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Will the “Underlying Technology” Digital Transformation Promote Substantive Green Innovation in Enterprises?—Evidence from Chinese A-Share Listed Companies

Author

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  • Yifang Liu

    (School of Accounting, Hunan University of Technology and Business, Changsha 410008, China)

  • Ying Zhao

    (School of Accounting, Hunan University of Technology and Business, Changsha 410008, China)

  • Zheng Huang

    (School of Accounting, Hunan University of Technology and Business, Changsha 410008, China)

Abstract

Promoting substantive green innovation is the core pathway for enterprises to achieve sustainable development. However, its inherent characteristics of high investment and high risk often result in insufficient innovation motivation among enterprises. Rooted in the Resource-Based View (RBV) and Dynamic Capability Theory (DCT), the research investigates the influence of underlying technology digital transformation on enterprises’ substantive green innovation. Using panel data from Chinese A-share listed firms (2009–2024), this analysis reveals a significant promotional effect of underlying technology digital transformation on substantive green innovation. The robustness of this conclusion is confirmed by a battery of tests. Mechanism analysis demonstrates that this effect functions mainly through two pathways: “technology empowerment” and “governance optimization”, namely enhancing corporate R&D capability and improving ESG performance. Heterogeneity analysis further indicates that this promotional effect is more prominent in enterprises with higher environmental disclosure levels and better internal control quality. This study elucidates the internal mechanism and boundary constraints by which underlying technology digital transformation empowers substantive green innovation, thereby offering micro-level evidence for comprehending the in-depth integration of digital technologies and eco-friendly development. The findings offer important practical implications for firms in formulating effective “digitalization–greenization” synergy strategies.

Suggested Citation

  • Yifang Liu & Ying Zhao & Zheng Huang, 2026. "Will the “Underlying Technology” Digital Transformation Promote Substantive Green Innovation in Enterprises?—Evidence from Chinese A-Share Listed Companies," Sustainability, MDPI, vol. 18(6), pages 1-18, March.
    • Handle: RePEc:gam:jsusta:v:18:y:2026:i:6:p:2966-:d:1897567
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