IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v44y2023i3p1383-1395.html
   My bibliography  Save this article

How has the Internet fostered the greening of enterprises in China? The moderating role of governmental transparency

Author

Listed:
  • Rongcheng Zhu
  • Qian Li

Abstract

The greening of enterprises concerning society is a matter of sustainable development of the economy. At the same time, the Internet brings technology diffusion and information transfer, which affects the greening of enterprises. Therefore, we empirically examine the impact of the Internet on greening from the perspective of green innovation and environmental violations based on the data of listed firms in China between 2010 and 2019. This paper found that the Internet effectively promotes green innovation and inhibits environmental violation, and governmental transparency positively moderates the relationship between the Internet and greening. We also conducted a series of robustness tests like a quasi‐natural experiment based on Broadband China and tested the impact of digital transformation on greening for further study. Our findings enrich the literature by showing how a macro‐level technological infrastructure such as the Internet can impact the micro‐level behaviors of a firm.

Suggested Citation

  • Rongcheng Zhu & Qian Li, 2023. "How has the Internet fostered the greening of enterprises in China? The moderating role of governmental transparency," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(3), pages 1383-1395, April.
  • Handle: RePEc:wly:mgtdec:v:44:y:2023:i:3:p:1383-1395
    DOI: 10.1002/mde.3753
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.3753
    Download Restriction: no

