The Impact of Managerial Myopia on Corporate Green Innovation

Whether managerial myopia shapes corporate green innovation has attracted surprisingly little attention. This paper examines that question directly. Evidence comes from 33,813 firm-year observations on 4,661 A-share firms listed in Shanghai and Shenzhen between 2010 and 2021, and the analysis covers three issues: the effect of managerial myopia on green innovation, the mediating channels of strategic alliances and R&D investment, and the moderating role of digital transformation. Managerial myopia turns out to hold green innovation back. A large part of the damage is indirect: myopic managers are less inclined to build alliances with other firms and they cut R&D spending, and both shifts dampen green innovation. Digital transformation pulls in the other direction, weakening the negative myopia-green innovation link and easing the myopia-alliance and myopia-R&D relationships as well. By placing managers' psychological traits at the center of the analysis, this paper enriches work on the antecedents of green innovation and offers firms practical guidance for green transformation and sustainable development.