Search Results (1,227)

We investigate whether China’s Value-Added Tax (VAT) Credit Refund policy influences firms’ sustainable development capability (SDC), which reflects innovation-driven growth and green development. Exploiting the 2018 implementation of the VAT Credit Refund policy as a quasi-natural experiment, we employ a difference-in-differences (DID) approach and find causal evidence that the policy significantly enhances firms’ SDC. This suggests that fiscal instruments like VAT refunds are valued by firms as drivers of long-term sustainable and high-quality development. Our mediating analyses further reveal that the policy promotes firms’ SDC by strengthening artificial intelligence (AI) capabilities and facilitating intelligent transformation. This mechanism “AI Capability Building—Intelligent Transformation” aligns with the socio-technical systems theory (STST), highlighting the interactive evolution of technological and social subsystems in shaping firm capabilities. The heterogeneity analyses indicate that the positive effect of VAT Credit Refund policy on SDC is more pronounced among small-scale and non-high-tech firms, firms with lower perceived economic policy uncertainty, higher operational diversification, lower reputational capital, and those located in regions with a higher level of marketization. We also find that the policy has persistent long-term effects, with improved SDC associated with enhanced ESG performance and green innovation outcomes. Our findings have important implications for understanding the SDC through the lens of STST and offer policy insights for deepening VAT reform and promoting intelligent and green transformation in China’s enterprises. Full article

In the context of both domestic and international economic landscapes, regional policy has emerged as an increasingly influential factor shaping the developmental trajectories of Chinese enterprises. Despite its growing significance, the extant literature lacks a comprehensive and systematically visualized synthesis that encapsulates the scope and trends of research in this domain. This study addresses this critical gap by conducting an integrative bibliometric and qualitative review of the academic output related to regional policy and Chinese firm growth. Drawing on a final dataset comprising 3428 validated academic publications—selected from an initial pool of 3604 records retrieved from the Web of Science Core Collection between 1991 and 2022, the research employs a two-stage methodological framework. In the first phase, advanced bibliometric tools, and software applications, including RStudio, Bibliometrix, VOSviewer, and CitNetExplorer, are utilized to implement techniques such as keyword co-occurrence analysis, thematic clustering, and the tracing of thematic evolution over time. These methods facilitate rigorous data cleansing, breakpoint identification, and the visualization of intellectual structures and emerging research patterns. In the second phase, a targeted qualitative review is conducted to evaluate the influence of regional policies on Chinese firms across three critical stages of business development: start-up, expansion, and maturity. The findings reveal that regional policy interventions generally exert a positive influence on firm performance throughout all stages of development. Notably, a significant concentration of citation activity occurred prior to 2017; however, post-2017, the volume of scholarly publications, journal-level impact (as measured by h-index), and author-level influence experienced a marked increase. Among the 3428 analyzed publications, a substantial portion—2259 articles—originated from Chinese academic institutions, highlighting the strong domestic research interest in the subject. Furthermore, since 2015, there has been a discernible shift in keyword co-occurrence trends, with increasing scholarly attention directed towards sustainable development issues, particularly those related to carbon dioxide emissions and green innovation, reflecting evolving policy priorities and environmental imperatives. Full article

This study explores whether sustainability achievements—proxied through ESG (environmental, social, and governance) reporting—are associated with superior financial performance in Latvia’s manufacturing sector, where ESG maturity remains low and institutional readiness is still emerging. Building on stakeholder, legitimacy, signal, slack resources, and agency theories, this study applies a mixed-method approach (that consists of two analytical stages) suited to the limited availability and reliability of ESG-related data in the Latvian manufacturing sector. Financial indicators from three large firms—AS MADARA COSMETICS, AS Latvijas Finieris, and AS Valmiera Glass Grupa—are compared with industry averages over the 2019–2023 period using independent sample T-tests. ESG integration is evaluated through a six-stage conceptual schema ranging from symbolic compliance to performance-driven sustainability. The results show that AS MADARA COSMETICS, which demonstrates advanced ESG integration aligned with international standards, significantly outperforms its industry in all profitability metrics. In contrast, the other two companies remain at earlier ESG maturity stages and show weaker financial performance, with sustainability disclosures limited to general statements and outdated indicators. These findings support the synergy hypothesis in contexts where sustainability is internalized and operationalized, while also highlighting structural constraints—such as resource scarcity and fragmented data—that may limit ESG-financial alignment in post-transition economies. This study offers practical guidance for firms seeking competitive advantage through strategic ESG integration and recommends policy actions to enhance ESG transparency and performance in Latvia, including performance-based reporting mandates, ESG data infrastructure, and regulatory alignment with EU directives. These insights contribute to the growing empirical literature on ESG effectiveness under constrained institutional and economic conditions. Full article

