Abstract
The rapid expansion of digital technology has increasingly challenged conventional knowledge in corporate green innovation. Debate surrounding whether and how enterprise digital transformation enhances green innovation outcomes is gathering pace. However, there remains no conclusive evidence, in large part because the motivation for green innovation is overlooked. Using data from Chinese publicly listed firms between 2008 and 2021, this study explores the impact of digital transformation on the underlying mechanisms and boundary conditions of green innovation through the lens of company motivations, distinguishing green innovation as substantive-driven and strategic-driven. The results reveal that digital transformation significantly impacts green innovation by strengthening the resource and knowledge bases, which is consistent with the resource-based view. However, considering the motivations of green innovation, we find that digital transformation positively affects substantive innovation, but does not affect strategic green innovation. We further explore the boundary conditions of digital transformation’s effects on green innovation by analyzing the moderating effect of environmental orientation (EO) and separating EO’s motivations into voluntary-driven and mandatory-driven. The results show that environmental orientation positively moderates the relationship between digital transformation and green innovation and that only voluntary-driven EO has a positive moderating effect. Our findings add new insights to the theory linking strategy decision-making to green innovation performance, with specific regard to firms’ motivations.
Similar content being viewed by others
Data availability
The data that support the findings of this study are available from the corresponding author upon request.
References
Aboelmaged M, Hashem G (2019) Absorptive capacity and green innovation adoption in SMEs: the mediating effects of sustainable organisational capabilities. J Clean Prod 220:853–863. https://doi.org/10.1016/j.jclepro.2019.02.150
Adams R, Jeanrenaud S, Bessant J, Denyer D, Overy P (2016) Sustainability-oriented innovation: a systematic review. Int J Manag Rev 18(2):180–205. https://doi.org/10.1111/ijmr.12068
Al-Tuwaijri SA, Christensen TE, Hughes IIKE (2004) The relations among environmental disclosure, environmental performance, and economic performance: a simultaneous equations approach. Acc Organ Soc 29(5–6):447–471. https://doi.org/10.1016/S0361-3682(03)00032-1
Alzamora-Ruiz J, Fuentes-Fuentes MD, Martinez-Fiestas M (2021) Together or separately? Direct and synergistic effects of Effectuation and Causation on innovation in technology-based SMEs. Int Entrep Manag J 17(4):1917–1943. https://doi.org/10.1007/s11365-021-00743-9
Ardito L, Raby S, Albino V, Bertoldi B (2021) The duality of digital and environmental orientations in the context of SMEs: implications for innovation performance. J Bus Res 123:44–56. https://doi.org/10.1016/j.jbusres.2020.09.022
Åström J, Reim W, Parida V (2022) Value creation and value capture for AI business model innovation: a three-phase process framework. Rev Manag Sci 16(7):2111–2133. https://doi.org/10.1007/s11846-022-00521-z
Awan U, Arnold MG, Gölgeci I (2021) Enhancing green product and process innovation: towards an integrative framework of knowledge acquisition and environmental investment. Bus Strategy Environ 30(2):1283–1295. https://doi.org/10.1002/bse.2684
Banerjee SB (2002) Corporate environmentalism: the construct and its measurement. J Bus Res 55(3):177–191. https://doi.org/10.1016/S0148-2963(00)00135-1
Barney JB (1991) Firm resources and sustained competitive advantage. J Manage 17(1):99–120. https://doi.org/10.1177/014920639101700108
