Digital Transformation and Continuous Green Innovation of Enterprises: An Empirical Research based on Intermediaries and Regulation Mechanisms

Abstract

In the rapidly expanding realm of the digital economy, the pivotal role of digital transformation in propelling businesses towards sustainable and progressive development is becoming increasingly evident. Examining how digital transformation motivates firms to innovate in green management practices sustainably is essential. Utilizing a dataset encompassing Chinese A-share listed companies from 2008 to 2020, this study empirically examines digital transformation's effects on the ongoing quest for green innovation. Additionally, it delves into the mediating role that green management innovation plays in this dynamic and evaluates how the fit of the innovation ecosystem within a company's regional environment serves as a moderating factor. The findings indicate that digital transformation strengthens firms' capacities for persistent green innovation. Green management innovation is revealed to be an intermediary in this process; meanwhile, aligning the innovation ecosystem's niche within a company's region amplifies the influence of digital transformation on fostering sustainable green innovation. This research offers valuable theoretical perspectives for organizations that leverage digital transformation as a strategic asset for ecologically friendly manufacturing and long-term expansion. This research examines how digital transformation drives sustainable green innovation in businesses, a significant but less-studied area. We aim to uncover the mechanisms influencing innovation, emphasizing the impact of green management and the fit of the innovation environment. We strive to provide empirical insights that enhance theoretical knowledge at the junction of digital strategy and environmental responsibility, guiding corporate practices toward operational efficiency and ecological sustainability. The study intends to foster a corporate ethos by integrating digital initiatives with green innovation and advancing global sustainable development.