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Does digital transformation promote the green innovation of China’s listed companies?

Author

Listed:
  • Peng Liang

    (Capital University of Economics and Business)

  • Xinhui Sun

    (University of International Business and Economics)

Abstract

Green innovation is essential to sustainable development and carbon neutrality. How to adopt digital technology to promote corporate green innovation (CGI) has become a widespread topic among scholars. This paper examines how digital transformation influences CGI in Chinese non-financial listed companies from 2008 to 2020. Using textual analysis to construct indicators of digital transformation, we find that CGI can be significantly enhanced by enterprise digital transformation in both quantity and quality. We also explore the underlying channels and find that enterprise digital transformation promotes CGI by improving environmental management, human capital upgrading, and resource allocation efficiency. Moreover, we investigate the moderating effects of various factors and conclude that enterprise digital transformation’s favorable effects on CGI are more pronounced in companies with good environmental responsibility, labor-intensive industries, high financial risks, intense market competition, and state-owned enterprises, as well as in companies located in regions with strong environmental regulations and a low level of digital economy development. This paper contributes to the literature on green innovation and digital transformation, as well as provides empirical evidence for enterprises in emerging market countries to promote energy saving and green transformation using digital technology.

Suggested Citation

  • Peng Liang & Xinhui Sun, 2024. "Does digital transformation promote the green innovation of China’s listed companies?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(9), pages 22199-22235, September.
    • Handle: RePEc:spr:endesu:v:26:y:2024:i:9:d:10.1007_s10668-024-05059-6
    DOI: 10.1007/s10668-024-05059-6
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