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Research on the Impact of Digital Inclusive Finance on Green Innovation of SMEs

Author

Listed:
  • Chunli Du

    (Collaborative Innovation Center for Emissions Trading System Co-Constructed by the Province and Ministry, Wuhan 430205, China
    Management School, Wuhan Institute of Technology, Wuhan 430205, China)

  • Min Hu

    (Management School, Wuhan Institute of Technology, Wuhan 430205, China)

  • Tao Wang

    (Management School, Wuhan Institute of Technology, Wuhan 430205, China)

  • Mirakhimova Dilafruz Dilmurod Kizi

    (Management School, Wuhan Institute of Technology, Wuhan 430205, China)

Abstract

Green innovation is an effective driving force for high-quality development in the new era. As a new financial service model, digital inclusive finance provides a new way to solve the financing dilemma of green innovation. In order to investigate the impact of digital financial inclusion on the green innovation of small and medium-sized enterprises (SMEs), based on the panel data of SMEs in China from 2011 to 2021, this paper empirically tested the influence and mechanism of the two by using the panel fixed effect model and threshold regression model. The findings demonstrate that digital inclusive finance is effective in promoting the green innovation of SMEs and alleviates their financing constraints. The digitization level of digital inclusive finance also has a significant positive and non-linear effect of increasing “marginal effect” on the green innovation of SMEs. Notably, it has a greater significant role in driving green innovation for non-state-owned enterprises, enterprises located in the central and western regions, and SMEs with dispersed equity. Consequently, several policy implications are derived from these findings, which can provide a sustained impetus to help SMEs carry out green innovation activities and also provide a scientific basis for governments to improve digital financial inclusion policies and achieve economic equity.

Suggested Citation

  • Chunli Du & Min Hu & Tao Wang & Mirakhimova Dilafruz Dilmurod Kizi, 2024. "Research on the Impact of Digital Inclusive Finance on Green Innovation of SMEs," Sustainability, MDPI, vol. 16(11), pages 1-19, May.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:11:p:4700-:d:1406455
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    References listed on IDEAS

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    Cited by:

    1. Yang, Xiaodong & Hunjra, Ahmed Imran & Alharbi, Samar S. & Zhao, Shikuan, 2025. "Towards more inclusive finance: Exploring the mystery of low carbon green technological innovation," Research in International Business and Finance, Elsevier, vol. 78(C).
    2. Yijun Xia & Yingkai Yin, 2025. "Research on the Impact of the Synergy Between Financial Technology and Green Finance on Environmental Efficiency," Sustainability, MDPI, vol. 17(9), pages 1-23, May.
    3. Yan Yao & Zihong Ma, 2025. "Will Digital Inclusive Finance Improve the Quality and Quantity of SMEs’ Green Innovation?," Sustainability, MDPI, vol. 17(6), pages 1-19, March.
    4. Dariusz Piotrowski & Anna Iwona Piotrowska & Michał Bernard Pietrzak, 2026. "Green FinTech—Methodological Controversies in Research," Sustainable Development, John Wiley & Sons, Ltd., vol. 34(S2), pages 797-810, March.
    5. Jiahao Wang & Yijia Yao & Heping Ge & Ji Wang, 2025. "The Impact of Digital Inclusive Finance on SME Innovation," Sustainability, MDPI, vol. 17(8), pages 1-18, April.
    6. Wei, Yaqiong, 2025. "Research on the spatio-temporal dynamic evolution and driving forces of digital inclusive finance in developing countries: A case study of China," International Review of Economics & Finance, Elsevier, vol. 103(C).
    7. Walid Simmou & Maha Shehadeh & Slimane Ed‐Dafali & Khaled Hussainey & Monomita Nandy, 2025. "From Culture to Green Innovation: The Interplay of Social Capital, Entrepreneurial Leadership, and Green Knowledge Sharing in Moroccan Agricultural SMEs," Business Strategy and the Environment, Wiley Blackwell, vol. 34(5), pages 6264-6282, July.
    8. Lien, Guan-Jie & Chung, Kuo Cheng & Guo, Hwang Tsuen, 2026. "Evaluating the sustainable development of digital inclusive finance through fuzzy DEMATEL and VIKOR: A dual-perspective approach," Evaluation and Program Planning, Elsevier, vol. 114(C).

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