<p>Leveraging panel data from A-share-listed manufacturing firms in Shanghai and Shenzhen between 2012 and 2022, this study explores the impact of digital transformation on two dimensions of green innovation: strategic and substantive. The empirical results show that digital transformation significantly improves firms’ green innovation performance, with a significantly stronger effect observed on substantive green innovation than on strategic green innovation. In eastern regions, digital transformation exerts a stronger influence on substantive green innovation, whereas in central and western regions, it plays a more significant role in promoting strategic green innovation. Furthermore, in industries with low concentration and among state-owned enterprise samples, digital transformation demonstrates a stronger promotional effect on substantive green innovation than on strategic green innovation. The intermediary mechanism analysis indicates that digital transformation promotes green innovation by enhancing knowledge search capabilities, optimizing resource allocation, and improving governance mechanisms. Moreover, industry-academia-research collaboration positively regulates the relationship between digital transformation and substantive green innovation. Further research findings indicate that the promotional effect of digital transformation on green innovation exerts a positive influence on enterprises’ high-quality development. These findings highlight the transformative potential of digitalization in advancing sustainable innovation and provide valuable policy implications for promoting green development amid the digital economic transition.</p> Graphical Abstract <p></p>