The rapid advancement of digital technologies has reshaped organizational structures and operational processes across industries, creating new opportunities for sustainability and efficiency. In Indonesia, where electronic waste (e-waste) generation continues to rise, the integration of digital transformation into waste management practices has become increasingly critical. This study examines how digital transformation influences operational efficiency in the e- waste management sector, with sustainable innovation serving as a mediating variable. A quantitative explanatory design was adopted, utilizing survey data collected from 150 respondents representing e- waste collection, recycling, and processing organizations across Indonesia. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 4 to test the proposed hypotheses. The findings demonstrate that digital transformation significantly enhances sustainable innovation, and sustainable innovation positively affects operational efficiency. Moreover, the results confirm a partial mediation effect, indicating that digital transformation contributes to operational efficiency both directly and indirectly through sustainable innovation. These outcomes suggest that technology-driven strategies can improve not only performance but also environmental responsibility when guided by sustainability-oriented innovation. Theoretically, this study enriches the discourse on the intersection of digital transformation and sustainability by contextualizing it within the e-waste management sector of a developing economy. Practically, it offers insights for policymakers and practitioners seeking to align digital strategies with circular economy objectives. The study concludes that leveraging digital transformation is essential for fostering sustainable innovation and achieving long-term efficiency in Indonesia’s e-waste management ecosystem.
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