Digital Transformation as an Enabler to Become More Efficient in Sustainability: Evidence from Five Leading Companies in the Mexican Market
Round 1
Reviewer 1 Report
1. Abstract: Need to add the results of Conclusions, practical implications and theoretical contributions
2. Introduction
a. Need to add a literature review related to "Digital Transformation as enabler to become more efficient" at least 3 literatures
b. Need to provide detailed information about the implementation of digital transformation in Mexican companies, especially communication services, retail, financial, food and beverages, and materials
c. This statement should be placed in the research method: To answer these questions, the study adopts an inductive, qualitative approach based on an examination of published company reports
d. This statement should be placed at the beginning or middle of the introduction, it is meaningless if it is placed at the end: The main DT actions that have had an impact on Sustainability were identified considering that these actions contribute to achieving the objectives of the United Nation Sustainable Development Goals (SDGs) [23]. Additionally, a radar chart was constructed to visually display the actions of these companies over the years. Besides, actions were grouped under the Business Dimensions defined by Deloitte Development LLC [24]
d. This statement does not fit at the end of the sentence in the introduction, and does not give a good meaning. It would be nice to put it deleted or elaborated in another location: Big companies etc.
3. Need to add a literature review to the sub-chapter
3. Literature Review
3.1. Digital transformation
3.2. Sustainability : include efficient
4. The discussion is very simple, does not describe the results of processing or analysis, it needs to be elaborated in detail.
5. Need to add practical implications and theoretical contributions
6. Need to add Conclusions and suggestions
Comments for author File: 
Comments.pdf
Author Response
- Abstract: Need to add the results of Conclusions, practical implications and theoretical contributions. Conclusions, practical implications and theoretical contributions were added.
- Introduction
- Need to add a literature review related to "Digital Transformation as enabler to become more efficient" at least 3 literatures.
Digital transformation is an enabler to become more efficient. In the study “Effects of digitalization on financialization: empirical evidence from European Countries” the author suggests the importance of digital transformation in the business and public sector in augmenting the depth and efficiency of financial markets [19]. The use of modern digital technology such as big data, cloud computing is extremely important to ensure the security of the energy system, especially the availability of energy [20]. But improvement of resource efficiency is only present when the digital transformation process reaches a certain level [21].
[17] Ha LT (2022) Effects of digitalization on financialization: empirical evidence from European countries. Technology in Society 68:101851. https://doi.org/10.1016/j.techsoc.2021.101851
[18] Ha LT (2022) Are digital business and digital public services a driver for better energy security? Evidence from a European sample. Environmental Science Pollution Research. https://doi.org/10.1007/s11356-021-17843-2
[19] Ha, L.T. (2022) Socioeconomic and resource efficiency impacts of digital public services. Environmental Science Pollution Research. https://doi.org/10.1007/s11356-022-21408-2
- Need to provide detailed information about the implementation of digital transformation in Mexican companies, especially communication services, retail, financial, food and beverages, and materials.
Digitization in Mexico still has a long way to go for companies, but that does not mean that there is no interest, both in Mexico and the region in general [27]. According to Forbes (2020) 81% of companies in Mexico have already started some process of digital transformation [28]. Selected companies have implemented digital transformation in different ways, some details are mentioned below. During their research, it was identified that América Móvil has purchased the following applications: In-House ATS for Applicant Tracking System in 2016, NetCracker Technology Digital Business Enablement for OSS/BSS in 2015, Cisco IronPort Cloud Email Security for Secure Email Gateways (SEGs) in 2020 and the related IT decision-makers and key stakeholders [29]. Infrastructure projects in Mexico for smart retail systems include tools through which retail consumers can easily access the retailer’s e-commerce functions from their smartphones and avoid visiting a location [30].
In Mexico there are three key digital banking trends (1) open banking initiatives, (2) improvements to banking accessibility and (3) digital payments [31]. Despite digitalization and automation are very important for Mexican food and beverage industry, the key component is data [32]. The food sector has to face specific challenges: changes in seasonal demand, increased demand for differentiated SKUs, increased regulatory or quality restrictions, and the increasingly complex production planning and its escalation to industrial production [33]. It is recognized that for materials sector digital transformation, is not only in terms of machinery and tools to work in the field, but above all in the adoption of specialized software for remote management needs of construction projects in the new working conditions [34].
[20] Mancera, D. (2022, February 15). Digitalization and New Technologies in Mexico’s Development. OneSpan. Retrieved October 20, 2022, from https://www.onespan.com/blog/digitization-and-new-technologies-mexico.