Barney JB (2001) Resource-based theories of competitive advantage: a ten-year retrospective on the resource-based view. J Manage 27(6):643–650. https://doi.org/10.1177/014920630102700602
Barroso-Castro C, Castaneda MDD, Serrano MDR (2022) Listed SMEs and innovation: the role of founding board members. Int Entrep Manag J 18(2):901–934. https://doi.org/10.1007/s11365-020-00709-3
Boons F, Montalvo C, Quist J, Wagner M (2013) Sustainable innovation, business models and economic performance: an overview. J Clean Prod 45:1–8. https://doi.org/10.1016/j.jclepro.2012.08.013
Bossle MB, de Barcellos MD, Vieira LM, Sauvée L (2016) The drivers for adoption of eco-innovation. J Clean Prod 113:861–872. https://doi.org/10.1016/j.jclepro.2015.11.033
Brynjolfsson E, Hitt LM (2003) Computing productivity: firm-level evidence. Rev Econ Stat 85(4):793–808. https://doi.org/10.1162/003465303772815736
Bu M, Qiao Z, Liu B (2020) Voluntary environmental regulation and firm innovation in China. Econ Model 89:10–18. https://doi.org/10.1016/j.econmod.2019.12.020
Chen H, Tian Z (2022) Environmental uncertainty, resource orchestration and digital transformation: a fuzzy-set QCA approach. J Bus Res 139:184–193. https://doi.org/10.1016/j.jbusres.2021.09.048
Chen X, Tan Y, Lin M, Zhang G, Ma W, Yang S, Peng Y (2021) How information technology investment affects green innovation in Chinese heavy polluting enterprises. Front Energy 9
Claggett JL, Karahanna E (2018) Unpacking the structure of coordination mechanisms and the role of relational coordination in an era of digitally mediated work processes. Acad Manage Rev 43(4):704–722. https://doi.org/10.5465/amr.2016.0325
De Marchi V (2012) Environmental innovation and R&D cooperation: empirical evidence from spanish manufacturing firms. Res Policy 41(3):614–623. https://doi.org/10.1016/j.respol.2011.10.002
de Sousa Jabbour ABL, Jabbour CJC, Foropon C, Godinho Filho M (2018) When titans meet–can industry 4.0 revolutionise the environmentally-sustainable manufacturing wave? The role of critical success factors. Technol Forecast Soc Change 132:18–25. https://doi.org/10.1016/j.techfore.2018.01.017
Diez-Martinez I, Peiro-Signes A, Segarra-Oña M (2022) The links between active cooperation and eco-innovation orientation of firms: a multi-analysis study. Bus Strategy Environ. https://doi.org/10.1002/bse.3145
Du X, Weng J, Zeng Q, Chang Y, Pei H (2017) Do lenders applaud corporate environmental performance? Evidence from chinese private-owned firms. J Bus Ethics 143(1):179–207. https://doi.org/10.1007/s10551-015-2758-2
Endres H, Huesig S, Pesch R (2022) Digital innovation management for entrepreneurial ecosystems: services and functionalities as drivers of innovation management software adoption. Rev Manag Sci 16(1):135–156. https://doi.org/10.1007/s11846-021-00441-4
Feng L, Zhao W, Li H, Song Y (2018) The effect of environmental orientation on green innovation: do political ties matter? Sustainability 10(12):4674. https://doi.org/10.3390/su10124674
Feng H, Wang F, Song G, Liu L (2022) Digital Transformation on Enterprise Green Innovation: effect and transmission mechanism. Int J Environ Res Public Health 19(17):10614. https://doi.org/10.3390/ijerph191710614
Ferreira JJ, Fernandes CI, Kraus S (2019) Entrepreneurship research: mapping intellectual structures and research trends. Rev Manag Sci 13(1):181–205. https://doi.org/10.1007/s11846-017-0242-3
Fiorini PDC, Jabbour CJC, de Sousa Jabbour ABL, Stefanelli NO, Fernando Y (2018) Interplay between information systems and environmental management in ISO 14001-certified companies: implications for future research on big data. Manage Decis 57(8):1883–1901. https://doi.org/10.1108/MD-07-2018-0739
Fryxell GE, Szeto A (2002) The influence of motivations for seeking ISO 14001 certification: an empirical study of ISO 14001 certified facilities in Hong Kong. J Environ Manage 65(3):223–238. https://doi.org/10.1006/jema.2001.0538
