IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v263y2023ics0925527323002013.html
   My bibliography  Save this article

Digital transformation and low-carbon technology innovation in manufacturing firms: The mediating role of dynamic capabilities

Author

Listed:
  • Yang, Gangqiang
  • Nie, Yiming
  • Li, Honggui
  • Wang, Haisen

Abstract

Green challenges such as global warming call for deeper low-carbon technology changes in manufacturing firms, and digital transformation (DT) may play a major role. Most existing studies have investigated the impact of DT as a whole on green technology innovation but lack a dynamic mechanism analysis from a process perspective. Therefore, this article proposes a theoretical framework for multistage DT to drive low-carbon technology innovation (LCTI) in manufacturing firms, which is closely linked to three dynamic capabilities (DCs). Based on the panel data of A-share manufacturing firms in China from 2011 to 2019, this article finds the following. First, DT effectively promotes LCTI, and this effect is a “leverage effect” superimposed on existing innovation. Second, the theoretical mechanism shows that the data analysis, data operation, and data empowerment stages of DT enhance the absorptive capacity, innovation capacity, and adaptive capacity of enterprises, respectively, which in turn promote LCTI. Empirical tests support the mediating effects of the first two capabilities; however, adaptive capacity is validated to be effective only for low-tech firms due to the limited increase in strategic flexibility of high-tech firms by marginal DT enhancement. Third, the heterogeneity analysis shows that the promotion effect of DT on LCTI is stronger for carbon reduction and decarbonization technologies, more significant for low-emission firms, and stronger for firms in the cohort network. These conclusions add new microevidence of the environmental benefits of the digital economy and provide new explanations for opening the “black box” of DT and LCTI based on a process perspective. At the same time, this work can help manufacturing firms in developing countries follow the low-carbon transformation path by independent innovation and, moreover, reduce the originally enormous amounts of energy consumption and carbon emissions of these countries and contribute to the response to global warming and the energy crisis.

