Unraveling the impact of digital transformation on green innovation through microdata and machine learning.

Journal: Journal of environmental management
PMID: 38354610

Abstract

How to use digitalization to support the green transformation of organizations has drawn much attention based on the rapid development of digitalization. However, digital transformation (DT) may be hindered by the "IT productivity paradox." Exploring the influence of DT on green innovation, we analyze panel data encompassing A-share listed companies in Shanghai and Shenzhen spanning the period from 2010 to 2018. It tests the DT's non-linear impact, employing a random-forest and mediation effect models. The results reveal that (i) DT can promote green innovation; (ii) regarding heterogeneity, the promotion effect is mainly manifested in enterprises in non-state-owned and highly competitive industries; (iii) based on mechanism testing, DT relies on two routes to encourage green innovation: improving environmental information disclosure and reducing environmental uncertainty; and (iv) random-forest analysis shows that DT exhibits an inverted U-shaped non-linear effect on green innovation, including the "IT productivity paradox." This study enhances the existing discourse on DT and green innovation by furnishing empirical substantiation for the non-linear influence exerted by DT on green innovation. Furthermore, it imparts insights into the mechanisms and contextual limitations governing this association.

Authors

  • Yuangang Han
    Northeast Asian Studies College, Jilin University, Changchun, 130012, China.
  • Zhentao Li
    Department of Power Engineering, North China Electric Power University, Baoding 071003, China.
  • Tianchu Feng
    Jiyang College, Zhejiang A&F University, Zhuji, 311800, China; Zhejiang Province Key Think Tank: Institute of Ecological Civilization, Zhejiang A&F University, Hangzhou, 311300, Zhejiang, China. Electronic address: fengtianchu1219@zafu.edu.cn.
  • Shilei Qiu
    School of Management, Nanjing University of Posts and Telecommunications, Nanjing, Jiangsu, 210003, China.
  • Jin Hu
    Department of Mathematics, Chongqing Jiaotong University, Chongqing, China. Electronic address: windyvictor@gmail.com.
  • Krishna Kumar Yadav
    Faculty of Science and Technology, Madhyanchal Professional University, Ratibad, Bhopal, 462044, India.
  • Ahmad J Obaidullah
    Department of Pharmaceutical Chemistry, College of Pharmacy, King Saud University, P.O. Box 2457, Riyadh, 11451, Saudi Arabia.

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