Abstract:Enterprises are important subjects in the transformation of national green development, while financial support is an important thrust to promote the fulfillment of environmental responsibility. In the dual context of building a digital inclusive financial system and green transformation of corporate production, this paper explores the impact of digital inclusive finance on corporate ESG performance and its mechanism of action through theoretical and empirical analyses using data of Chinese A-share listed ente… Show more
“…There is an interactive effect between the digitalization of enterprises and ESG performance, and the marginal effect of the digitalization of enterprises on ESG performance is more obvious, which is relatively advantageous in the mutual promotion relationship between the two. The innovative development and application of the new generation of digital information technology represented by "artificial intelligence," "blockchain," "cloud computing," and "big data" have provided effective technical means to enhance the ESG practice capability of enterprises and become an important technical force to promote the development of ESG (Li & Pang, 2023;Moro-Visconti, 2022;Ren et al, 2023).…”
There is growing interest in the relationship between digitalization and environmental, social, and governance (ESG) performance, but existing research focuses on the one-way relationship and ignores the two-way mechanism. Based on a sample of 3335 listed companies in China in 2020, this study adopts a spatial simultaneous equation model to investigate the bidirectional mechanism between companies’ digitalization and ESG performance. The results show that digitalization and ESG performance have a significant positive two-way mechanism; digitalization enhances ESG performance, while ESG performance promotes digitalization. The results also indicate a significant positive intra-industry spillover effect for both digitization and ESG performance. Further research shows that the relationship between digitization and ESG performance does not differ depending on the definition of spatial weights, however, the spillover effects do differ depending on the definition of spatial weights.
“…There is an interactive effect between the digitalization of enterprises and ESG performance, and the marginal effect of the digitalization of enterprises on ESG performance is more obvious, which is relatively advantageous in the mutual promotion relationship between the two. The innovative development and application of the new generation of digital information technology represented by "artificial intelligence," "blockchain," "cloud computing," and "big data" have provided effective technical means to enhance the ESG practice capability of enterprises and become an important technical force to promote the development of ESG (Li & Pang, 2023;Moro-Visconti, 2022;Ren et al, 2023).…”
There is growing interest in the relationship between digitalization and environmental, social, and governance (ESG) performance, but existing research focuses on the one-way relationship and ignores the two-way mechanism. Based on a sample of 3335 listed companies in China in 2020, this study adopts a spatial simultaneous equation model to investigate the bidirectional mechanism between companies’ digitalization and ESG performance. The results show that digitalization and ESG performance have a significant positive two-way mechanism; digitalization enhances ESG performance, while ESG performance promotes digitalization. The results also indicate a significant positive intra-industry spillover effect for both digitization and ESG performance. Further research shows that the relationship between digitization and ESG performance does not differ depending on the definition of spatial weights, however, the spillover effects do differ depending on the definition of spatial weights.
“…The operational environment significantly impacts the organizational ethos of a company. Before this investigation, most research examining the long-term relationship between corporate culture and performance [194][195][196][197][198] primarily ignored the factors that interact with culture.…”
The Chinese manufacturing industry faces many challenges to sustainable development. This study examines how transformational leadership, corporate culture, and digital transformation affect Chinese manufacturing organizations’ sustainability. It will also examine the moderating role of environmental dynamism and the mediating effect of innovation capabilities. A self-administered survey was distributed to 350 manufacturing companies’ owners, managers, leaders, and employees, etc. Participants were selected via convenient sampling. This data collection effort validated findings and empirically tested theories. Smart PLS structural equation modelling (PLS-SEM), quantitative research, and cross-research are used in this study. The findings suggest that corporate culture, transformational leadership, and digital transformation significantly affect organizations’ sustainability. Innovation capability does not affect the relationship between corporate culture and sustainability. However, it mediates the relationship between transformational leadership, digital transformation, and business sustainability. Innovation capabilities and business sustainability performance are moderated by environmental dynamism. This study contributes to sustainable corporate performance theory by showing managers how transformational leadership, digital transformation, and corporate culture can help manufacturing companies grow indefinitely. The findings have major implications for China, a highly industrialized nation. This study could benefit regulatory authorities, academic institutions, industry, government agencies, and researchers.
“…Compared with the literature [ 21 , 52 ], the impact of digital transformation on ESG performance is empirically examined from the perspective of manufacturing SOEs. Compared with the literature [ 2 , 19 , 20 ], different mechanisms of digital transformation affecting ESG performance are discussed based on the dynamic capability theory and institutional environment theory. Therefore, this study has important theoretical and practical implications, as follows.…”
Section: Discussionmentioning
confidence: 99%
“…The UN 2030 Agenda highlights the potential of digital technologies to improve sustainable development performance [ 17 ], and there are also studies suggesting that digitalization may have a positive impact on ESG. However, most of the current research on the mechanisms by which digital transformation affects ESG focuses on internal control [ 18 ], green innovation [ 19 , 20 ], and financing constraints [ 2 ], which is not yet sufficiently comprehensive and in-depth [ 21 ].…”
Section: Introduction and Literature Reviewmentioning
Against the background of sustainable development policies, the ESG performance of Chinese manufacturing enterprises is still generally poor. As the leading enterprises in the manufacturing industry, state-owned enterprises should take the lead in responding to the national call for sustainable development and actively explore the path to improve their ESG performance. This study aims to explore whether and how state-owned manufacturing enterprises can improve their poor ESG performance through digital transformation in the digital economy. This study takes Shanghai and Shenzhen A-share state-owned listed manufacturing enterprises as the research sample and constructs an unbalanced panel. OLS regression analysis is used to empirically test the impact of digital transformation on the ESG performance of the sample firms. Further attempts are made to discuss the influence mechanism of digital transformation from the perspectives of dynamic capabilities and the institutional environment through stepwise and hierarchical regression methods, respectively. The study shows that, firstly, digital transformation is an important influencing factor in promoting the improvement of enterprises’ ESG performance, and at the same time, there are significant structural differences in this influence. Second, under the dynamic capability perspective, digital transformation can improve corporate ESG performance through an absorptive feedback mechanism, matching response mechanism, and innovation efficiency enhancement mechanism. Third, from the perspective of the institutional environment, the informal system has a significant positive moderating effect on the relationship between digital transformation and ESG performance, i.e., the informal system and digital transformation have a synergistic governance effect on corporate ESG performance. The moderating effect of the formal institutional environment on digital transformation and ESG performance is not significant. The findings of the study clarify the controversy over the relationship between digital transformation and ESG performance of manufacturing state-owned enterprises and enrich the research on the influencing factors of corporate ESG performance. It also provides a theoretical foundation and empirical evidence for manufacturing SOEs to improve ESG performance and lead to sustainable development.
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