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Intelligent manufacturing and corporate green transformation

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  • Cai, Xiaotong
  • Lin, Peiyang
  • Wang, Rui

Abstract

The rapid evolution of intelligent manufacturing technologies presents opportunities and challenges for corporate environmental sustainability. Although these advancements offer potentially improved efficiency and reduced environmental impact, their actual effect on firms' green transformation remains understudied, particularly in the Chinese market. Hence, this research fills this gap by focusing on the mediating roles of financing constraints and knowledge diversification. Utilizing a comprehensive dataset of 18,390 firm-year observations from Chinese A-share listed companies between 2007 and 2022, we employ fixed-effects regression models and mediation analyses to examine these relationships. Our findings reveal a notable positive impact of intelligent manufacturing on green transformation, partially mediated by reduced financing constraints and increased knowledge diversification. Furthermore, we uncover important heterogeneities across firm lifecycle stages and ownership structures, with mature firms and state-owned enterprises benefiting more from intelligent manufacturing in their green transformation efforts. These results contribute to the growing literature on sustainable Industry 4.0 and offer valuable insights for policymakers and corporate leaders seeking to leverage technological advancements for environmental sustainability.

Suggested Citation

  • Cai, Xiaotong & Lin, Peiyang & Wang, Rui, 2025. "Intelligent manufacturing and corporate green transformation," International Review of Financial Analysis, Elsevier, vol. 97(C).
    • Handle: RePEc:eee:finana:v:97:y:2025:i:c:s1057521924007282
    DOI: 10.1016/j.irfa.2024.103796
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    More about this item

    Keywords

    Intelligent manufacturing; Green transformation; Technological innovation; Financing constraint; Knowledge diversification;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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