Gil-Alana LA, Škare M, Claudio-Quiroga G (2020) Innovation and knowledge as drivers of the ‘great decoupling’ in China: using long memory methods. J Innov Knowl 5(4):266–278. https://doi.org/10.1016/j.jik.2020.08.003
Giusti JD, Alberti FG, Belfanti F (2020) Makers and clusters. Knowledge leaks in open innovation networks. J Innov Knowl 5(1):20–28. https://doi.org/10.1016/j.jik.2018.04.001
Gong C, Ribiere V (2021) Developing a unified definition of digital transformation. Technovation 102:102217. https://doi.org/10.1016/j.technovation.2020.102217
González-Benito J, González‐Benito O (2005) An analysis of the relationship between environmental motivations and ISO14001 certification. Br J Manage 16(2):133–148. https://doi.org/10.1111/j.1467-8551.2005.00436.x
Graham S, Potter A (2015) Environmental operations management and its links with proactivity and performance: a study of the UK food industry. Int J Prod Econ 170:146–159. https://doi.org/10.1016/j.ijpe.2015.09.021
Hajli N (2015) Social commerce constructs and consumer’s intention to buy. J Manage Inform Syst 35(2):183–191. https://doi.org/10.1016/j.ijinfomgt.2014.12.005
He J, Su H (2022) Digital Transformation and Green Innovation of Chinese Firms: the moderating role of Regulatory pressure and International Opportunities. Int J Environ Res Public Health 19(20):13321. https://doi.org/10.3390/ijerph192013321
Jiang W, Chai H, Shao J, Feng T (2018) Green entrepreneurial orientation for enhancing firm performance: a dynamic capability perspective. J Clean Prod 198:1311–1323. https://doi.org/10.1016/j.jclepro.2018.07.104
Kang Y, He X (2018) Institutional forces and environmental management strategy: moderating effects of environmental orientation and innovation capability. Manag Organ Rev 14(3):577–605. https://doi.org/10.1017/mor.2017.56
Khanin D, Rosenfield R, Mahto RV, Singhal C (2022) Barriers to entrepreneurship: opportunity recognition vs. opportunity pursuit. Rev Manag Sci 16(4):1147–1167. https://doi.org/10.1007/s11846-021-00477-6
Klimas P, Czakon W (2022) Species in the wild: a typology of innovation ecosystems. Rev Manag Sci 16(1):249–282. https://doi.org/10.1007/s11846-020-00439-4
Kraus S, Roig-Tierno N, Bouncken RB (2019) Digital innovation and venturing: an introduction into the digitalization of entrepreneurship. Rev Manag Sci 13(3):519–528. https://doi.org/10.1007/s11846-019-00333-8
Kraus S, Jones P, Kailer N, Weinmann A, Chaparro-Banegas N, Roig-Tierno N (2021) Digital transformation: an overview of the current state of the art of research. Sage Open 11(3):21582440211047576. https://doi.org/10.1177/21582440211047576
Kraus S, Durst S, Ferreira JJ, Veiga P, Kailer N, Weinmann A (2022) Digital transformation in business and management research: an overview of the current status quo. Int J Inf Manage 63:102466. https://doi.org/10.1016/j.ijinfomgt.2021.102466
Kunapatarawong R, Martínez-Ros E (2016) Towards green growth: how does green innovation affect employment? Res Policy 45(6):1218–1232. https://doi.org/10.1016/j.respol.2016.03.013
Lee KH, Min B (2015) Green R&D for eco-innovation and its impact on carbon emissions and firm performance. J Clean Prod 108:534–542. https://doi.org/10.1016/j.jclepro.2015.05.114
Lee MT, Suh I (2022) Understanding the effects of Environment, Social, and governance conduct on financial performance: arguments for a process and integrated modelling approach. Sustain Technol Entrep 1(1):100004. https://doi.org/10.1016/j.stae.2022.100004
Li W, Zheng M (2016) Is it substantive innovation or strategic innovation? ——Impact of macroeconomic policies on micro-enterprises’ innovation. Econ Res J (In Chinese) 04:60–73
Li D, Zheng M, Cao C, Chen X, Ren S, Huang M (2017) The impact of legitimacy pressure and corporate profitability on green innovation: evidence from China top 100. J Clean Prod 141:41–49. https://doi.org/10.1016/j.jclepro.2016.08.123
