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The impact of artificial intelligence on green transformation of manufacturing enterprises: evidence from China

Author

Listed:
  • Zhengang Zhang

    (South China University of Technology)

  • Peilun Li

    (South China University of Technology)

  • Liangxiong Huang

    (South China University of Technology)

  • Yichen Kang

    (South China University of Technology)

Abstract

Artificial intelligence (AI) is emerging as a new driving force for green transformation of manufacturing enterprises. Drawing from panel data of manufacturing enterprises listed on China’s A-share market spanning from 2013 to 2019, this study finds that AI can promote green transformation of manufacturing enterprises. This finding maintains its robustness after re-measuring the core independent variable and the dependent variable, addressing endogeneity issues, excluding specific research sample, adding urban-level control variables, adding more fixed effects. The promotion effect emanates from the intermediary roles of enhanced managerial efficiency, reduced financial pressures, and the reinforcement of capabilities for green innovation. Furthermore, this study conducts heterogeneity analysis across three dimensions: corporate ownership, industry affiliation, and geographical location. The analysis discerns a heightened promotion effect when the manufacturing enterprises operate as non-state-owned enterprises, operate within labor-intensive and technology-intensive industries, or are geographically located in the eastern region. The findings offer insights to expedite the application of AI within manufacturing and propel the synergistic convergence of intelligence and sustainability in the sector.

Suggested Citation

  • Zhengang Zhang & Peilun Li & Liangxiong Huang & Yichen Kang, 2024. "The impact of artificial intelligence on green transformation of manufacturing enterprises: evidence from China," Economic Change and Restructuring, Springer, vol. 57(4), pages 1-36, August.
    • Handle: RePEc:kap:ecopln:v:57:y:2024:i:4:d:10.1007_s10644-024-09730-w
    DOI: 10.1007/s10644-024-09730-w
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    More about this item

    Keywords

    Artificial intelligence; Green transformation; Manufacturing enterprises; Managerial efficiency; Financial pressures; Green innovation;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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