Suggested Citation

  • Yang, Gangqiang & Nie, Yiming & Li, Honggui & Wang, Haisen, 2023. "Digital transformation and low-carbon technology innovation in manufacturing firms: The mediating role of dynamic capabilities," International Journal of Production Economics, Elsevier, vol. 263(C).
    • Handle: RePEc:eee:proeco:v:263:y:2023:i:c:s0925527323002013
    DOI: 10.1016/j.ijpe.2023.108969
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527323002013
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2023.108969?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Nicholas Bloom & Luis Garicano & Raffaella Sadun & John Van Reenen, 2014. "The Distinct Effects of Information Technology and Communication Technology on Firm Organization," Management Science, INFORMS, vol. 60(12), pages 2859-2885, December.
    2. Rosa Maria Dangelico & Devashish Pujari & Pierpaolo Pontrandolfo, 2017. "Green Product Innovation in Manufacturing Firms: A Sustainability‐Oriented Dynamic Capability Perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 26(4), pages 490-506, May.
    3. Cecere, Grazia & Corrocher, Nicoletta & Gossart, Cédric & Ozman, Muge, 2014. "Technological pervasiveness and variety of innovators in Green ICT: A patent-based analysis," Research Policy, Elsevier, vol. 43(10), pages 1827-1839.
    4. Lin Boqiang, 2022. "China’s High-Quality Economic Growth in the Process of Carbon Neutrality," China Finance and Economic Review, De Gruyter, vol. 11(4), pages 3-22, December.
    5. Huang, Zhehao & Liao, Gaoke & Li, Zhenghui, 2019. "Loaning scale and government subsidy for promoting green innovation," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 148-156.
    6. Castellacci, Fulvio & Natera, Jose Miguel, 2013. "The dynamics of national innovation systems: A panel cointegration analysis of the coevolution between innovative capability and absorptive capacity," Research Policy, Elsevier, vol. 42(3), pages 579-594.
    7. Nambisan, Satish & Wright, Mike & Feldman, Maryann, 2019. "The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes," Research Policy, Elsevier, vol. 48(8), pages 1-1.
    8. Patrick Bajari & Victor Chernozhukov & Ali Hortaçsu & Junichi Suzuki, 2019. "The Impact of Big Data on Firm Performance: An Empirical Investigation," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 33-37, May.
    9. Wenhao Song & Hongyan Yu, 2018. "Green Innovation Strategy and Green Innovation: The Roles of Green Creativity and Green Organizational Identity," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(2), pages 135-150, March.
    10. Ovuakporie, Oghogho Destina & Pillai, Kishore Gopalakrishna & Wang, Chengang & Wei, Yingqi, 2021. "Differential moderating effects of strategic and operational reconfiguration on the relationship between open innovation practices and innovation performance," Research Policy, Elsevier, vol. 50(1).
    11. Sucheta Nadkarni & V. K. Narayanan, 2007. "Strategic schemas, strategic flexibility, and firm performance: the moderating role of industry clockspeed," Strategic Management Journal, Wiley Blackwell, vol. 28(3), pages 243-270, March.
    12. Li, Lingjia & Shan, Shuo & Dai, Jing & Che, Wen & Shou, Yongyi, 2022. "The impact of green supply chain management on green innovation: A meta-analysis from the inter-organizational learning perspective," International Journal of Production Economics, Elsevier, vol. 250(C).
    13. Philippe Aghion & Cameron Hepburn & Alexander Teytelboym & Dimitri Zenghelis, 2019. "Path dependence, innovation and the economics of climate change," PSE-Ecole d'économie de Paris (Postprint) halshs-02489451, HAL.
    14. Seyedesmaeil Mousavi & Bart Bossink & Mario van Vliet, 2019. "Microfoundations of companies' dynamic capabilities for environmentally sustainable innovation: Case study insights from high‐tech innovation in science‐based companies," Business Strategy and the Environment, Wiley Blackwell, vol. 28(2), pages 366-387, February.
    15. Mark T. Leary & Michael R. Roberts, 2014. "Do Peer Firms Affect Corporate Financial Policy?," Journal of Finance, American Finance Association, vol. 69(1), pages 139-178, February.
    16. Yu, Chin-Hsien & Wu, Xiuqin & Zhang, Dayong & Chen, Shi & Zhao, Jinsong, 2021. "Demand for green finance: Resolving financing constraints on green innovation in China," Energy Policy, Elsevier, vol. 153(C).
    17. Timothy G. Conley & Christian B. Hansen & Peter E. Rossi, 2012. "Plausibly Exogenous," The Review of Economics and Statistics, MIT Press, vol. 94(1), pages 260-272, February.
    18. Junming Zhu & Yichun Fan & Xinghua Deng & Lan Xue, 2019. "Low-carbon innovation induced by emissions trading in China," Nature Communications, Nature, vol. 10(1), pages 1-8, December.
    19. Maurizio Zollo & Sidney G. Winter, 2002. "Deliberate Learning and the Evolution of Dynamic Capabilities," Organization Science, INFORMS, vol. 13(3), pages 339-351, June.
    20. Zhai, Huayun & Yang, Min & Chan, Kam C., 2022. "Does digital transformation enhance a firm's performance? Evidence from China," Technology in Society, Elsevier, vol. 68(C).
    21. Fulvio Castellacci & Davide Consoli & Artur Santoalha, 2018. "Technological Diversification in European Regions: The Role of E-skills," Working Papers on Innovation Studies 20181009, Centre for Technology, Innovation and Culture, University of Oslo.
    22. Dennis E. Smallwood & John Conlisk, 1979. "Product Quality in Markets Where Consumers are Imperfectly Informed," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 93(1), pages 1-23.
    23. Ardito, Lorenzo & Petruzzelli, Antonio Messeni & Ghisetti, Claudia, 2019. "The impact of public research on the technological development of industry in the green energy field," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 25-35.
    24. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    25. Bruce Sacerdote, 2001. "Peer Effects with Random Assignment: Results for Dartmouth Roommates," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(2), pages 681-704.
    26. Santoalha, Artur & Consoli, Davide & Castellacci, Fulvio, 2021. "Digital skills, relatedness and green diversification: A study of European regions," Research Policy, Elsevier, vol. 50(9).
    27. Lu Qiu & Xiaowen Jie & Yanan Wang & Minjuan Zhao, 2020. "Green product innovation, green dynamic capability, and competitive advantage: Evidence from Chinese manufacturing enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 146-165, January.
    28. Ben Arfi, Wissal & Hikkerova, Lubica & Sahut, Jean-Michel, 2018. "External knowledge sources, green innovation and performance," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 210-220.
