IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i7p3176-d1627566.html
   My bibliography  Save this article

The Dynamic Role of Green Innovation Adoption and Green Technology Adoption in the Digital Economy: The Mediating and Moderating Effects of Creative Enterprise and Financial Capability

Author

Listed:
  • Hao Liang

    (School of Management, Guangzhou University, Guangzhou 510006, China)

  • Muttahir Hussain

    (School of Management, Guangzhou University, Guangzhou 510006, China)

  • Amir Iqbal

    (School of Economics and Statistics, Guangzhou University, Guangzhou 510006, China)

Abstract

This study investigates the critical roles of green innovation adoption (GIA) and green technology adoption (GTA) in advancing the digital economy (DE). It explores how creative enterprises (CE) and financial capability (FC) mediate and moderate the relationships between green innovation, technology adoption, and the digital economy. Data were collected from 400 respondents in the automotive industry in China through a structured survey questionnaire. Structural Equation Modeling (SEM) was conducted using Smart PLS 4.0 to analyze the data and test the proposed hypotheses. The findings indicate that green innovation and technology adoption significantly and positively impact the digital economy. Moreover, these factors positively influence creative enterprises, enhancing the digital economy. Creative enterprises were also found to mediate the relationship between green innovation/technology adoption and the digital economy. In addition, financial capability significantly moderated the link between creative enterprises and the digital economy. This research contributes to the literature by examining the synergistic effects of environmental sustainability, innovation adoption, and technological integration within the digital economy. It provides actionable insights into embedding sustainable practices in the evolving digital landscape while highlighting the intricate dynamics among innovation, technology adoption, and financial resources in driving economic transformation. This study contributes to the literature by exploring the synergistic effects of green innovation, technology adoption, and financial capability in driving the digital economy, focusing on creative enterprises as a mediating factor. It provides actionable insights for integrating sustainability into the digital landscape, offering a novel framework for economic transformation in the automotive industry.

