Impact of environmental performance on intelligent transformation in Chinese manufacturing enterprises

Intelligent transformation has become a key driver of enterprise development. It enables firms to improve operational efficiency, enhance innovation capabilities, and maintain long-term competitiveness. This study investigates the impact of environmental performance on the intelligent transformation of manufacturing firms in China. It uses the panel data from A-share listed manufacturing companies covering the period from 2010 to 2023. Environmental performance is measured using the environmental sub-score from the CNRDS ESG rating system. The analysis investigates both the direct impact of environmental performance on firms' intelligent upgrading and the mediating effects of external market environments, including product market, policy environment, and capital market. The empirical findings reveal that higher environmental performance significantly enhances the level of intelligent transformation, highlighting its increasingly key role in promoting technological progress and smart development in the manufacturing sector. This study contributes to the theoretical integration of environmental governance and digital transformation, offering practical implications for manufacturing firms seeking to align sustainability with innovation strategies under China's dual transformation framework.