Exploring the relationship between digital transformation and green innovation: The mediating role of financing modes.

J Environ Manage

School of Innovation and Entrepreneurship, Guangzhou University, Guangzhou, 510006, China; School of Management, Guangzhou University, Guangzhou, 510006, China. Electronic address:

Published: April 2024

AI Article Synopsis

  • - Green innovation is vital for the sustainable growth of businesses, and digital technology plays a crucial role in improving information flow and financing methods for these enterprises.
  • - The study analyzed data from Chinese A-share listed companies between 2010 and 2020 and found that digital transformation significantly boosts companies’ green innovation capabilities, with internal financing and bank loans acting as key facilitators.
  • - However, venture capital had no significant effect in this context, and the research highlights important differences among various types of enterprises, suggesting implications for managers and policymakers to better support green innovation initiatives.

Article Abstract

Green innovation is important and beneficial for the green development of enterprises. The development of digital technology could improve the asymmetry of information and affect the enterprise's financing modes. Currently, a definitive conclusion about the relationship between the digital transformation and green technology innovation has not reached. Additionally, studies have not yet fully explored the impact pathways of corporate digital transformation on green innovation through corporate financing modes. To fill this void, this study collected data of Chinese A-share listed companies from 2010 to 2020. The empirical analysis results showed that digital transformation significantly enhanced enterprises' green innovation abilities. Furthermore, mediating models were utilized to explore how enterprise financing modes mediate the impact of digital transformation on the enterprise green innovation. Results indicated that through internal financing and bank loans as "bridges", digital transformation promoted enterprise green innovation. However, digital transformation did not have a significant impact on enterprise green innovation through venture capital. Moreover, heterogeneity analyses revealed significant differences among different groups of enterprises. This study expands the research field related to digital transformation and enterprise green innovation by providing empirical evidence to uncover the impact of digital transformation on enterprise green innovation. Findings of this study contribute not only to enterprise managerial decision-makers to better leverage digital transformation through corporate financing to accelerate green innovation, but also to government policymakers to design policies to stimulate enterprise green innovation.

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Source
http://dx.doi.org/10.1016/j.jenvman.2024.120558DOI Listing

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