Can digital transformation promote the green innovation quality of enterprises? Empirical evidence from China

Abstract

Digital transformation constitutes a crucial component of the digital economy and represents a microcosmic manifestation, playing a vital role in advancing enterprise sustainable development from the perspective of green innovation quality. Using the panel data of Chinese listed companies from 2011 to 2020, the study examines the impact of digital transformation on the quality of green innovation. The study finds that digital transformation significantly increases the green innovation quality of enterprises. Moreover, the positive effect of digital transformation on green innovation quality is strengthened by the executive with digital knowledge experience and in regions with high-level intellectual property protection. The study findings contribute to digitalization research and the literature on green innovation, and provide suggestions for managers and policymakers seeking to improve the quality of environmental sustainability through digital transformation in developing economies.

Integrating ESG into Corporate Strategy: Unveiling the Moderating Effect of Digital Transformation on Green Innovation through Employee Insights

“…Digital technology facilitates a more efficient and expedited exchange of information within and outside the company [58]. The application of digital technologies can effectively reduce information transmission costs, promote collaboration between companies, improve resource allocation efficiency, enhance the sustainable growth capability of companies, and inject endogenous vitality into green innovation activities [60,61]. Firstly, through digital transformation, companies apply advanced digital technologies to improve the monitoring level of supply chain integration systems, enhance the integration of specific resources in the supply chain, and respond quickly to market demand changes [62].…”