Can Corporate Digital Innovation Speed Up Climate Change Mitigation? Evidence From China

Jianjun Dong · Jiajia Tian · Han Lin · Xuekun Suo · Hengqin Wu · Ruochen Zeng

23 citations0/0 files storedIEEE Transactions on Engineering Management

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Digital Economy and Transformation Environmental Sustainability in Business Energy, Environment, Economic Growth

Abstract

Addressing the challenges posed by climate change has led to a global consensus on adopting various environmentally sustainable practices, especially those aimed at reducing carbon emissions. Simultaneously, the role of digital innovation (DI) is increasingly recognized as a potential driver for corporate sustainability transformation in the current wave of the digital era. To investigate the environmental benefits of DI, this study examines the impact of corporate DI on carbon emission intensity (CE) through the lens of dynamic capability view (DCV). Based on the sample of manufacturing companies listed in Chinese Stock “A” market over the period 2010-2020, the empirical results show that corporate DI and CE are negatively correlated. Furthermore, corporate governance (CG) and managerial ability (MA) significantly enhance these relationships. The framework presented provides new perspectives and evidence that DI drives firms' carbon reduction targets.

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1997Dynamic capabilities and strategic management 2007Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance 2013Digital Business Strategy: Toward a Next Generation of Insights 2019Do Investors Care about Carbon Risk?2017Digital Innovation Management: Reinventing Innovation Management Research in a Digital World 2011Quantifying Managerial Ability: A New Measure and Validity Tests 2018Digital innovation and transformation: An institutional perspective 2018Quo Vadis, Dynamic Capabilities? A Content-Analytic Review of the Current State of Knowledge and Recommendations for Future Research

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