Digital Transformation and Enterprise Green Innovation: Evidence from Resource Investment and Technological Application Mechanisms
TL;DR
A significant positive association between digital transformation and green innovation is demonstrated and this effect is partially mediated by increased R&D(Resource and Development) investment and deeper digital organizational embedding, which constitute complementary pathways reflecting resource investment and enhanced resource utilization, respectively.
Abstract
Digital transformation has come to the fore as a pivotal force behind corporate green innovation in the digital economy. Although previous research has documented that digital transformation can promote green innovation, the underlying organizational mechanisms remain theoretically fragmented. Moreover, the external conditions that shape the effectiveness of this relationship are not yet fully understood. To address these gaps, we develop an integrated analytical framework anchored in Organizational Information Processing Theory (OIPT) and the Resource-Based View (RBV). This framework explains how digital transformation promotes green innovation through two complementary organizational mechanisms—resource investment and technology application—and incorporates the moderating role of digital infrastructure. Using panel data on Chinese A-share-listed firms covering 2015–2024, this study examines the proposed relationships through a Bidirectional Fixed Effects Model, mediation analysis, and moderation analysis. The findings demonstrate a significant positive association between digital transformation and green innovation. This effect is partially mediated by increased R&D(Resource and Development) investment and deeper digital organizational embedding, which constitute complementary pathways reflecting resource investment and enhanced resource utilization, respectively. Additionally, digital infrastructure positively moderates this relationship by providing a more supportive external digital environment. This study enriches the existing literature by synthesizing previously dispersed perspectives on mechanisms into an OIPT-RBV framework, offering a more comprehensive account of how and under what circumstances digital transformation facilitates green innovation. Our findings also carry practical implications for managers seeking to strengthen innovation capabilities and for policymakers aiming to advance digital infrastructure and firms’ sustainable development.