Does digital transformation promote green innovation? A micro-level perspective on the Solow Paradox
Digitalization and sustainability, as emerging trends, have long attracted both academic and industrial focuses, yet the topic has not been sufficiently investigated at the micro-firm level. Selecting Chinese listed companies from 2010 to 2021 as the research sample and adopting the two-way fixed ef...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Frontiers Media S.A.
2023-02-01
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| Series: | Frontiers in Environmental Science |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fenvs.2023.1134447/full |
| _version_ | 1797897109194670080 |
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| author | Yi Sun Moyan He |
| author_facet | Yi Sun Moyan He |
| author_sort | Yi Sun |
| collection | DOAJ |
| description | Digitalization and sustainability, as emerging trends, have long attracted both academic and industrial focuses, yet the topic has not been sufficiently investigated at the micro-firm level. Selecting Chinese listed companies from 2010 to 2021 as the research sample and adopting the two-way fixed effects model, the impact of firms’ digital transformation on their green innovation as well as the channels and mechanisms involved are investigated. The empirical results show that, firstly, the digital transformation of firms can significantly promote the quality and quantity of their green innovation. Secondly, internal control is a mediating path for digital transformation to promote green innovation, while financing constraints suppress the above effects, and top management team’s environmental attention positively moderates the promotion of green innovation by corporate digital transformation. Thirdly, the promotion effects are more pronounced in firms that are state-owned, large-scale, ecologically cost-free, and relatively highly financing constrained. The findings suggest that digital transformation has advantages in revealing the “Solow paradox” that persists in the digital era, and the synergistic development of digitalization and greening at the firm level is realistic and feasible. |
| first_indexed | 2024-04-10T07:53:39Z |
| format | Article |
| id | doaj.art-e8f16d11d79b41b8948a0fc4738681c8 |
| institution | Directory Open Access Journal |
| issn | 2296-665X |
| language | English |
| last_indexed | 2024-04-10T07:53:39Z |
| publishDate | 2023-02-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Environmental Science |
| spelling | doaj.art-e8f16d11d79b41b8948a0fc4738681c82023-02-23T07:59:06ZengFrontiers Media S.A.Frontiers in Environmental Science2296-665X2023-02-011110.3389/fenvs.2023.11344471134447Does digital transformation promote green innovation? A micro-level perspective on the Solow ParadoxYi Sun0Moyan He1School of Economics and Management, University of Chinese Academy of Sciences, Beijing, ChinaSino-Danish College, University of Chinese Academy of Sciences, Beijing, ChinaDigitalization and sustainability, as emerging trends, have long attracted both academic and industrial focuses, yet the topic has not been sufficiently investigated at the micro-firm level. Selecting Chinese listed companies from 2010 to 2021 as the research sample and adopting the two-way fixed effects model, the impact of firms’ digital transformation on their green innovation as well as the channels and mechanisms involved are investigated. The empirical results show that, firstly, the digital transformation of firms can significantly promote the quality and quantity of their green innovation. Secondly, internal control is a mediating path for digital transformation to promote green innovation, while financing constraints suppress the above effects, and top management team’s environmental attention positively moderates the promotion of green innovation by corporate digital transformation. Thirdly, the promotion effects are more pronounced in firms that are state-owned, large-scale, ecologically cost-free, and relatively highly financing constrained. The findings suggest that digital transformation has advantages in revealing the “Solow paradox” that persists in the digital era, and the synergistic development of digitalization and greening at the firm level is realistic and feasible.https://www.frontiersin.org/articles/10.3389/fenvs.2023.1134447/fullgreen innovation (GI)digital transformation (DT)sustainable developmentSolow Paradoxmediating effectsuppressing effect |
| spellingShingle | Yi Sun Moyan He Does digital transformation promote green innovation? A micro-level perspective on the Solow Paradox Frontiers in Environmental Science green innovation (GI) digital transformation (DT) sustainable development Solow Paradox mediating effect suppressing effect |
| title | Does digital transformation promote green innovation? A micro-level perspective on the Solow Paradox |
| title_full | Does digital transformation promote green innovation? A micro-level perspective on the Solow Paradox |
| title_fullStr | Does digital transformation promote green innovation? A micro-level perspective on the Solow Paradox |
| title_full_unstemmed | Does digital transformation promote green innovation? A micro-level perspective on the Solow Paradox |
| title_short | Does digital transformation promote green innovation? A micro-level perspective on the Solow Paradox |
| title_sort | does digital transformation promote green innovation a micro level perspective on the solow paradox |
| topic | green innovation (GI) digital transformation (DT) sustainable development Solow Paradox mediating effect suppressing effect |
| url | https://www.frontiersin.org/articles/10.3389/fenvs.2023.1134447/full |
| work_keys_str_mv | AT yisun doesdigitaltransformationpromotegreeninnovationamicrolevelperspectiveonthesolowparadox AT moyanhe doesdigitaltransformationpromotegreeninnovationamicrolevelperspectiveonthesolowparadox |