Does ESG Performance in the Construction Industry Have an Impact on Digital Technology Innovation? A Stakeholder Theory Perspective

The sustainable growth of the construction industry has brought the ESG performance of construction firms into the spotlight, with its impact on business operations becoming increasingly significant. However, the question of whether ESG performance can foster digital technology innovation remains unexplored. Therefore, based on stakeholder theory, this study utilizes digital technology patent data from listed construction firms in China between 2009 and 2021 to examine the relationship between ESG performance and digital technology innovation output among construction firms. Additionally, the study investigates the impact of firm age, profitability, and size on the number of digital technology patents filed. The findings indicate a positive correlation between ESG performance and digital technology innovation output, suggesting that firms with superior ESG records prioritize sustainable development and social responsibility. This positive image may attract more investors and collaborators, thus providing more resources and support for their digital technology innovation efforts. Understanding the mechanisms behind ESG’s impact on digital technology innovation can help construction industry firms integrate sustainable development concepts, mitigate environmental impacts, enhance social responsibility, and achieve economic, social, and environmental harmony. This not only enhances the competitiveness of construction industry firms but also facilitates the transformation and upgrading of the industry.