Li-Ying J, Mothe C, Nguyen TTU (2018) Linking forms of inbound open innovation to a driver-based typology of environmental innovation: evidence from french manufacturing firms. Technol Forecast Soc Change 135:51–63. https://doi.org/10.1016/j.techfore.2017.05.031
Melville NP (2010) Information systems innovation for environmental sustainability. MIS Q 34(1):1–21. https://doi.org/10.2307/20721412
Meyskens M, Carsrud AL (2013) Nascent green-technology ventures: a study assessing the role of partnership diversity in firm success. Small Bus Econ 40:739–759. https://doi.org/10.1007/s11187-011-9400-1
Nambisan S, Wright M, Feldman M (2019) The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes. Res Policy 48(8):103773. https://doi.org/10.1016/j.respol.2019.03.018
Ortigueira-Sánchez LC, Welsh DH, Stein WC (2022) Innovation Drivers for Export Performance. Sustain Technol Entrep 1(2):100013. https://doi.org/10.1016/j.stae.2022.100013
Pagoropoulos A, Pigosso DC, McAloone TC (2017) The emergent role of digital technologies in the Circular Economy: a review. Procedia CIRP 64:19–24. https://doi.org/10.1016/j.procir.2017.02.047
Parker LD (2000) Green strategy costing: early days. Aust Acc Rev 10(20):46–55. https://doi.org/10.1111/j.1835-2561.2000.tb00054.x
Potoski M, Prakash A (2005) Green clubs and voluntary governance: ISO 14001 and firms’ regulatory compliance. Am J Political Sci 49(2):235–248. https://doi.org/10.1111/j.0092-5853.2005.00120.x
Prajogo D, Tang AK, Lai KH (2012) Do firms get what they want from ISO 14001 adoption?: an australian perspective. J Clean Prod 33:117–126. https://doi.org/10.1016/j.jclepro.2012.04.019
Quan X, Ke Y, Qian Y, Zhang Y (2023) CEO foreign experience and green innovation: evidence from China. J Bus Ethics 182:535–557. https://doi.org/10.1007/s10551-021-04977-z
Ramanathan R, Black A, Nath P, Muyldermans L (2010) Impact of environmental regulations on innovation and performance in the UK industrial sector. Manage Decis 48(10):1493–1513. https://doi.org/10.1108/00251741011090298
Rennings K (2000) Redefining innovation—eco-innovation research and the contribution from ecological economics. Ecol Econ 32(2):319–332. https://doi.org/10.1016/S0921-8009(99)00112-3
Rennings K, Ziegler A, Ankele K, Hoffmann E (2006) The influence of different characteristics of the EU environmental management and auditing scheme on technical environmental innovations and economic performance. Ecol Econ 57(1):45–59. https://doi.org/10.1016/j.ecolecon.2005.03.013
Rubio-Andrés M, del Ramos-González M, Sastre-Castillo M MÁ (2022) Driving innovation management to create shared value and sustainable growth. Rev Manag Sci 16(7):2181–2211. https://doi.org/10.1007/s11846-022-00520-0
Saarikko T, Westergren UH, Blomquist T (2017) The internet of things: are you ready for what’s coming? Bus Horiz 60(5):667–676. https://doi.org/10.1016/j.bushor.2017.05.010
Sahoo S, Kumar A, Mani V, Venkatesh VG, Kamble S (2022) Big Data Management Activities for Sustainable Business Performance during the COVID-19 pandemic: evidence from the indian Pharmaceutical Sector. IEEE T Eng Manage. https://doi.org/10.1109/TEM.2022.3174782
Song W, Yu H (2018) Green innovation strategy and green innovation: the roles of green creativity and green organizational identity. Corp Soc Responsib Environ Manag 25(2):135–150. https://doi.org/10.1002/csr.1445
Song Y, Escobar O, Arzubiaga U, De Massis A (2022) The digital transformation of a traditional market into an entrepreneurial ecosystem. Rev Manag Sci 16(1):65–88. https://doi.org/10.1007/s11846-020-00438-5
Srivastava RK, Fahey L, Christensen HK (2001) The resource-based view and marketing: the role of market-based assets in gaining competitive advantage. J Manage 27(6):777–802. https://doi.org/10.1177/014920630102700610
