Research on the impact of ecological innovations in China’s optoelectronics industry on corporate ESG under the background of “Double Carbon”

This study investigates the eco-innovations' impact on corporate Environmental, Social, and Governance (ESG) performance in China's optoelectronics industry in the context of the nation's "Double Carbon" strategy to achieve carbon neutrality. Drawing upon the Resource-Based View (RBV) and Stakeholder Theory (ST), a conceptual model was developed to explore how internal capabilities, and external pressures drive eco-innovation adoption. We employed structural equation modeling (SEM) using Smart PLS statistics on data collected from 258 managerial staff to empirically test the theoretical model. The findings reveal that market competitiveness (H1: b = 0.437, P = 0.000), stakeholder engagement (H2: b = 0.139, P = 0.048), government incentives (H3: b = 0.180, P = 0.009), organizational competitiveness (H4: b = 0.090, P = 0.007), and advanced technologies adoption (H5: b = 0.121, P = 0.001) significantly drive eco-innovation adoption. Eco-innovation, in turn, demonstrates a strong positive impact on all three dimensions of ESG performance (H6: b = 0.314, P = 0.000). Moreover, technology disruption significantly moderates the relationship between eco-innovation and ESG outcomes (H7: b = 0.086, P = 0.006), strengthening the effect particularly on environmental performance. The results highlight the strategic importance of internal capabilities and environmental values in shaping sustainable practices in high-tech SMEs. The study contributes to the literature by integrating two theoretical lenses and offering practical implications for SME managers and policymakers aiming to enhance ESG performance through innovation. The policy implication implies that introduction of specific government incentives and the supply of support to high-technological SMEs can lead to faster adoption of eco-innovation to promote better ESG results and support the achievement of the goals of the Chinese plan of Carbon Dual.