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Digital transformation and green technology innovation in Chinese semiconductor industry: A fixed effects regression analysis considering media coverage, ownership type, compensation incentives, managerial myopia

Author

Listed:
  • Ren, Hesong
  • Zhou, Li
  • Wang, Nengmin
  • He, Zhengwen

Abstract

Green technology innovation (GTI) emerges as a critical pathway for reducing energy consumption, is crucial for semiconductor industry to address the issue of high energy consumption. Digital transformation (DT) offers opportunities to enhance GTI. There are mixed results of the relationships between DT and GTI, however, empirical studies focusing on the semiconductor industry are scant. Based on the practice-based view framework and the characteristics of Chinese semiconductor industry, we investigate how DT affects GTI. Utilizing data from 191 Chinese semiconductor firms during 2014–2022, we draw empirical evidence that DT has positive effects on GTI and the positive effects are more pronounced in non-state-owned enterprises than in state-owned enterprises. Interestingly, media coverage and executive compensation incentives weaken the positive effects. These findings advance the literatures of GTI and practice-based view and offer valuable managerial implications to enhancing GTI of Chinese semiconductor firms.

Suggested Citation

  • Ren, Hesong & Zhou, Li & Wang, Nengmin & He, Zhengwen, 2024. "Digital transformation and green technology innovation in Chinese semiconductor industry: A fixed effects regression analysis considering media coverage, ownership type, compensation incentives, manag," International Journal of Production Economics, Elsevier, vol. 277(C).
    • Handle: RePEc:eee:proeco:v:277:y:2024:i:c:s0925527324002573
    DOI: 10.1016/j.ijpe.2024.109400
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