Performance management with novel technologies : integrating sustainability performance in digital transformation

Abstract

Performance management (PM) has evolved from a static evaluation mechanism into a strategic capability for adaptability, innovation and value creation in organisations. In today’s digitally accelerated and sustainability-conscious landscape, traditional PM practices are increasingly inadequate to address the dynamic expectations placed on modern firms. The need to align real-time data, strategic foresight and human-centric considerations calls for a fundamental rethinking of how performance is managed across technological, operational and social dimensions.

This dissertation examines how novel technologies, such as artificial intelligence (AI), the internet of things (IoT) and digital twins (DT), transform PM practices and how such transformations enable the integration and realisation of sustainability performance outcomes within organisations in the context of digital transformation. Drawing from four publications, this study employs a mixed-method approach that includes a systematic literature review, a survey-based analysis and multiple case studies. The study findings reveal that these novel technologies support more agile, simulation-driven and strategically aligned decision-making processes by enhancing transparency, foresight and cross-functional coordination. These findings provide evidence that novel technologies, particularly DT (supported by AI and the IoT), can be leveraged to not only improve operational efficiency but also promote employee well-being, ergonomic safety and social sustainability, reflecting the broader principles of the contemporary industrial paradigm. By offering both theoretical and actionable contributions, this study advances the integration of technological and sustainability logics within PM, equipping firms to thrive in complex and evolving environments.