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The Impact of Preferential Policy on Corporate Green Innovation: A Resource Dependence Perspective

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  • Chenshuo Li

    (School of Economics, Nankai University, Tianjin 300071, China)

  • Shihan Feng

    (Business School, Nankai University, Tianjin 300071, China)

  • Qingyu Yuan

    (Business School, Nankai University, Tianjin 300071, China)

  • Jiahui Wei

    (Business School, Nankai University, Tianjin 300071, China)

  • Shiqi Wang

    (Business School, Nankai University, Tianjin 300071, China)

  • Dongdong Huang

    (Business School, Nankai University, Tianjin 300071, China)

Abstract

Government support has long been viewed as a key driver of sustainable transformation and green technological progress. However, the underlying mechanisms ( “how” ) through which preferential policies influence green innovation, as well as the contextual conditions ( “when” ) that shape their effectiveness, remain insufficiently understood. Drawing on resource dependence theory, this study develops a dual-mediation framework to investigate how preferential tax policies promote both the quantity and quality of green innovation—by enhancing R&D investment as an internal mechanism and alleviating financing constraints as an external mechanism. These effects are especially salient among non-state-owned enterprises, firms in resource-constrained industries, and those situated in environmentally challenged regions—contexts that entail higher dependence on external support for sustainable development. Leveraging China’s 2017 R&D tax reduction policy as a quasi-natural experiment, this study uses a sample of high-tech small- and medium-sized enterprises (SMEs) to test the hypotheses. The findings provide robust evidence on how preferential policies contribute to corporate sustainability through green innovation and identify the conditions under which policy tools are most effective. This research offers important implications for designing targeted, sustainability-oriented innovation policies that support SMEs in transitioning toward more sustainable practices.

Suggested Citation

  • Chenshuo Li & Shihan Feng & Qingyu Yuan & Jiahui Wei & Shiqi Wang & Dongdong Huang, 2025. "The Impact of Preferential Policy on Corporate Green Innovation: A Resource Dependence Perspective," Sustainability, MDPI, vol. 17(15), pages 1-24, July.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:15:p:6834-:d:1711375
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