The equilibrium dilemma: ESG structural imbalance and corporate green innovation

Based on the Resource-Based Theory, this study systematically examines the impact of ESG structural imbalance on corporate green innovation from the dual perspectives of "strategy-driven" and "compliance-driven". The findings reveal that ESG structural imbalance significantly inhibits corporate green innovation, which supports the "compliance-driven" hypothesis. And the degradation in internal self-sustaining capability and constraints in external resource acquisition serve as primary mechanisms. In addition, state-owned enterprises or firms with operating in favorable external information environments can mitigate the negative effect of ESG structural imbalance on green innovation by buffering resource redundancy and reducing investor decision noise. Further analysis shows that ESG structural imbalance offsets the promoting effect of overall ESG performance on green innovation, preventing green innovation from achieving expected enhancement. Furthermore, the inhibitory effect of ESG structural imbalance on green innovation is primarily driven by the environmental dimension. And compared to substantive green innovation, ESG structural imbalance more substantially suppresses strategic green innovation and degrades green innovation quality. By focusing on corporate green innovation activities, this study expands the connotation of sustainable development theory from an internal ESG equilibrium perspective, offering policy insights for enterprises to optimize ESG strategic frameworks and for regulators to refine ESG disclosure systems.