ESP-3303

Published

2025-04-21

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Vol. 10 No. 4 (2025): Published

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Research Articles

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Copyright (c) 2025  Ni Xiong, Yongheng Hu, Xi Zhang, Batkhuyag Ganbaatar, Wei Zhang, Zhengbin Wang

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How to Cite

Xiong, N., Hu, Y., Zhang, X., Ganbaatar, B., Zhang, W., & Wang, Z. (2025). Does the diffusion of digital technologies promote corporate green innovation? Empirical evidence from China. Environment and Social Psychology, 10(4). https://doi.org/10.59429/esp.v10i4.3303

Does the diffusion of digital technologies promote corporate green innovation? Empirical evidence from China

Ni Xiong

1 Business Management Department, University of Finance and Economics, Mongolia, Ulaanbaatar, 13381, Mongolia 2 Institute of Digital Economy and Green Development, Zhejiang International Studies University, Hangzhou, 310023, China

Yongheng Hu

Institute of Digital Economy and Green Development, Zhejiang International Studies University, Hangzhou, 310023, China

Xi Zhang

Institute of Management, Sichuan Academy of Social Sciences, Chengdu, 610072, China

Batkhuyag Ganbaatar

Business Management Department, University of Finance and Economics, Mongolia, Ulaanbaatar, 13381, Mongolia

Wei Zhang

School of Economics, Inner Mongolia University of Finance and Economics, Hohhot, 010070, China

Zhengbin Wang

Business Management Department, University of Finance and Economics, Mongolia, Ulaanbaatar, 13381, Mongolia


DOI: https://doi.org/10.59429/esp.v10i4.3303


Keywords: digital technology diffusion; green technology innovation; green innovation quality; green innovation quantity; green innovation efficiency

Abstract

To explore how the diffusion of digital technologies shapes corporate green innovation, this study uses panel data from A-share listed companies between 2007 and 2021. The empirical findings reveal that digital diffusion significantly enhances the quality, quantity, and efficiency of green innovation. The effects are heterogeneous across firms: in high-tech enterprises, digital diffusion primarily improves innovation quality, while in non-high-tech enterprises, it mainly boosts innovation quantity. Moreover, the positive effects are stronger in heavily polluting industries than in cleaner ones. Mechanism analysis suggests that digital diffusion advances green innovation by strengthening internal corporate capabilities—particularly in production, automation, R&D, and management. These enhanced capabilities lead to more efficient and higher-quality green innovation outcomes. Interestingly, the study uncovers an inverted U-shaped relationship between digital diffusion and the quantity of green innovation, implying that while early-stage diffusion stimulates innovation, its marginal benefits may decline after a certain threshold. This finding offers valuable insights into the stages of technological adoption and their varying impacts. The research provides strategic implications for both policymakers and corporate leaders. For governments, it underscores the need to balance support for digital infrastructure with regulation to avoid diminishing returns. For firms, especially those in high-pollution or low-tech sectors, the study highlights the importance of timing and scale in digital transformation strategies.

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