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Impacts of Digital Transformation on the Quantity and Quality of Corporate Green Innovation: Evidence from China

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  • Deshan Li

    (School of Business, Sichuan Normal University, Chengdu 610101, China)

  • Bowen Shu

    (School of Business, Sichuan Normal University, Chengdu 610101, China)

Abstract

Green innovation is a key driver for reshaping the economic development model and attaining sustainable development. Prior research has primarily concentrated on the consequences of digital transformation on the quantity of corporate green innovation, while in-depth investigations into its effects on the quality of green innovation and the underlying mechanisms remain limited. Using data from Chinese A-share listed companies in Shanghai and Shenzhen between 2010 and 2023, this study empirically investigates the effects of digital transformation on both the quantity and quality of corporate green innovation. The results of this research show that, firstly, digital transformation exerts a substantial influence on both categories of green innovation. Second, the mechanism analysis reveals that, on the one hand, digital transformation promotes green innovation by alleviating information asymmetry, thereby effectively improving both its quantity and quality; on the other hand, it facilitates an increase in the quantity of green innovation through resource integration effects, but fails to enhance its quality via this channel. Third, the heterogeneity analysis shows that the positive impacts of digital transformation on the quantity and quality of green innovation are more pronounced in state-owned enterprises, firms located in eastern regions, and high-tech enterprises. This study enhances the research on how digital transformation can augment the quantity and elevate the quality of corporate green innovation, offering a valuable reference for advancing the sustainable development of organizations.

Suggested Citation

  • Deshan Li & Bowen Shu, 2025. "Impacts of Digital Transformation on the Quantity and Quality of Corporate Green Innovation: Evidence from China," Sustainability, MDPI, vol. 17(20), pages 1-20, October.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:20:p:9341-:d:1776190
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    References listed on IDEAS

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