    File URL: https://libkey.io/10.1002/mde.3753?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Durand, Thomas, 1993. "Economy of scope, added value chain and cost dynamics: A tentative optimization model," International Journal of Production Economics, Elsevier, vol. 29(3), pages 237-247, May.
    2. Wenjie Chen & Fariha Kamal, 2016. "The impact of information and communication technology adoption on multinational firm boundary decisions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(5), pages 563-576, June.
    3. Yufeng Chen & Zhitao Zhu, 2022. "Liability Structure and Carbon Emissions Abatement: Evidence from Chinese Manufacturing Enterprises," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 83(2), pages 481-507, October.
    4. Zhu, Qinghua & Lai, Kee-hung, 2019. "Enhancing supply chain operations with extended corporate social responsibility practices by multinational enterprises: Social capital perspective from Chinese suppliers," International Journal of Production Economics, Elsevier, vol. 213(C), pages 1-12.
    5. Huub Meijers, 2014. "Does the internet generate economic growth, international trade, or both?," International Economics and Economic Policy, Springer, vol. 11(1), pages 137-163, February.
    6. Tu, Zhengge & Hu, Tianyang & Shen, Renjun, 2019. "Evaluating public participation impact on environmental protection and ecological efficiency in China: Evidence from PITI disclosure," China Economic Review, Elsevier, vol. 55(C), pages 111-123.
    7. repec:eme:aaaj00:09513579610116358 is not listed on IDEAS
    8. Li, Qian & Xue, Qiuzhi & Truong, Yann & Xiong, Jie, 2018. "MNCs' industrial linkages and environmental spillovers in emerging economies: The case of China," International Journal of Production Economics, Elsevier, vol. 196(C), pages 346-355.
    9. Daxin Sun & Saixing Zeng & Hongquan Chen & Xiaohua Meng & Zhizhou Jin, 2019. "Monitoring effect of transparency: How does government environmental disclosure facilitate corporate environmentalism?," Business Strategy and the Environment, Wiley Blackwell, vol. 28(8), pages 1594-1607, December.
    10. Gregory S. Miller, 2006. "The Press as a Watchdog for Accounting Fraud," Journal of Accounting Research, Wiley Blackwell, vol. 44(5), pages 1001-1033, December.
    11. Fan, Haichao & Peng, Yuchao & Wang, Huanhuan & Xu, Zhiwei, 2021. "Greening through finance?," Journal of Development Economics, Elsevier, vol. 152(C).
    12. Justin Tan, 2009. "Institutional Structure and Firm Social Performance in Transitional Economies: Evidence of Multinational Corporations in China," Journal of Business Ethics, Springer, vol. 86(2), pages 171-189, March.
    13. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-440, June.
    14. Matthias M M Buehlmaier & Toni M Whited, 2018. "Are Financial Constraints Priced? Evidence from Textual Analysis," The Review of Financial Studies, Society for Financial Studies, vol. 31(7), pages 2693-2728.
    15. Forés, Beatriz & Camisón, César, 2016. "Does incremental and radical innovation performance depend on different types of knowledge accumulation capabilities and organizational size?," Journal of Business Research, Elsevier, vol. 69(2), pages 831-848.
    16. Lars-Hendrik Roller & Leonard Waverman, 2001. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," American Economic Review, American Economic Association, vol. 91(4), pages 909-923, September.
    17. Garrett P. Sonnier & Leigh McAlister & Oliver J. Rutz, 2011. "A Dynamic Model of the Effect of Online Communications on Firm Sales," Marketing Science, INFORMS, vol. 30(4), pages 702-716, July.
    18. Hsiang-Lin Chih & Hsiang-Hsuan Chih & Tzu-Yin Chen, 2010. "On the Determinants of Corporate Social Responsibility: International Evidence on the Financial Industry," Journal of Business Ethics, Springer, vol. 93(1), pages 115-135, April.
    19. Feng Guo & Sherry Tao Kong & Jingyi Wang, 2016. "General patterns and regional disparity of internet finance development in China: Evidence from the Peking University Internet Finance Development Index," China Economic Journal, Taylor & Francis Journals, vol. 9(3), pages 253-271, September.
    20. Patten, Dennis M., 2002. "The relation between environmental performance and environmental disclosure: a research note," Accounting, Organizations and Society, Elsevier, vol. 27(8), pages 763-773, November.
    21. Luo, Zhi & Wan, Guanghua & Wang, Chen & Zhang, Xun, 2018. "Urban pollution and road infrastructure: A case study of China," China Economic Review, Elsevier, vol. 49(C), pages 171-183.
    22. Michael S. Drake & Darren T. Roulstone & Jacob R. Thornock, 2012. "Investor Information Demand: Evidence from Google Searches Around Earnings Announcements," Journal of Accounting Research, Wiley Blackwell, vol. 50(4), pages 1001-1040, September.
    23. Chris Forman & Nicolas van Zeebroeck, 2012. "From Wires to Partners: How the Internet Has Fostered R&D Collaborations Within Firms," Management Science, INFORMS, vol. 58(8), pages 1549-1568, August.
    24. Nina Czernich & Oliver Falck & Tobias Kretschmer & Ludger Woessmann, 2011. "Broadband Infrastructure and Economic Growth," Economic Journal, Royal Economic Society, vol. 121(552), pages 505-532, May.
    25. Şükrü Özen & Fatma Küskü, 2009. "Corporate Environmental Citizenship Variation in Developing Countries: An Institutional Framework," Journal of Business Ethics, Springer, vol. 89(2), pages 297-313, October.
    26. Yihsu Chen & Alexander Whalley, 2012. "Green Infrastructure: The Effects of Urban Rail Transit on Air Quality," American Economic Journal: Economic Policy, American Economic Association, vol. 4(1), pages 58-97, February.
