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Does digital transformation empower green innovation? Evidence from listed companies in heavily polluting industries in China

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  • Zhang, Wenqiu
  • Zhao, Junli
  • Li, Hao
  • Chen, Shuilin

Abstract

We investigate the impact of digital transformation on green innovation based on the data from listed companies in heavily polluting industries in China from 2010 to 2020. Our findings reveal that under the joint action of crowding-out and synergistic effects, digital transformation has a U-shaped impact on green innovation. The results withstand multiple robustness checks. The heterogeneity test shows that the digital transformation of companies in the mature stage can better promote green innovation. Our results supplement the literature on digital transformation and green innovation, and provide theoretical implications for corporate sustainability.

Suggested Citation

  • Zhang, Wenqiu & Zhao, Junli & Li, Hao & Chen, Shuilin, 2024. "Does digital transformation empower green innovation? Evidence from listed companies in heavily polluting industries in China," Finance Research Letters, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:finlet:v:66:y:2024:i:c:s1544612324007153
    DOI: 10.1016/j.frl.2024.105685
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    References listed on IDEAS

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    1. Richard F. J. Haans & Constant Pieters & Zi-Lin He, 2016. "Thinking about U: Theorizing and testing U- and inverted U-shaped relationships in strategy research," Strategic Management Journal, Wiley Blackwell, vol. 37(7), pages 1177-1195, July.
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    4. Gebauer, Heiko & Fleisch, Elgar & Lamprecht, Claudio & Wortmann, Felix, 2020. "Growth paths for overcoming the digitalization paradox," Business Horizons, Elsevier, vol. 63(3), pages 313-323.
    5. Zhang, Wenqiu & Zhao, Junli, 2023. "Digital transformation, environmental disclosure, and environmental performance: An examination based on listed companies in heavy-pollution industries in China," International Review of Economics & Finance, Elsevier, vol. 87(C), pages 505-518.
    6. El-Kassar, Abdul-Nasser & Singh, Sanjay Kumar, 2019. "Green innovation and organizational performance: The influence of big data and the moderating role of management commitment and HR practices," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 483-498.
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    Cited by:

    1. Yanfei Wu & Irina Ivashkovskaya & Galina Besstremyannaya & Chunfeng Liu, 2025. "Unlocking Green Innovation Potential Amidst Digital Transformation Challenges—The Evidence from ESG Transformation in China," Sustainability, MDPI, vol. 17(1), pages 1-30, January.

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    More about this item

    Keywords

    Digital transformation; Green innovation; U-Shaped; Firm life cycle; Sustainable development;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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