Digital transformation, ESG performance and enterprise innovation.

Area of Science:

• Business and Management
• Economics
• Information Systems

Background:

• The global economy is shifting towards a digital intelligence era, necessitating deep integration with the real economy.
• Chinese government policy prioritizes developing the digital intelligence economy and its integration with traditional industries.
• Digital intelligence transformation and ESG performance are crucial for enterprises navigating innovation-driven competition.

Purpose of the Study:

• To empirically investigate the impact of digital transformation and ESG performance on corporate innovation.
• To analyze the synergistic relationship between digital intelligence transformation and ESG in enhancing innovation.
• To examine the role of these factors in the context of China's evolving economy.

Main Methods:

• Analysis of A-share listed companies from 2004 to 2023.
• Econometric modeling to assess the relationship between digitalization, ESG, and innovation performance.
• Investigating the moderating and mediating effects of digital transformation and ESG.

Main Results:

• An inverted U-shaped relationship was found between enterprise digitalization and innovation performance.
• ESG performance demonstrates a positive and significant influence on corporate innovation.
• Digital transformation and ESG performance exhibit a positive reinforcing effect, collectively boosting innovation.

Conclusions:

• Digital intelligence transformation and ESG are vital drivers of corporate innovation performance.
• The interplay between digitalization and ESG is crucial for sustainable competitive advantage.
• Enterprises should strategically integrate digital transformation with robust ESG practices to maximize innovation outcomes.