Embedding sustainability in the TOE framework: A digital-driven transformation of state-owned enterprises in the electricity sector toward achieving the SDGs

Abstract

The convergence of digital transformation and sustainability mandates creates complex yet strategically critical decision-making challenges for state-owned enterprises (SOEs) in the electricity sector, where regulatory frameworks add further layers of complexity. Existing applications of the Technology-Organization-Environment (TOE) framework have traditionally emphasized market-driven contexts and provide limited explanation of hierarchical relationships and strategic prioritization among adoption factors in highly regulated environments. This study aims to identify the determinants of digital technology adoption in Thai electricity SOEs and to develop a hierarchical model that supports sustainable adoption aligned with Environmental, Social, and Governance (ESG) objectives. The research employed thematic analysis to extract key factors, followed by Interpretive Structural Modeling (ISM) to examine inter-factor relationships, while the Matrix of Cross-Impact Multiplications Applied to Classification (MICMAC) was used to classify factors by influence and dependence. Results indicate that technological transformation together with regulatory mandates function as dominant institutional drivers, while organizational adaptability act as critical mediating mechanism in the adoption process. The hierarchical model clarifies how external sustainability and policy pressures are internalized into strategic and operational responses within SOEs, our proposed framework enhances the applicability of TOE in strictly regulated sectors and provides a practical decision-support tool for prioritizing interventions and guiding digital investment decisions. Accordingly, SOEs should employ the model as a strategic tool to prioritize interventions and guide digital investment decisions, thereby strengthening their contributions to national sustainability goals and ESG commitments.