This paper examines the effect of digital innovation on cost stickiness in manufacturing firms, focusing on the underlying mechanisms and contextual factors. Using data from Chinese A-share listed manufacturing firms from 2012 to 2023, we find that, first, for each one-unit increase in the level of digital technology, the cost stickiness index of enterprises decreases by an average of 0.4315 units, primarily through digital process innovation and digital business model innovation, whereas digital product innovation does not exhibit a statistically significant impact. Second, manufacturing servitization and the optimization of human capital structure are identified as key mediating mechanisms. Digital innovation promotes servitization by transitioning firms from product-centric to service-oriented business models, thereby reducing fixed costs and improving resource flexibility. It also optimizes human capital by increasing the proportion of high-skilled employees and reducing labor adjustment costs. Third, the effect of digital innovation on cost stickiness is found to be heterogeneous. Firms with high financing constraints benefit more from the cost-reducing effects of digital innovation due to improved resource allocation efficiency. Additionally, mid-tenure executives are more effective in leveraging digital innovation to mitigate cost stickiness, as they balance short-term performance pressures with long-term strategic investments. These findings contribute to the understanding of how digital transformation reshapes cost behavior in manufacturing and provide insights for policymakers and firms seeking to achieve sustainable development through digital innovation. Full article

This study investigates the role of Big Data Analytics Capabilities (BDACs) in ambidexterity explorative innovation (EXPLRI) and exploitative (EXPLOI) innovation for achieving a sustainable performance (SP) in the manufacturing sector of a resource-constrained developing economy. While a BDAC has been widely linked to innovation in developed economies, its effectiveness in developing contexts shaped by indigenous innovation practices like Jugaad remains underexplored. Anchored in the Resource-Based View (RBV) and Dynamic Capabilities (DC) theory, we propose a model where the BDAC enhances both EXPLRI and EXPLOI, which subsequently leads to an improved sustainable performance. We further examine the Jugaad capability as a cultural moderator. Using survey data from 418 manufacturing firms and analyzed via Partial Least Squares Structural Equation Modeling (PLS-SEM), results confirm that BDA capabilities significantly boost both types of innovations, which positively impact sustainable performance dimensions. Notably, Jugaad positively moderates the relationship between EXPLOI and financial, innovation, and operational performance but negatively moderates the link between EXPLRI and innovation performance. These findings highlight the nuanced influence of culturally embedded innovation practices in BDAC-driven ecosystems. This study contributes by extending the RBV–DC framework to include cultural innovation capabilities and empirically validating the contingent role of Jugaad in enhancing or constraining innovation outcomes. This study also validated the Jugaad capability measurement instrument for the first time in the context of Pakistan. For practitioners, aligning data analytics strategies with local innovative cultures is vital for sustainable growth in emerging markets. Full article

As a critical external mechanism driving green innovation, institutional and competitive pressure often coexist and jointly shape firms’ strategic responses. However, existing studies primarily focus on the individual effects of these pressures, with limited attention to their interactive impacts on green innovation. Drawing on optimal distinctiveness theory, this study proposes a “pressure–response” analytical framework that classifies institutional and competitive pressure combinations into congruent (i.e., high–high or low–low) and incongruent (i.e., high–low or low–high) pressure contexts based on their relative intensities. It further examines how these distinct configurations affect two types of green innovation: strategic green innovation (StrGI) and substantive green innovation (SubGI). Using panel data from Chinese A-share listed firms between 2010 and 2022, the empirical results reveal that under congruent pressure contexts, the alignment of institutional and competitive pressures tends to suppress green innovation. In contrast, under incongruent contexts, the misalignment between the two pressures significantly promotes green innovation. Regarding innovation motivation, the high institutional–low competitive pressure context more significantly promotes StrGI, while the low institutional–high competitive pressure context has a more prominent effect on SubGI. In addition, this study also investigates the mediating roles of StrGI and SubGI on ESG performance. The findings provide theoretical support and policy implications for improving green transition policies and institutional frameworks, as well as promoting sustainable corporate development. Full article