    29. Casey Dougal & Christopher A. Parsons & Sheridan Titman, 2015. "Urban Vibrancy and Corporate Growth," Journal of Finance, American Finance Association, vol. 70(1), pages 163-210, February.
    30. Kevin Zheng Zhou & Caroline Bingxin Li, 2012. "How knowledge affects radical innovation: Knowledge base, market knowledge acquisition, and internal knowledge sharing," Strategic Management Journal, Wiley Blackwell, vol. 33(9), pages 1090-1102, September.
    31. Charles J. Fombrun & Ari Ginsberg, 1990. "Shifting gears: Enabling change in corporate aggressiveness," Strategic Management Journal, Wiley Blackwell, vol. 11(4), pages 297-308, May.
    32. Zhou, Min & Govindan, Kannan & Xie, Xiongbiao & Yan, Liang, 2021. "How to drive green innovation in China's mining enterprises? Under the perspective of environmental legitimacy and green absorptive capacity," Resources Policy, Elsevier, vol. 72(C).
    33. Feng, Suling & Zhang, Rong & Li, Guoxiang, 2022. "Environmental decentralization, digital finance and green technology innovation," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 70-83.
    34. Battistoni, Elisa & Gitto, Simone & Murgia, Gianluca & Campisi, Domenico, 2023. "Adoption paths of digital transformation in manufacturing SME," International Journal of Production Economics, Elsevier, vol. 255(C).
    35. Chan, Hing Kai & Yee, Rachel W.Y. & Dai, Jing & Lim, Ming K., 2016. "The moderating effect of environmental dynamism on green product innovation and performance," International Journal of Production Economics, Elsevier, vol. 181(PB), pages 384-391.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pereira, Vijay & Nair, Asha KS. & Bhattacharyya, Som Sekhar, 2025. "Exploring and investigating the complementarity and multidimensionality of innovation for sustainability research: Past present and future," Technovation, Elsevier, vol. 139(C).
    2. Yuan, Baolong & Cao, Xueyun, 2022. "Do corporate social responsibility practices contribute to green innovation? The mediating role of green dynamic capability," Technology in Society, Elsevier, vol. 68(C).
    3. Ying Guo, 2023. "External Knowledge Acquisition and Green Innovation in Chinese Firms: Unveiling the Impact of Green Dynamic Capabilities," SAGE Open, , vol. 13(3), pages 21582440231, July.
    4. Lee, Min-Jae & Kim, Yanghee & Roh, Taewoo, 2024. "Exploring the role of digital servitization for green innovation: Absorptive capacity, transformative capacity, and environmental strategy," Technological Forecasting and Social Change, Elsevier, vol. 207(C).
    5. Magdalena Pichlak, 2021. "The Drivers of Technological Eco-Innovation—Dynamic Capabilities and Leadership," Sustainability, MDPI, vol. 13(10), pages 1-17, May.
    6. Fan, Zhaobin & Long, Rui & Shen, Zhixuan, 2024. "Regional digitalization, dynamic capabilities and green innovation: Evidence from e-commerce demonstration cities in China," Economic Modelling, Elsevier, vol. 139(C).
    7. Qiao, Penghua & Liu, Siting & Fung, Hung-Gay & Wang, Chen, 2024. "Corporate green innovation in a digital economy," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 870-883.
    8. Lingli Qing & Dongphil Chun & Abd Alwahed Dagestani & Peng Li, 2022. "Does Proactive Green Technology Innovation Improve Financial Performance? Evidence from Listed Companies with Semiconductor Concepts Stock in China," Sustainability, MDPI, vol. 14(8), pages 1-20, April.
    9. John Wiredu & Qian Yang & Agyemang Kwasi Sampene & Bright Akwasi Gyamfi & Simplice A. Asongu, 2024. "The effect of green supply chain management practices on corporate environmental performance: Does supply chain competitive advantage matter?," Business Strategy and the Environment, Wiley Blackwell, vol. 33(3), pages 2578-2599, March.
    10. Chotia, Varun & Cheng, Yue & Agarwal, Reeti & Vishnoi, Sushant Kumar, 2024. "AI-enabled Green Business Strategy: Path to carbon neutrality via environmental performance and green process innovation," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    11. Wójcik, Piotr & Obłój, Krzysztof & Buono, Anthony F., 2022. "Addressing social concern through business-nonprofit collaboration: Microfoundations of a firm’s dynamic capability for social responsibility," Journal of Business Research, Elsevier, vol. 143(C), pages 119-139.
    12. Zhang, Tianyu, 2023. "Peer effects in R&D investment based on interlock network: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 89(C).
    13. Abbas, Jawad, 2024. "Does the nexus of corporate social responsibility and green dynamic capabilities drive firms toward green technological innovation? The moderating role of green transformational leadership," Technological Forecasting and Social Change, Elsevier, vol. 208(C).
    14. Philipp Nitzsche & Bernd W. Wirtz & Vincent Göttel, 2016. "Innovation Success In The Context Of Inbound Open Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(02), pages 1-38, February.
    15. Zhongju Liao & Xiaodie Liu, 2023. "Trending topics and themes in environmental innovation research based on topic modeling," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(4), pages 2967-2978, August.
    16. Hanyuan Liang & Guangliang Li & Weikun Zhang & Zhe Chen, 2022. "The Impact of Green Innovation on Enterprise Performance: The Regulatory Role of Government Grants," Sustainability, MDPI, vol. 14(20), pages 1-17, October.
    17. Zahid Yousaf & Magdalena Radulescu & Crenguta Sinisi & Abdelmohsen A. Nassani & Mohamed Haffar, 2022. "How Do Firms Achieve Green Innovation? Investigating the Influential Factors among the Energy Sector," Energies, MDPI, vol. 15(7), pages 1-14, March.
    18. Zhou, Min & Govindan, Kannan & Xie, Xiongbiao & Yan, Liang, 2021. "How to drive green innovation in China's mining enterprises? Under the perspective of environmental legitimacy and green absorptive capacity," Resources Policy, Elsevier, vol. 72(C).
    19. Danni Yu & Shen Tao & Abdul Hanan & Tze San Ong & Badar Latif & Mohsin Ali, 2022. "Fostering Green Innovation Adoption through Green Dynamic Capability: The Moderating Role of Environmental Dynamism and Big Data Analytic Capability," IJERPH, MDPI, vol. 19(16), pages 1-20, August.
    20. Bağış, Mehmet & Kryeziu, Liridon & Akbaba, Yılmaz & Ramadani, Veland & Karagüzel, Ensar Selman & Krasniqi, Besnik A., 2022. "The micro-foundations of a dynamic technological capability in the automotive industry," Technology in Society, Elsevier, vol. 70(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:263:y:2023:i:c:s0925527323002013. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.