023, which were chosen due to their critical role in the national economy. FEM and GMM were employed to obtain study outputs. The study concluded that the relationship between digital transformation and financial sustainability is significant and positive (Coef 0.52, P-value 0.01), meaning that digital transformation contributes significantly and positively to enhancing financial sustainability in Jordanian industrial companies. An interaction coefficient was also found between digital transformation and firm size (Coef = 0.07, P-value = 0.04), where company size is a moderating factor that strengthens the impact of this transformation on financial sustainability. Accordingly, the study recommends expanding the scope of future research to explore the factors driving digital transformation, most notably entrepreneurship and organizational innovation, given their potential role in accelerating the pace of transformation and achieving its sustainable impact.