Digital technology and ESG performance in ecosystem-based business models: perspective of environmental regulation and green innovation in China

ABSTRACT

Currently, green innovation shows increasing uncertainty, and the connotation of firm development has been undergoing profound changes. Accordingly, this study attempts to investigate the effect of digital technology on ESG performance and its mechanism of action, and the analysis is tested using data from Chinese-listed firms from 2011 to 2019. Empirical studies from China suggest that digital technology is capable of significantly enhancing ESG performance. As revealed by the mechanism analysis, regional environmental regulation and regional green innovation can significantly increase the effect of digital technology.

KEYWORDS:

• China
• ecosystem-based business models
• ESG performance
• digital technology adoption
• regional environmental regulation
• regional green innovation

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

The work was supported by the The National Social Science Foundation (NSSF) [20BJY189]; The Provincial Philosophy and Social Science Planning Project (PPSSPP) [21NDJC319YBM]; The National Social Science Foundation (NSSF) [21BJY054].

Notes on contributors

Qunyang Du

Qunyang Du is a P rofessor in Economics at the School of Economics, Zhejiang University of Technology, China. He received his PhD from Zhejiang University, China. His current research is focused on international direct investment, the uncertainty of economic policy, the multinational entrepreneurial orientation of enterprises, the internationalization performance of enterprises and the evolution of the international trade model. He has published in international peer-reviewed journals such as the Journal of Environmental Management and Journal of Global Information Management, etc.

Zhennan Sun

Zhennan Sun is a PhD student at the School of Economics, Zhejiang University of Technology, China. His current research focuses on digital economy and enterprise digital transformation, enterprise innovation performance and green finance, and capital market opening.

Suquan Chen

Suquan Chen is a postgraduate student at the School of Economics, Zhejiang University of Technology, China. Her current research focuses on environmental regulations, international direct investment, firm innovation, mergers and acquisitions from emerging countries.