“…However, the regression coefficient of peer influence is positive and significant at the 1% level in Column (3), which indicates that peer influence still positively contributes to an enterprise's green innovation when market power is considered. It appears that the industry‐based peer effect will influence the green innovation of enterprises through the market mechanism, which extends the traditional theory of spatial spillover (Gu, 2016, 2022d; Zhu et al, 2023). The regression coefficients of peer influence in columns (1), (2), and (3) are significant, and the regression coefficient of market power in Column (3) is also significant, fulfilling all the conditions of the mediating variable (Baron & Kenny, 1986; Frazier et al, 2004; Gu, 2021).…”