[21] Forbes, I. (2020, March 30). La realidad de la transformación digital en México. Forbes México. Retrieved October 20, 2022, from https://www.forbes.com.mx/la-realidad-de-la-transformacion-digital-en-mexico/
[22] Apps Run The World. (2022). América Móvil Software Purchases and Digital Transformation Initiatives. Apps Run The World. Retrieved October 20, 2022, from https://www.appsruntheworld.com/customers-database/customers/view/america-movil-mexico
[23] Hanna Sofía. (2022, january). End-to-End Solutions Help Spur Mexico’s Digital Transformation. mexicobusiness.news. Retrieved October 20, 2022, from https://mexicobusiness.news/tech/news/end-end-solutions-help-spur-mexicos-digital-transformation
[24] Digital Banking Trends in Mexico. (2022, June 21). CPQi. Retrieved October 20, 2022, from https://cpqi.com/digital-banking-trends-in-mexico/
[25] Preinfalk Alejandro. (2022, march). Unlocking Infinite Possibilities Through Digital Transformation. mexicobusiness.news.. Retrieved October 20, 2022, from https://mexicobusiness.news/tech/news/unlocking-infinite-possibilities-through-digital-transformation
[26] Vega, G. (2021, August 26). La transformación digital de las empresas de alimentos es vital para ser competitivos. The Food Tech. Retrieved October 20, 2022, from https://thefoodtech.com/tendencias-de-consumo/la-transformacion-digital-de-las-empresasde-alimentos-es-vital-para-ser-competitivos/
[27] BNamericas - Digitalización, el gran reto de la industria. . . (n.d.). BNamericas.com. Retrieved October 20, 2022, from https://www.bnamericas.com/es/entrevistas/digitalizacion-el-gran-reto-de-la-industria-de-la-construccion
- This statement should be placed in the research method: To answer these questions, the study adopts an inductive, qualitative approach based on an examination of published company reports.
The statement is placed in the research method.
- This statement should be placed at the beginning or middle of the introduction, it is meaningless if it is placed at the end: The main DT actions that have had an impact on Sustainability were identified considering that these actions contribute to achieving the objectives of the United Nation Sustainable Development Goals (SDGs) [23]. Additionally, a radar chart was constructed to visually display the actions of these companies over the years. Besides, actions were grouped under the Business Dimensions defined by Deloitte Development LLC [24]
The statement is placed at the beginning of the introduction.
- This statement does not fit at the end of the sentence in the introduction, and does not give a good meaning. It would be nice to put it deleted or elaborated in another location: Big companies etc.
The statement is deleted.
- Need to add a literature review to the sub-chapter
Provided format includes Section 1. Introduction followed by Section 2. Materials and methods. And then Section 3. Results. Amazingly, provided format by Sustainability webpage does not requires a separate section for Literature Review. Despite this, Compelte LR section is added.
- The discussion is very simple, does not describe the results of processing or analysis, it needs to be elaborated in detail. Discussion was elaborated.
- Need to add practical implications and theoretical contributions. Both were inclueded.
- Need to add Conclusions and suggestions. Both are included.
Reviewer 2 Report
Dear Authors,
the paper doesn’t respect any scientific standard: it looks more like an internal report on DT. No introduction, a weak literature review and no clear methodology.
Connection with sustainability is weak. You should explain the relation between DT and sustainability as it is supposed to be the core of your paper. Same for SDGs.
In table 4 you consider sustainable investments, but, for example “new store” doesn’t look like a sustainable investment, without explanations.
You should use $ or € and not local currency.
No useful findings are shown and no relevant discussion is available.
Author Response
The paper doesn’t respect any scientific standard: it looks more like an internal report on DT. No introduction, a weak literature review and no clear methodology.
This papers follows the methodology of an existing paper (Jones and Wynn, 2021).
Research Methodology: the study adopts an inductive, qualitative approach based on an examination of published company reports [22].
- Jones, P. and Wynn, M., 2021. The Leading Digital Technology Companies and Their Approach to Sustainable Development. Sustainability, 13, 6612. https://doi.org/10.3390/su13126612
Thanks to the kind comments of the Reviewers, the introduction and literature review are strengthened.
Connection with sustainability is weak. You should explain the relation between DT and sustainability as it is supposed to be the core of your paper. Same for SDGs.
In 1987, the United Nations Brundtland Commission defined sustainability as “meeting the needs of the present without compromising the ability of future generations to meet their own needs.” (United Nations, n.d.). The Sustainable Development Goals form the framework for improving the lives of populations around the world and mitigating the hazardous man-made effects of climate change. (United Nations, n.d.). Digital Transformation occurs in response to changes in digital technologies, increasing digital competition and resulting digital customer behavior (Verhoef et al, 2021).
Findings reveal that it is possible to suggest a research framework that considers digital transformation as a driver and a predecessor of sustainability. To survive the digital revolution, companies need to enhance their digital capabilities and balance their economic, environmental and social impacts [3]
- Gomez-Trujillo, A. and Gonzalez-Perez, M., 2021. Digital transformation as a strategy to reach sustainability. Smart and Sustainable Built Environment.
- United Nations. (n.d.). Sustainability. Retrieved October 19, 2022, from https://www.un.org/en/academic-impact/sustainability
- Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Qi Dong, J., Fabian, N., & Haenlein, M. (2021, January). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022
In table 4 you consider sustainable investments, but, for example “new store” doesn’t look like a sustainable investment, without explanations.
Prior to Table 4, following paragraph has been added:
To continue building the future of its operation, Walmart invests in the renovation of its existing stores, builds new stores and invests in technology. These investments contribute to the fulfillment of the SDGs as can be seen in Table A1 in Appendix A.
