Impact of Corporate ESG Performance on Open Green Innovation in the Context of Digital Transformation

Abstract

In the context of digital transformation, corporate environmental, social, and governance (ESG) performance plays a critical role in promoting open green innovation. Drawing on data from A-share listed companies from 2011 to 2022 in China, this paper examines the impact of ESG performance on open green innovation during the digital transformation. The results reveal that good ESG performance significantly promotes enterprises’ open green innovation, and this conclusion remains valid after several robustness tests. Moreover, the positive effect is more pronounced in regions with higher levels of digital economy development and among enterprises with greater digitization. Heterogeneity analysis reveals that ESG performance more strongly promotes open green innovation in three types of enterprises: high-tech enterprises, those in high-trust regions, and those with strict financing constraints. Based on these findings, enterprises should establish modern ESG management systems, fully leverage the dividends of regional digital economy development, and actively leverage digital transformation to enhance open green innovation ecosystems and ESG capability building.

Keywords

ESG performance / open green innovation / regional digital economy development / corporate digital transformation

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Higher Education Press