THE SYNERGY OF DIGITAL TRANSFORMATION AND CSR IN FORMING COMPETITIVE ADVANTAGE IN THE RETAIL SECTOR

Abstract

The article focuses on explaining and empirically testing the synergy between digital transformation and corporate social responsibility as a source of sustainable competitive advantage for Ukraine’s retail enterprises. The theoretical foundation combines the dynamic capabilities approach with the concept of creating shared value, enabling us to interpret investments in data, automation, omnichannel, and green/ethical practices as complementary rather than parallel trajectories of development. The study aims to build and verify an integrated model “DT×CSR → CA,” accounting for mediators (brand trust, digital customer experience) and moderators (market turbulence, network scale), and to develop a diagnostic synergy index for managerial auditing. Methodologically, a quasi-experimental, multi-source design is employed: a manager survey captures digital maturity and CSR/ESG practices; a customer survey measures trust and the quality of the digital experience; internal KPIs record outcomes (margin, retention, inventory turns, ROA/ROIC). The pilot, plausibly realistic dataset covers about 30 retail networks (≈220 manager observations and ≈600 customer responses). Hypotheses are tested via hierarchical regression with HC3 robust errors and structural modeling with bootstrap estimation of indirect effects; predictors are mean-centered, and multicollinearity diagnostics (VIF) remain within acceptable limits. The estimates show a statistically and managerially significant interaction effect “DT×CSR” on the integrated competitive advantage indicator: adding the interaction term increases the model’s explanatory power by roughly 0.12 R² points, while the standardized coefficients for digital maturity and CSR remain positive and significant. Mediation analysis confirms that part of the effect of digital maturity operates through improvements in the digital customer experience (indirect effect ≈0.09), whereas CSR strengthens outcomes via increased brand trust (≈0.08). The interpretation aligns with complementarity: technology investments without an ethical and ecological frame under-deliver, while CSR projects without data and automation remain weakly measurable and slow in economic payback.