From digital transformation to energy efficiency: ownership concentration’s hidden role in driving climate solutions

Abstract This study examines the impact of digital transformation (DT) on energy consumption and explores the moderating role of ownership concentration (OC). Using firm-level data from Chinese A-share listed companies between 2014 and 2023, the findings reveal that DT significantly reduces EC. This result is robust when using artificial intelligence as a proxy for DT. Contrary to the typical view that OC often plays a negative role in corporate governance, this study finds that OC amplifies the energy-saving effects of DT. High ownership concentration enhances decision-making efficiency and aligns strategic actions with long-term sustainability goals. Additionally, DT shows stronger energy-reduction effects in high-tech and high-pollution industries, in which energy efficiency is critical. To address endogeneity concerns, two-stage least squares and system GMM estimations are employed, and the results remain consistent. This study contributes to the literature by integrating the technology-organization-environment framework with dynamic capabilities and stakeholder theories, advancing the understanding of how governance mechanisms and technological innovation interact to optimize energy saving. The findings provide actionable insights for policymakers and corporate leaders on leveraging DT and OC to enhance energy efficiency and contribute to sustainability. These results also offer a solid foundation for future research at the intersection of technology, management, and sustainability.