How Digital Transformation Affect Green Innovation Performance of MNEs: From the Organizational Learning Perspective

Shaojun Zhou (), Qian Feng and Binwu Cheng
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Shaojun Zhou: School of Safety Science and Emergency Management, Wuhan University of Technology, Wuhan 430070, China
Qian Feng: School of Safety Science and Emergency Management, Wuhan University of Technology, Wuhan 430070, China
Binwu Cheng: School of Safety Science and Emergency Management, Wuhan University of Technology, Wuhan 430070, China

Sustainability, 2025, vol. 17, issue 21, 1-21

Abstract: The digital transformation of multinational enterprises (MNEs) in emerging economies has gained increasing interest in academic circles and business communities. However, how and when digital transformation affects green innovation in MNEs remains unknown. Using the theory of organizational learning, this study explores the relationship between digital transformation and the green innovation performance of MNEs, reveals the underlying theoretical mechanisms (i.e., absorptive capacity), and identifies the moderating role of the degree of internationalization and state ownership. Data from Chinese listed MNEs from 2010 to 2019 were used to examine mediating and moderating effects, and robustness tests were performed. The results show that (1) digital transformation can enhance green innovation in MNEs by improving their absorptive capacity; (2) a high degree of internationalization can strengthen the positive relationship between digital transformation and absorptive capacity; and (3) the positive effect of digital transformation on absorptive capacity is stronger in state-owned MNEs than in private MNEs. This study provides a comprehensive theoretical framework for understanding how and when digital transformation affects green innovation in MNEs. The results provide insights into digital transformation and can inform policies regarding green innovation performance and sustainable development in firms.

Keywords: digital transformation; emerging economies; green innovation; absorptive capacity; organizational learning theory (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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