Research on the Impact of Corporate ESG Performance on Sustained Innovation in the VUCA Context: Evidence from China

In recent years, corporate innovation has faced growing pressures from macroeconomic fluctuations and intensifying industry competition, making the maintenance of uninterrupted innovation increasingly crucial. This study selected Chinese listed firms from 2015 to 2022 as samples and adopted a panel fixed-effect model to examine the impact of corporate ESG performance on sustained innovation, with particular attention to external environmental pressures, including macroeconomic uncertainty, industry competition, and market attention. The results demonstrate that corporate ESG performance significantly promotes corporate sustained innovation. Mechanism analyses indicate that from the dual perspectives of resource effects and governance effects, ESG performance primarily enhances sustained innovation by increasing investment in R&D funding and personnel, as well as avoiding managerial myopia. Specifically, macroeconomic uncertainty dampens the positive effect of ESG performance, whereas, under industry competitive and market scrutiny pressures, the beneficial impact of ESG performance on sustained innovation becomes more evident. The research findings expand the internal drivers for sustained innovation, enrich the study of economic consequences of ESG performance, and clarify the differentiated moderating effects of various external pressures under VUCA scenarios. By integrating internal drivers and external complex environments, the paper offers practical insights for firms to leverage ESG practices for innovation resilience and long-term growth, particularly under dynamic market conditions.