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Digital Transformation and Corporate Environmental Green Innovation Nexus: An Approach towards Green Innovation Improvement

Author

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  • Fenfen Ma

    (School of Management, Yulin University, Yulin 719000, China)

  • Shah Fahad

    (School of Management, Hainan University, Haikou 570228, China
    School of Economics and Management, Leshan Normal University, Leshan 614000, China)

  • Shuxi Yan

    (School of Management, Yulin University, Yulin 719000, China)

  • Yapeng Zhang

    (School of Management, Yulin University, Yulin 719000, China)

Abstract

The impact of digital transformation on green innovation is widely discussed. However, existing studies mainly focus on the impact of the digital transformation of enterprises and fintech company development on environmental green innovation, while ignoring the effect of the digital transformation of commercial banks (DTCB) on corporate green innovation. Therefore, to fill the research gap, this paper explores the impact of DTCB on environmental green innovation in companies based on the data of listed companies from 2010 to 2019. This study finds that DTCB has significantly promoted enterprises’ environmental green innovation. Mechanism analysis shows that DTCB can promote green environmental innovation by increasing R&D expenditures and reducing agency costs. The heterogeneity analysis indicates that DTCB can only promote the green environmental innovation of private enterprises and enterprises with a high degree of digital transformation, but it cannot promote the green environmental innovation of state-owned enterprises and enterprises with a low degree of digital transformation. From the perspective of DTCB, this paper enriches the research on the relationship between digital finance and enterprise environmental green innovation. The government should promote the digital transformation of enterprises to utilize the green innovation effect of DTCB.

Suggested Citation

  • Fenfen Ma & Shah Fahad & Shuxi Yan & Yapeng Zhang, 2023. "Digital Transformation and Corporate Environmental Green Innovation Nexus: An Approach towards Green Innovation Improvement," Sustainability, MDPI, vol. 15(7), pages 1-15, April.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:7:p:6258-:d:1116784
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    Cited by:

    1. Yuxin Ning & Yihan Zhang, 2023. "Does Digital Finance Improve Corporate ESG Performance? An Intermediary Role Based on Financing Constraints," Sustainability, MDPI, vol. 15(13), pages 1-17, July.
    2. Kun Wang & Bing Chen & Yuhong Li, 2024. "Technological, process or managerial innovation? How does digital transformation affect green innovation in industrial enterprises?," Economic Change and Restructuring, Springer, vol. 57(1), pages 1-32, February.

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