Driving Sustainable Growth through Digital Investment: Evidence from Indian Financial Services Firms
DOI:
https://doi.org/10.66635/4p8pf877Keywords:
Digital investment, Sustainable growth, Operational efficiency, Profitability, Risk management, Responsible entrepreneurship, Indian financial servicesAbstract
The digital transformation of the financial services sector is reshaping how firms achieve operational efficiency, profitability, and risk management. This study investigates the impact of digital investment on the sustainability of financial performance in Indian financial services firms using firm-level panel data from 2010 to 2023. Employing advanced panel econometric techniques, including fixed effects and dynamic GMM models, the research examines whether sustained investment in digital technologies strengthens efficiency, enhances profitability, and stabilizes financial risk. Beyond financial outcomes, the study explores how technology-driven innovation contributes to long-term sustainability, fostering resilience, transparency, and responsible business practices in a rapidly evolving market. Empirical results indicate that firms with higher digital investment achieve superior efficiency, profitability, and more stable risk profiles, emphasizing the strategic role of digitalization in promoting sustainable growth and responsible entrepreneurship. The findings offer actionable insights for managers, policymakers, and investors seeking to integrate innovation with sustainable financial practices.
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