FThe Impact of Digital Transformation on Green Innovation in Enterprises

Digital transformation in enterprises is a vital aspect of the digital economy and a contemporary trend that significantly contributes to the promotion of green innovation. This study analyzes data from Chinese manufacturing firms between 2017 and 2021, utilizing digital transformation indicators sourced from the CSMAR database. The number of green patents is employed as a measure of a company’s green innovation capability, allowing researchers to empirically investigate the impact of digital transformation on green innovation and its underlying mechanisms. The findings indicate that: (1) Digital transformation enhances a firm’s green innovation, with this conclusion remaining robust even after substituting the explained variables in various sensitivity tests. (2) In terms of mechanisms, digital transformation fosters green innovation by improving internal control and increasing the number of R&D personnel. This paper examines the effects and mechanisms of digital transformation on green innovation from an internal governance perspective, providing new evidence for the intrinsic link between these two phenomena. In light of the rapid growth of the digital economy, the conclusions drawn from this research offer valuable policy insights for accelerating digital transformation and achieving sustainable green innovation in enterprises.