Research on the Impact of Digital-Realistic Integration to Promote Sustainable Development of Enterprises: Based on the Perspective of Technology Bias

Green and sustainable corporate development promotes economic, environmental, and social sustainability. It significantly enhances long-term corporate profitability and mitigates climate change. An essential avenue toward fostering green sustainable development among enterprises lies in the organic amalgamation of digital technology with the real economy, commonly called digital-real integration. Hence, a comprehensive exploration of digital-real integration and its impact on the green sustainable development of enterprises becomes imperative. This study endeavors to address this need by constructing a two-sector four-factor model focusing on production and R&D. It examines both factor-based integration and technology-based integration of digital technologies to assess their influence on the green sustainable development of enterprises, alongside scrutinizing the bias of technological progress from both theoretical and empirical standpoints. This paper employs panel data from Chinese A-share listed companies covering the period from 2000 to 2022 to develop a model for empirical analysis. The findings reveal that both factor-based fusion and technology-based fusion positively contribute to the green sustainable development of enterprises. However, factor-based fusion exhibits an inverted U-shaped curve relationship, a significant positive promotional effect is observed only when the critical threshold is not exceeded. Furthermore, through a lens of heterogeneity, enterprises grappling with poor revenue status, technological backwardness, inadequate internal control, and non-compliance with the SDG policy may encounter challenges in executing digital-realistic fusion. Subsequent investigations indicate that digital-realistic integration results in a bias toward digital capital and skilled labor, favoring technological advancement. In light of these findings, we propose the following policy recommendations: (1) expedite innovation and optimize the industrial framework; (2) implement tax incentives and fiscal policies to enhance the company’s revenue profile and promote technological advancement; and (3) establish mandatory environmental regulations to ensure the company’s compliance with its sustainable development objectives. These strategies offer a noteworthy Chinese paradigm that could be adapted for fostering sustainable development in developing countries.