Table 4. was modified. Instead of “new stores” we specified the number of new stores opened and the number of stores in Mexico and in Centro America.
You should use $ or € and not local currency.
According to Mexican Financial Reporting Standards (NIF by its acronym in Spanish) specifically NIF B-15 Conversion of foreign currencies establishes the methodology for the conversion of Mexican pesos to foreign currency. This calculation is complex and must be done carefully. With the data presented in the Sustainability reports, there are not enough elements to carry out said calculation. The information is obtained from the Sustainability reports, which are informative and not standardized. The Financial Reports of the companies that are expressed in foreign currency but do not include the information that is used in this research work.
No useful findings are shown and no relevant discussion is available.
No previous research work has been carried out in the Mexican Market. Thanks to the kind comments of the Reviewers, the Findings and Discussion are improved.
Reviewer 3 Report
Please refer to the attached document
Comments for author File: Comments.pdf
Author Response
Dear Reviewer 3,
Thank you very much for your kind comments and for the time you took to make the corresponding observations. They have been very helpful to our research and with much respect and in the best possible way a section called "Caveats" was added to the manuscript. We discuss the issues of (i) endogeneity, (ii) the short sample period, and (iii) confounding variables, including the references you kindly provide. Except for the reference Anderson et al. (2022) that it was not possible to identify. But some others were cited hopefully in a proper manner.
Reviewer 4 Report
1. The authors explore digital transformation using data from 5 large companies. The authors should indicate this in the title and in the abstract. As it is incorrect to conclude about the digital transformation of an entire country based on the data of a few companies
2. In the final part of the introduction, a brief overview of the rest of the paper should be written. It is appropriate for the authors to explain the structure and logic of the remainder of the paper.
3. The reference needs improvement. The geography of cited publications should also be widened. For example, the references could include the next papers:
Guan, H., Guo, B., & Zhang, J. (2022). Study on the Impact of the Digital Economy on the Upgrading of Industrial Structures—Empirical Analysis Based on Cities in China. Sustainability, 14(18), 11378.
Nehrey, M., & Zomchak, L. (2022). Digital Technology: Emerging Issue for Agriculture. In The International Conference on Artificial Intelligence and Logistics Engineering (pp. 146-156). Springer, Cham.
Rowan, N. J., Murray, N., Qiao, Y., O'Neill, E., Clifford, E., Barceló, D., & Power, D. M. (2022). Digital transformation of peatland eco-innovations (‘Paludiculture’): Enabling a paradigm shift towards the real-time sustainable production of ‘green-friendly products and services. Science of the Total Environment, 156328.
4. It would be important that you explain the rationale for choosing the case study. So far, it is not clear why the authors focused on the top 5 companies. In addition, the authors might want to explain if and how the analysis of this case study can serve to draw conclusions about other companies as they have a larger market share.
5. It would be of utmost importance that the authors provide a sound theoretical framework for the case study and explain the objectives and contributions of their research and ensure that they properly justify how the proposal of an overall framework for digital transformation can be constructed based on one single case study.
6. The conclusion should summarize how the work advances the field from the present state of knowledge. The author should provide a clear scientific justification for this work in the conclusion section, and indicate uses and extensions if appropriate.
Author Response
- The authors explore digital transformation using data from 5 large companies. The authors should indicate this in the title and in the abstract. As it is incorrect to conclude about the digital transformation of an entire country based on the data of a few companies
New title: Digital Transformation as enabler to become more efficient in Sustainability: evidence from the five leading companies in the Mexican market
Abstract: Line 17 already stays: This study includes the top five Mexican Market companies
- In the final part of the introduction, a brief overview of the rest of the paper should be written. It is appropriate for the authors to explain the structure and logic of the remainder of the paper.
The final part of the Introduction was deleted according to Reviwer 1.
- The reference needs improvement. The geography of cited publications should also be widened. For example, the references could include the next papers.
References are included in section 3. Literature Review.
-
It would be important that you explain the rationale for choosing the case study. So far, it is not clear why the authors focused on the top 5 companies. In addition, the authors might want to explain if and how the analysis of this case study can serve to draw conclusions about other companies as they have a larger market share.
Big companies are the locomotives of the Mexican economy for several reasons: from the generation of jobs, the relationship with suppliers, the impact with customers and the responsibility that they have with society and the environment.
- It would be of utmost importance that the authors provide a sound theoretical framework for the case study and explain the objectives and contributions of their research and ensure that they properly justify how the proposal of an overall framework for digital transformation can be constructed based on one single case study. Contributions are included in discussion section.
- The conclusion should summarize how the work advances the field from the present state of knowledge. The author should provide a clear scientific justification for this work in the conclusion section, and indicate uses and extensions if appropriate. Conclusions were elaborated.
Round 2
Reviewer 2 Report
the previously expressed doubts persist
Author Response
The previously expressed doubts persist
Thank you for your kind comments, some changes were made. We hope we have corrected the observations made.
Reviewer 4 Report
The paper can be published in present form
Author Response
The paper can be published in present form
Thank you for your kind comments, some changes were made. We also hope that the paper can be published in present form.