This study uses financial data from 872 Chinese listed companies (2018–2022). It tests the triple dividend effect and threshold effect of China’s environmental protection tax (EPT) using high-dimensional fixed effects models and panel threshold models. We document that (1) EPT creates an environmental dividend for Chinese listed companies. It significantly reduces pollution emissions. A 1-unit tax increase reduces LnTPPE by 2.5%. (2) EPT creates a significant innovation dividend. It forces enterprises to improve the quality of authorized patents. A 1-unit tax increase raises patent technological complexity by 0.79%. (3) EPT creates an economic dividend. It significantly improves firm performance. A 1-unit tax increase raises relative corporate revenue by 38.1%. (4) EPT exerts significant threshold effects on micro-level triple dividend outcomes among Chinese listed companies. A heterogeneity analysis shows significant differences in threshold effects between non-heavily polluting and heavily polluting industries. This study confirms that China’s EPT generates a micro-level triple dividend effect alongside coexisting threshold effects for listed companies. This provides literature references for China to design and implement differentiated policies and offers a quantitative empirical case for implementing globally sustainable EPT strategies. Full article

In this study, we examine the impact of mergers and acquisitions (M&As) on firm environmental performance, aiming to address the gap in research and guide firms, investors, and policymakers toward more environmentally conscious decision-making in M&A. Using panel data from Chinese A-share listed firms (2008–2022), we estimate a two-way fixed effect model. The Propensity Score Matching and the instrumental variable method address potential endogeneity concerns, and robustness checks validate the findings. We found that M&As have a significantly positive effect on firm environmental performance, with heterogeneous impacts across regions, industries, and M&A types. The environmental benefits are most pronounced in heavily polluting industries and hybrid M&A deals. Eastern China shows more modest improvements. The results of mechanism tests revealed that M&As enhance environmental performance primarily by boosting total factor productivity and fostering innovation. This study offers a novel perspective by linking M&A activities to environmental sustainability, enriching the literature on both M&As and corporate environmental performance. We show that even conventional M&A deals (not sustainability-focused) can improve environmental performance through operational synergies. Expanding beyond polluting industries, we reveal how sector characteristics shape M&A’s environmental impacts. We identify practical mechanisms through which standard M&A activities can advance sustainability goals, helping firms balance economic and environmental objectives. It provides empirical evidence from China, an emerging market with distinct institutional and regulatory contexts. The findings offer guidance for firms engaging in M&A to strategically improve sustainability performance. Policymakers can leverage these insights to design incentives for M&A in pollution-intensive industries, aligning economic growth with environmental goals. By demonstrating that M&As can enhance environmental outcomes, this study supports the potential for market-driven mechanisms to contribute to broader societal sustainability objectives, such as reduced industrial pollution and greener production practices. Full article

Amid intensifying global ESG regulations and the expanding influence of green finance, China’s digital economy policies have emerged as key institutional instruments for promoting corporate sustainability. Leveraging the implementation of the National Big Data Comprehensive Pilot Zone as a quasi-natural experiment, this study utilizes panel data of Chinese listed firms from 2009 to 2023 and applies multi-period Difference-in-Differences (DID) and Spatial DID models to rigorously identify the policy’s effects on corporate ESG performance. Empirical results indicate that the impact of digital economy policy is not exerted through a direct linear pathway but operates via three institutional mechanisms, enhanced information transparency, eased financing constraints, and expanded fiscal support, collectively constructing a logic of “institutional embedding–governance restructuring.” Moreover, disruptive technological innovation significantly amplifies the effects of the transparency and fiscal mechanisms, but exhibits no statistically significant moderating effect on the financing constraint pathway, suggesting a misalignment between innovation heterogeneity and financial responsiveness. Further heterogeneity analysis confirms that the policy effect is concentrated among firms characterized by robust governance structures, high levels of property rights marketization, and greater digital maturity. This study contributes to the literature by developing an integrated moderated mediation framework rooted in institutional theory, agency theory, and dynamic capabilities theory. The findings advance the theoretical understanding of ESG policy transmission by unpacking the micro-foundations of institutional response under digital policy regimes, while offering actionable insights into the strategic alignment of digital transformation and sustainability-oriented governance. Full article

