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Digital economy, dynamic capabilities, and corporate green development

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  • Li, Xiaohan
  • You, Jialu
  • Qing, Ye

Abstract

This study examines the impact of regional digital economic development on corporate green performance in China, focusing on the moderating role of organizational dynamic capabilities. Analyzing data from Chinese A-share listed companies (2008–2022), we find a positive relationship between digital advancement and firm-level environmental practices. Organizational dynamic capabilities, particularly absorptive capacity, significantly enhance this relationship. Heterogeneity analysis reveals stronger effects in state-owned enterprises and Central-Western regions, suggesting varied responses across ownership structures and geographic areas. These findings contribute to understanding digitalization's role in corporate sustainability and offer insights for policy and strategy formulation. The study highlights the importance of developing specific organizational capabilities to leverage digital technologies for environmental improvements and emphasizes the need for targeted policies to address disparities in digital economic development benefits. As economies continue to digitalize, these insights become crucial for promoting sustainable development in the digital age.

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  • Li, Xiaohan & You, Jialu & Qing, Ye, 2025. "Digital economy, dynamic capabilities, and corporate green development," Finance Research Letters, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:finlet:v:73:y:2025:i:c:s1544612324014971
    DOI: 10.1016/j.frl.2024.106468
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    1. Li, Sijing & Yin, Yingkai & Jiao, Zeyan & Zhao, Qiuyun, 2025. "Financial investment and green development: How does financialization affect green total factor productivity?," Finance Research Letters, Elsevier, vol. 78(C).

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