Teece DJ, Pisano G, Shuen A (1997) Dynamic capabilities and strategic management. Strateg Manag J 18(7):509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7%3C509::AID-SMJ882%3E3.0.CO;2-Z
Tipu SAA (2022) Organizational change for environmental, social, and financial sustainability: a systematic literature review. Rev Manag Sci 16(6):1697–1742. https://doi.org/10.1007/s11846-021-00494-5
Tong TW, He W, He ZL, Lu J (2014) Patent regime shift and firm innovation: Evidence from the second amendment to China’s patent law. In: Academy of Management Proceedings, 2014(1):14174. Briarcliff Manor, NY 10510: Academy of Management. https://doi.org/10.5465/ambpp.2014.14174abstract
Westerman G, Bonnet D, McAfee A (2014) Leading digital: turning technology into business transformation. Harvard Business Press, Boston
Xie X, Huo J, Qi G, Zhu KX (2015) Green process innovation and financial performance in emerging economies: moderating effects of absorptive capacity and green subsidies. IEEE T Eng Manage 63(1):101–112. https://doi.org/10.1109/TEM.2015.2507585
Yang Y, Jiang Y (2023) Does suppliers’ slack influence the relationship between buyers’ environmental orientation and green innovation? J Bus Res 157:113569. https://doi.org/10.1016/j.jbusres.2022.113569
Zameer H, Wang Y, Yasmeen H, Mubarak S (2022) Green innovation as a mediator in the impact of business analytics and environmental orientation on green competitive advantage. Manage Decis 60(2):488–507. https://doi.org/10.1108/MD-01-2020-0065
Zhang JA, Walton S (2017) Eco-innovation and business performance: the moderating effects of environmental orientation and resource commitment in green‐oriented SMEs. R D Manag 47(5):E26–E39. https://doi.org/10.1111/radm.12241
Zhang F, Zhu L (2019) Enhancing corporate sustainable development: stakeholder pressures, organizational learning, and green innovation. Bus Strategy Environ 28(6):1012–1026. https://doi.org/10.1002/bse.2298
Zhang T, Shi ZZ, Shi YR, Chen NJ (2021) Enterprise digital transformation and production efficiency: mechanism analysis and empirical research. Econ Res-Ekon Istraz 35(1):2781–2792. https://doi.org/10.1080/1331677X.2021.1980731
Zhang XE, Teng X, Le Y, Li Y (2022) Strategic orientations and responsible innovation in SMEs: the moderating effects of environmental turbulence. Bus Strategy Environ. https://doi.org/10.1002/bse.3283
Zhou X, Jia M, Wang L, Sharma GD, Zhao X, Ma X (2022) Modelling and simulation of a four-group evolutionary game model for green innovation stakeholders: contextual evidence in lens of sustainable development. Renew Energy 197:500–517. https://doi.org/10.1016/j.renene.2022.07.068
Ziegler A, Nogareda JS (2009) Environmental management systems and technological environmental innovations: exploring the causal relationship. Res Policy 38(5):885–893. https://doi.org/10.1016/j.respol.2009.01.020
Funding
This work was supported by the Zhejiang Provincial Natural Science Foundation of China under Grant No. LQ23G020004 and National Social Science Fund of China under Grant Number 21BTJ066.
Author information
Authors and Affiliations
Contributions
QH Writing – review & editing, Writing – original draft, Methodology, Formal analysis, Conceptualization. SRN Data curation, Methodology, Writing – original draft. DBC Writing – original draft, Formal analysis, Data curation.
Corresponding author
Additional information
Publisher’s Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.
About this article
Cite this article
He, Q., Ribeiro-Navarrete, S. & Botella-Carrubi, D. A matter of motivation: the impact of enterprise digital transformation on green innovation. Rev Manag Sci 18, 1489–1518 (2024). https://doi.org/10.1007/s11846-023-00665-6
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11846-023-00665-6