Suggested Citation

  • Hao Liang & Muttahir Hussain & Amir Iqbal, 2025. "The Dynamic Role of Green Innovation Adoption and Green Technology Adoption in the Digital Economy: The Mediating and Moderating Effects of Creative Enterprise and Financial Capability," Sustainability, MDPI, vol. 17(7), pages 1-28, April.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:7:p:3176-:d:1627566
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/7/3176/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/7/3176/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Jeoung Yul Lee & Shufeng (Simon) Xiao & Surender Munjal, 2023. "How business groups build globally relevant knowledge from local contexts? Exploring the double-edged sword effect of cultural diversity," Asian Business & Management, Palgrave Macmillan, vol. 22(5), pages 2189-2224, November.
    3. Mendiola Teng-Calleja & Alfred Presbitero & Mira Michelle Guzman, 2023. "Organizational direction, expectations, and employees’ intention for Green HRM practices in the Philippines: a signaling theory perspective," Asian Business & Management, Palgrave Macmillan, vol. 22(4), pages 1301-1327, September.
    4. Hanyu Zhang & Kaiyue Zhang & Taihua Yan & Xiaonan Cao, 2025. "The impact of digital infrastructure on regional green innovation efficiency through industrial agglomeration and diversification," Palgrave Communications, Palgrave Macmillan, vol. 12(1), pages 1-15, December.
    5. Mohammad Wasiq & Mustafa Kamal & Nazim Ali, 2023. "Factors Influencing Green Innovation Adoption and Its Impact on the Sustainability Performance of Small- and Medium-Sized Enterprises in Saudi Arabia," Sustainability, MDPI, vol. 15(3), pages 1-22, January.
    6. Zhi-Guang Li & Yanrui Wu & Yao-Kuang Li, 2023. "Technical Founders, Digital Transformation and Corporate Technological Innovation: Empirical Evidence from Listed Companies in China’s STAR Market," Economics Discussion / Working Papers 23-03, The University of Western Australia, Department of Economics.
    7. Bai, Dongbei & Du, Lizhao & Xu, Yang & Abbas, Shujaat, 2023. "Climate policy uncertainty and corporate green innovation: Evidence from Chinese A-share listed industrial corporations," Energy Economics, Elsevier, vol. 127(PB).
    8. Zahid Yousaf & Magdalena Radulescu & Crenguta Ileana Sinisi & Luminita Serbanescu & Loredana Maria Păunescu, 2021. "Towards Sustainable Digital Innovation of SMEs from the Developing Countries in the Context of the Digital Economy and Frugal Environment," Sustainability, MDPI, vol. 13(10), pages 1-28, May.
    9. Hua Feng & Fengyan Wang & Guomin Song & Lanlan Liu, 2022. "Digital Transformation on Enterprise Green Innovation: Effect and Transmission Mechanism," IJERPH, MDPI, vol. 19(17), pages 1-31, August.
    10. Zhang, Zhi & Meng, Qingkun & Wang, Jun & Wu, Ying, 2025. "Digital economy, customer stability, and organizational resilience," Finance Research Letters, Elsevier, vol. 72(C).
    11. Oana Pricopoaia & Andreea Valentina Busila & Nicoleta Cristache & Irina Susanu & Cosmin Matis, 2024. "Challenges for entrepreneurial innovation: Startups as tools for a better knowledge-based economy," International Entrepreneurship and Management Journal, Springer, vol. 20(2), pages 969-1010, June.
    12. Fu, Jonathan, 2020. "Ability or opportunity to act: What shapes financial well-being?," World Development, Elsevier, vol. 128(C).
    13. Emilia Herman, 2022. "The Interplay between Digital Entrepreneurship and Sustainable Development in the Context of the EU Digital Economy: A Multivariate Analysis," Mathematics, MDPI, vol. 10(10), pages 1-28, May.
    14. Na Wang & Jinshan Zhang & Xiue Zhang & Wei Wang, 2022. "How to Improve Green Innovation Performance: A Conditional Process Analysis," Sustainability, MDPI, vol. 14(5), pages 1-18, March.
    15. Jianbin Sun & Xiaohong Wu, 2024. "Digital Economy, Energy Structure and Carbon Emissions: Evidence from China," SAGE Open, , vol. 14(2), pages 21582440241, June.
    16. Ledyard Tucker & Charles Lewis, 1973. "A reliability coefficient for maximum likelihood factor analysis," Psychometrika, Springer;The Psychometric Society, vol. 38(1), pages 1-10, March.
    17. Decai Tang & Wenya Chen & Qian Zhang & Jianqun Zhang, 2023. "Impact of Digital Finance on Green Technology Innovation: The Mediating Effect of Financial Constraints," Sustainability, MDPI, vol. 15(4), pages 1-16, February.
    18. Wang, Xin & Gan, Yufei & Zhou, Shiqi & Wang, Xinqiao, 2024. "Digital technology adoption, absorptive capacity, CEO green experience and the quality of green innovation: Evidence from China," Finance Research Letters, Elsevier, vol. 63(C).
    19. Zhiqiang Zhou & Wenyan Liu & Pengfei Cheng & Zhenjin Li, 2022. "The Impact of the Digital Economy on Enterprise Sustainable Development and Its Spatial-Temporal Evolution: An Empirical Analysis Based on Urban Panel Data in China," Sustainability, MDPI, vol. 14(19), pages 1-23, September.
    20. Shuja Iqbal & Hongyun Tian & Shamim Akhtar & Hasnain Javed, 2025. "Effects of green entrepreneurship and digital transformation on eco-efficient e-commerce," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-25, December.
