Digital economy, dynamic capabilities, and corporate green development

Xiaohan Li, Jialu You and Ye Qing

Finance Research Letters, 2025, vol. 73, issue C

Abstract: This study examines the impact of regional digital economic development on corporate green performance in China, focusing on the moderating role of organizational dynamic capabilities. Analyzing data from Chinese A-share listed companies (2008–2022), we find a positive relationship between digital advancement and firm-level environmental practices. Organizational dynamic capabilities, particularly absorptive capacity, significantly enhance this relationship. Heterogeneity analysis reveals stronger effects in state-owned enterprises and Central-Western regions, suggesting varied responses across ownership structures and geographic areas. These findings contribute to understanding digitalization's role in corporate sustainability and offer insights for policy and strategy formulation. The study highlights the importance of developing specific organizational capabilities to leverage digital technologies for environmental improvements and emphasizes the need for targeted policies to address disparities in digital economic development benefits. As economies continue to digitalize, these insights become crucial for promoting sustainable development in the digital age.

Keywords: Digital economy; Dynamic capability; Green development; Corporate sustainability (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612324014971
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:73:y:2025:i:c:s1544612324014971

DOI: 10.1016/j.frl.2024.106468

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().