    27. Koutroumpis, Pantelis, 2009. "The economic impact of broadband on growth: A simultaneous approach," Telecommunications Policy, Elsevier, vol. 33(9), pages 471-485, October.
    28. Craig Deegan & Michaela Rankin, 1996. "Do Australian companies report environmental news objectively?," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 9(2), pages 50-67, May.
    29. Chengli Shu & Kevin Z. Zhou & Yazhen Xiao & Shanxing Gao, 2016. "How Green Management Influences Product Innovation in China: The Role of Institutional Benefits," Journal of Business Ethics, Springer, vol. 133(3), pages 471-485, February.
    30. Tim Loughran & Bill Mcdonald, 2011. "When Is a Liability Not a Liability? Textual Analysis, Dictionaries, and 10‐Ks," Journal of Finance, American Finance Association, vol. 66(1), pages 35-65, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Minjie Li & Mengjun Meng & Yihui Chen, 2024. "The impact of the digital economy on green innovation: the moderating role of fiscal decentralization," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-33, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bourreau, Marc & Cambini, Carlo & Doğan, Pınar, 2012. "Access pricing, competition, and incentives to migrate from “old” to “new” technology," International Journal of Industrial Organization, Elsevier, vol. 30(6), pages 713-723.
    2. Tang, Chang & Xu, Yuanyuan & Hao, Yu & Wu, Haitao & Xue, Yan, 2021. "What is the role of telecommunications infrastructure construction in green technology innovation? A firm-level analysis for China," Energy Economics, Elsevier, vol. 103(C).
    3. Yu, Binbin, 2022. "The Impact of the Internet on Industrial Green Productivity: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    4. Paul Terna Gbahabo & Oluseye Samuel Ajuwon, 2019. "Mobile Broadband And Economic Growth In Nigeria," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 4(1), pages 65-78, March.
    5. Gómez-Barroso, José Luis & Marbán-Flores, Raquel, 2020. "Telecommunications and economic development – The 21st century: Making the evidence stronger," Telecommunications Policy, Elsevier, vol. 44(2).
    6. Ren, Siyu & Hao, Yu & Xu, Lu & Wu, Haitao & Ba, Ning, 2021. "Digitalization and energy: How does internet development affect China's energy consumption?," Energy Economics, Elsevier, vol. 98(C).
    7. Chris Florakis & Christodoulos Louca & Roni Michaely & Michael Weber, 2020. "Cybersecurity Risk," Working Papers 2020-178, Becker Friedman Institute for Research In Economics.
    8. Abdulqadir, Idris A. & Asongu, Simplice A., 2022. "The asymmetric effect of internet access on economic growth in sub-Saharan Africa," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 44-61.
    9. Bo Li & Jing Liu & Qian Liu & Muhammad Mohiuddin, 2022. "The Effects of Broadband Infrastructure on Carbon Emission Efficiency of Resource-Based Cities in China: A Quasi-Natural Experiment from the “Broadband China” Pilot Policy," IJERPH, MDPI, vol. 19(11), pages 1-27, May.
    10. Stockinger, Bastian, 2017. "The effect of broadband internet on establishments' employment growth: evidence from Germany," IAB-Discussion Paper 201719, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    11. Edquist, Harald, 2022. "The economic impact of mobile broadband speed," Telecommunications Policy, Elsevier, vol. 46(5).
    12. Jung, Juan, 2020. "Institutions and Telecommunications Investment," Information Economics and Policy, Elsevier, vol. 50(C).
    13. Jerbashian, Vahagn, 2015. "The telecommunications industry and economic growth: How the market structure matters," Economic Modelling, Elsevier, vol. 51(C), pages 515-523.
    14. Briglauer, Wolfgang & Gugler, Klaus, 2018. "Go for gigabit? First evidence on economic benefits of (ultra-)fast broadband technologies in Europe," ZEW Discussion Papers 18-020, ZEW - Leibniz Centre for European Economic Research.
    15. Jung, Juan, 2014. "Regional inequalities in the impact of broadband on productivity: Evidence from Brazil," MPRA Paper 56177, University Library of Munich, Germany.
    16. Anselm Mattes & Philipp Meinen & Ferdinand Pavel, 2012. "Goods Follow Bytes: The Impact of ICT on EU Trade," Discussion Papers of DIW Berlin 1182, DIW Berlin, German Institute for Economic Research.
    17. Marcus L. Nascimento & Kelly C. M. Gonçalves & Mario Jorge Mendonça, 2023. "Spatio-Temporal Instrumental Variables Regression with Missing Data: A Bayesian Approach," Computational Economics, Springer;Society for Computational Economics, vol. 62(1), pages 29-47, June.
    18. Elena Toader & Bogdan Narcis Firtescu & Angela Roman & Sorin Gabriel Anton, 2018. "Impact of Information and Communication Technology Infrastructure on Economic Growth: An Empirical Assessment for the EU Countries," Sustainability, MDPI, vol. 10(10), pages 1-22, October.
    19. Abdulqadir, Idris & Asongu, Simplice, 2021. "The asymmetric effect of internet access on economic growth in sub-Saharan Africa: Insight from a dynamic panel threshold regression," MPRA Paper 109904, University Library of Munich, Germany.
    20. Yu Hao & Yunxia Guo & Haitao Wu, 2022. "The role of information and communication technology on green total factor energy efficiency: Does environmental regulation work?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 403-424, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:mgtdec:v:44:y:2023:i:3:p:1383-1395. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.