    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. Jacqueline de Almeida Barbosa Franco & Ary Franco Junior & Rosane Aparecida Gomes Battistelle & Barbara Stolte Bezerra, 2024. "Dynamic Capabilities: Unveiling Key Resources for Environmental Sustainability and Economic Sustainability, and Corporate Social Responsibility towards Sustainable Development Goals," Resources, MDPI, vol. 13(2), pages 1-25, February.
    2. Albérico Travassos Rosário & Joana Carmo Dias, 2023. "The New Digital Economy and Sustainability: Challenges and Opportunities," Sustainability, MDPI, vol. 15(14), pages 1-23, July.
    3. Li, Pengcheng & Guo, Xiaochuan & Wang, Fengzheng & Zhang, Qifeng, 2025. "Digital transformation and corporate innovation boundaries: Role of supply chain concentration and transparency," International Review of Financial Analysis, Elsevier, vol. 98(C).
    4. Hung, Richard Yu Yuan & Lien, Bella Ya-Hui & Yang, Baiyin & Wu, Chi-Min & Kuo, Yu-Ming, 2011. "Impact of TQM and organizational learning on innovation performance in the high-tech industry," International Business Review, Elsevier, vol. 20(2), pages 213-225, April.
    5. Shang Chen & Yuanhe Du & Yeye Liu, 2025. "Regional Integration and Urban Green and Low-Carbon Development: A Quasi-Natural Experiment Based on the Expansion of the Yangtze River Delta Urban Agglomeration," Sustainability, MDPI, vol. 17(8), pages 1-34, April.
    6. Li, Wanli & Luo, Dan & Cheng, Teng-Yuan, 2025. "Strategy choices in strategic risk-taking: Does climate risk matter?," International Review of Financial Analysis, Elsevier, vol. 97(C).
    7. Yang, Yanwu & Ren, Haili & Liu, Yutong & Yang, Yusen, 2025. "Integration of technology and finance, digital transformation and corporate green innovation," Finance Research Letters, Elsevier, vol. 71(C).
    8. Zhaoqing Sun & Jianxu Liu & Roengchai Tansuchat, 2023. "China’s Digital Economy and Enterprise Labor Demand: The Mediating Effects of Green Technology Innovation," Sustainability, MDPI, vol. 15(15), pages 1-24, July.
    9. Man Zhang & Patriya Tansuhaj & James McCullough, 2009. "International entrepreneurial capability: The measurement and a comparison between born global firms and traditional exporters in China," Journal of International Entrepreneurship, Springer, vol. 7(4), pages 292-322, December.
    10. Li, Yu & Zhong, Huiyi & Tong, Qiye, 2024. "Artificial intelligence, dynamic capabilities, and corporate financial asset allocation," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    11. Cecilia Correggi & Paolo Di Toma & Stefano Ghinoi, 2024. "Rethinking dynamic capabilities in light of sustainability: A bibliometric analysis," Business Strategy and the Environment, Wiley Blackwell, vol. 33(8), pages 7990-8016, December.
    12. Hung, Richard Yu Yuan & Yang, Baiyin & Lien, Bella Ya-Hui & McLean, Gary N. & Kuo, Yu-Ming, 2010. "Dynamic capability: Impact of process alignment and organizational learning culture on performance," Journal of World Business, Elsevier, vol. 45(3), pages 285-294, July.
    13. Jiaoning Zhang & Xiaoyu Ma & Jiamin Liu, 2022. "How Can the Digital Economy and Human Capital Improve City Sustainability," Sustainability, MDPI, vol. 14(23), pages 1-18, November.
    14. Nidhi Karwasra & Vani Aggarwal, 2024. "Impact of Digital Competitiveness on Sustainable Development: A Systematic Literature Review," International Journal of Global Business and Competitiveness, Springer, vol. 19(1), pages 51-63, December.
    15. Maren Schlömer & Hendrik Wilhelm & Indre Maurer & Frank Wallau, 2013. "Die Wirkung dynamischer Fähigkeiten auf die Effektivität und Effizienz operativer Prozesse," Schmalenbach Journal of Business Research, Springer, vol. 65(3), pages 214-243, May.
    16. Wagner, Marcus, 2015. "The link of environmental and economic performance: Drivers and limitations of sustainability integration," Journal of Business Research, Elsevier, vol. 68(6), pages 1306-1317.
    17. Muhammad Sadiq & Mei Kei Leong & Ansa Savad Salim & Zhou Jiayao, 2025. "Fostering entrepreneurial success through the predictive role of knowledge management, green creativity, green social behavior, dynamic capabilities, business environment and green service innovation," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-27, December.
    18. Swen Nadkarni & Reinhard Prügl, 2021. "Digital transformation: a review, synthesis and opportunities for future research," Management Review Quarterly, Springer, vol. 71(2), pages 233-341, April.
    19. Kibaek Lee & Jaeheung Yoo & Munkee Choi & Hangjung Zo & Andrew P Ciganek, 2016. "Does External Knowledge Sourcing Enhance Market Performance? Evidence from the Korean Manufacturing Industry," PLOS ONE, Public Library of Science, vol. 11(12), pages 1-19, December.
    20. Panagiotis Trivellas & Georgios Malindretos & Panagiotis Reklitis, 2020. "Implications of Green Logistics Management on Sustainable Business and Supply Chain Performance: Evidence from a Survey in the Greek Agri-Food Sector," Sustainability, MDPI, vol. 12(24), pages 1-29, December.

    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:gam:jsusta:v:17:y:2025:i:7:p:3176-:d:1627566. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.