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How ESG Contribute to the High-Quality Development of State-Owned Enterprise in China: A Multi-Stage fsQCA Method

Author

Listed:
  • Guangfan Sun

    (School of Business, Renmin University of China, Beijing 100872, China
    These authors contributed equally to this work.)

  • Changwei Guo

    (School of Business, Renmin University of China, Beijing 100872, China)

  • Junchen Ye

    (School of Business, Renmin University of China, Beijing 100872, China
    These authors contributed equally to this work.)

  • Chaoran Ji

    (School of Finance, Jilin University of Finance and Economics, Changchun 130117, China
    These authors contributed equally to this work.)

  • Nuo Xu

    (School of Literature and Law, Zhengzhou Technology and Business University, Zhengzhou 451400, China)

  • Hanqi Li

    (Department of Geography & Anthropology, Louisiana State University, Baton Rouge, LA 70803, USA
    School of Resource and Environmental Sciences, Wuhan University, Wuhan 430079, China)

Abstract

The purpose of this study is to explore what configurations of dimensions corresponding to environmental, social responsibility, governance (ESG) and firm contextual factors can lead to the high-quality development of state-owned enterprises (SOEs). A configuration analysis framework with six conditions including environmental, social responsibility, and governance (ESG), innovation intensity, capital structure, and firm size was constructed. Moreover, the multi-stage qualitative comparative analysis (QCA) approach was conducted on a sample of 692 annual observations of SOEs from 2017 to 2019. Findings suggested that three equifinal patterns can produce the high-quality development of SOEs, which are resource and capability prominent pattern, sustainability driven pattern, responsibility and growth balanced pattern, respectively. Each pattern is a conjunctural combination of different ESG and firm conditions. The number of resource and capability prominent pattern decreased in the third year, while the proportion of sustainability driven pattern increased, in which the environmental dimension played a core role rather than the social dimension. Different ESG dimensions and firm conditions have both complementary and substitutive relationships, but firm size is a common condition in all configurations. This study provided a holistic empirical explanation of how ESG leads to sustainability issues in SOEs.

Suggested Citation

  • Guangfan Sun & Changwei Guo & Junchen Ye & Chaoran Ji & Nuo Xu & Hanqi Li, 2022. "How ESG Contribute to the High-Quality Development of State-Owned Enterprise in China: A Multi-Stage fsQCA Method," Sustainability, MDPI, vol. 14(23), pages 1-18, November.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:23:p:15993-:d:989132
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