Studying the Requirements and Socioeconomic Challenges of Digitalization on Sustainability: An Applied Study in the Petrochemical Industry

Integrating digitalization into industrial sectors presents significant opportunities and socioeconomic challenges, particularly in advancing sustainability goals. This study explores the digitalization requirements and socioeconomic challenges influencing sustainability within the petrochemical ind...

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Main Authors: Islam Elmaghraby, Nevien F. Khourshed, Mohamad A. Ragheb, Mahmoud H. Beshr
Format: Article
Language:English
Published: The Academic Research and Publishing UG (i. G.) (AR&P) LLC 2025-07-01
Series:SocioEconomic Challenges
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Online Access:https://armgpublishing.com/wp-content/uploads/2025/07/SEC_2_2025_2.pdf
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author Islam Elmaghraby
Nevien F. Khourshed
Mohamad A. Ragheb
Mahmoud H. Beshr
author_facet Islam Elmaghraby
Nevien F. Khourshed
Mohamad A. Ragheb
Mahmoud H. Beshr
author_sort Islam Elmaghraby
collection DOAJ
description Integrating digitalization into industrial sectors presents significant opportunities and socioeconomic challenges, particularly in advancing sustainability goals. This study explores the digitalization requirements and socioeconomic challenges influencing sustainability within the petrochemical industry –a sector pivotal to economic development and environmental impact. Key prerequisites for digital adoption are examined, including technological infrastructure, leadership commitment, and workforce readiness, while the moderating role of organizational culture is analyzed in relation to these factors. In 2024, a structured survey was administered among selected petrochemical firms in Egypt, with a specific focus on managers and technical staff. Respondents were asked to provide information regarding digital readiness, sustainability practices, encountered challenges, and organizational cultural traits. The collected data were analyzed using SPSS29 and AMOS28 software, employing descriptive statistics, factor analysis, and structural equation modeling methods. The study employs empirical data and statistical analysis to reveal that digitalization contributes positively to sustainability by optimizing resource utilization and reducing environmental footprints. However, its implementation is often constrained by socioeconomic challenges such as financial limitations, resistance to organizational change, and regulatory barriers. These challenges underscore the need for coordinated efforts between industry stakeholders and policymakers. Additionally, the results show that a strong company culture improves digital readiness, boosting sustainability results even with existing economic challenges. This research fills a gap in the literature on digital sustainability, particularly in the context of developing economies, and provides practical insights for strategic decision-making. It emphasizes the importance of integrated policies that address socioeconomic challenges while aligning digital transformation with environmental and economic objectives.
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institution Kabale University
issn 2520-6621
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publishDate 2025-07-01
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spelling doaj-art-697c687dce65426bad2f3cac8a43db882025-08-20T03:50:32ZengThe Academic Research and Publishing UG (i. G.) (AR&P) LLCSocioEconomic Challenges2520-66212520-62142025-07-0192213910.61093/sec.9(2).21-39.2025Studying the Requirements and Socioeconomic Challenges of Digitalization on Sustainability: An Applied Study in the Petrochemical IndustryIslam Elmaghraby0https://orcid.org/0009-0002-7098-6760Nevien F. Khourshed1https://orcid.org/0000-0002-7491-5778Mohamad A. Ragheb2https://orcid.org/0009-0004-7995-3046Mahmoud H. Beshr3https://orcid.org/0000-0002-3820-3861DBA Researcher, Arab Academy for Science Technology and Maritime Transport, EgyptPhD, Professor of Operations Management, Department of Marketing and International Business at College of Management and Technology, Arab Academy for Science, Technology and Maritime Transport, EgyptPhD, Dean of Cardiff Metropolitan Program, Arab Academy for Science, Technology and Maritime Transport, EgyptDr., Assistant Professor, Department of Business Information System, Arab Academy for Science, Technology, and Maritime Transport, EgyptIntegrating digitalization into industrial sectors presents significant opportunities and socioeconomic challenges, particularly in advancing sustainability goals. This study explores the digitalization requirements and socioeconomic challenges influencing sustainability within the petrochemical industry –a sector pivotal to economic development and environmental impact. Key prerequisites for digital adoption are examined, including technological infrastructure, leadership commitment, and workforce readiness, while the moderating role of organizational culture is analyzed in relation to these factors. In 2024, a structured survey was administered among selected petrochemical firms in Egypt, with a specific focus on managers and technical staff. Respondents were asked to provide information regarding digital readiness, sustainability practices, encountered challenges, and organizational cultural traits. The collected data were analyzed using SPSS29 and AMOS28 software, employing descriptive statistics, factor analysis, and structural equation modeling methods. The study employs empirical data and statistical analysis to reveal that digitalization contributes positively to sustainability by optimizing resource utilization and reducing environmental footprints. However, its implementation is often constrained by socioeconomic challenges such as financial limitations, resistance to organizational change, and regulatory barriers. These challenges underscore the need for coordinated efforts between industry stakeholders and policymakers. Additionally, the results show that a strong company culture improves digital readiness, boosting sustainability results even with existing economic challenges. This research fills a gap in the literature on digital sustainability, particularly in the context of developing economies, and provides practical insights for strategic decision-making. It emphasizes the importance of integrated policies that address socioeconomic challenges while aligning digital transformation with environmental and economic objectives.https://armgpublishing.com/wp-content/uploads/2025/07/SEC_2_2025_2.pdfdigitalizationsustainabilitysocioeconomic challengespetrochemical industryorganizational culture
spellingShingle Islam Elmaghraby
Nevien F. Khourshed
Mohamad A. Ragheb
Mahmoud H. Beshr
Studying the Requirements and Socioeconomic Challenges of Digitalization on Sustainability: An Applied Study in the Petrochemical Industry
SocioEconomic Challenges
digitalization
sustainability
socioeconomic challenges
petrochemical industry
organizational culture
title Studying the Requirements and Socioeconomic Challenges of Digitalization on Sustainability: An Applied Study in the Petrochemical Industry
title_full Studying the Requirements and Socioeconomic Challenges of Digitalization on Sustainability: An Applied Study in the Petrochemical Industry
title_fullStr Studying the Requirements and Socioeconomic Challenges of Digitalization on Sustainability: An Applied Study in the Petrochemical Industry
title_full_unstemmed Studying the Requirements and Socioeconomic Challenges of Digitalization on Sustainability: An Applied Study in the Petrochemical Industry
title_short Studying the Requirements and Socioeconomic Challenges of Digitalization on Sustainability: An Applied Study in the Petrochemical Industry
title_sort studying the requirements and socioeconomic challenges of digitalization on sustainability an applied study in the petrochemical industry
topic digitalization
sustainability
socioeconomic challenges
petrochemical industry
organizational culture
url https://armgpublishing.com/wp-content/uploads/2025/07/SEC_2_2025_2.pdf
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