As environmental challenges intensify, green innovation has become a critical driver of sustainable development for businesses. This study investigates the effects of the depth and breadth of digital transformation on both the quantity and quality of corporate green innovation, while also examining the moderating role of environmental regulations. Using the data from Chinese manufacturing listed enterprises between 2007 and 2022, the findings reveal that both the depth and breadth of digital transformation positively influence the quantity and quality of green innovation. Specifically, the depth has a stronger impact on enhancing the quality of green innovation, while the breadth primarily drives an increase in its quantity. Additionally, environmental regulations play a moderating role: as environmental regulations tighten, the positive relationship between the breadth of digital transformation and green innovation strengthens, whereas the effect of the depth of digital transformation weakens. This research enriches the understanding of digital transformation and green innovation, offering insights for businesses and policymakers in shaping effective green innovation strategies.

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The Dual Engines of Digital Transformation: How Depth and Breadth Accelerate Green Innovation?

  • Xiaomei Fu,
  • Ting Zeng

摘要

As environmental challenges intensify, green innovation has become a critical driver of sustainable development for businesses. This study investigates the effects of the depth and breadth of digital transformation on both the quantity and quality of corporate green innovation, while also examining the moderating role of environmental regulations. Using the data from Chinese manufacturing listed enterprises between 2007 and 2022, the findings reveal that both the depth and breadth of digital transformation positively influence the quantity and quality of green innovation. Specifically, the depth has a stronger impact on enhancing the quality of green innovation, while the breadth primarily drives an increase in its quantity. Additionally, environmental regulations play a moderating role: as environmental regulations tighten, the positive relationship between the breadth of digital transformation and green innovation strengthens, whereas the effect of the depth of digital transformation weakens. This research enriches the understanding of digital transformation and green innovation, offering insights for businesses and policymakers in shaping effective green innovation strategies.