This study examines the complex relationship between environmental, social, and governance (ESG) and financial performance in the automotive industry, with a particular focus on how financial constraints shape this relationship. Using a global data set for the period 2008 to 2023 and employing a range of panel data techniques, including those addressing endogeneity concerns, we find that higher ESG scores positively affect financial performance. Specifically, a one-point rise in ESG score corresponds to an estimated 1–1.7% increase in the market-to-book ratio, with the effect reaching approximately 1.6% for firms facing financial constraints. These findings highlight the economic significance of ESG engagement, particularly for resource-constrained companies. The novelty of this study is that it focuses on the automotive sector, an industry with limited ESG-specific research, and that it makes a theoretical contribution by linking ESG performance outcomes to financial constraints, an angle largely overlooked in prior research. The findings offer critical policy insights, emphasizing the strategic importance of ESG initiatives for value creation under varying financial conditions. Full article

Green innovation is a key driver of sustainable development, yet Chinese firms, as major innovators, still underperform in this area. While directors play a central role in corporate governance, the influence of their green backgrounds on green innovation remains underexplored. This study investigates how directors with green backgrounds impact corporate green innovation. We consider both the appointment and the power of green-background directors. At the same time, we use the manually collected data from China’s heavily polluting listed firms between 2014 and 2020. We also conduct regulatory effect and mediation effect analyses. We found the following: (1) Green-background directors significantly promote corporate green innovation. Appointing directors with environmental expertise enhances firms’ green innovation performance, and this positive effect strengthens as these directors’ power increases. (2) Mechanistically, green-background directors facilitate green innovation by raising firms’ environmental awareness and helping secure government environmental subsidies. (3) Contextual influences matter. Moderating effect tests reveal that the impact of green-background directors is strengthened in firms with diligent boards, firm size, and green investors, but weakened in regions with higher marketization levels. (4) Further analysis shows that green-background directors enhance both strategic and substantive green innovation while also ensuring the long-term continuity of green innovation efforts. Full article

In the context of small and medium-sized enterprises (SMEs), organizational resilience has emerged as a critical capability for navigating dynamic and turbulent environments. The ability of firms to sustain their performance despite external disruptions, particularly those arising from market and technological change, is paramount for achieving long-term sustainability. This study offers a novel contribution by examining how two key dimensions of environmental turbulence—market turbulence and technological turbulence—moderate the relationship between organizational resilience capacity and sustainability performance. Our empirical findings, based on data from 423 SMEs, demonstrate that while organizational resilience positively correlates with sustainability performance, this relationship is significantly weakened under high levels of market and technological turbulence, indicating a negative moderating effect. These results advance resource-based and dynamic capabilities theory by highlighting the contingent nature of resilience in unstable contexts. Furthermore, this study provides practical guidance. SMEs should strategically invest in resilience-building efforts and continuously adapt their strategies in response to environmental fluctuations. Targeted approaches to managing different forms of turbulence and forming resilience-oriented collaborations can enhance sustainability outcomes. This research makes significant contributions to theory and practice; however, there are limitations that future research should take into account in order to appropriately utilize this study’s findings. Full article

In the context of pursuing the goal of strategic imperatives of sustainable development, the ESG performance of enterprises has become a key yardstick for measuring their comprehensive environmental contribution and economic efficiency. Enhancing ESG performance has far-reaching significance in promoting green and sustainable development of enterprises and society. Drawing on the upper echelons theory, this paper investigates the impact of the chief executive officer’s (CEO’s) green experience on corporate environmental, social, and governance (ESG) performance, utilizing a sample of publicly listed Chinese companies from 2011 to 2023. The study demonstrates that CEOs with green experience significantly enhance corporate ESG performance, a conclusion that remains consistent following a series of rigorous robustness checks. Mechanistic analysis reveals that CEOs’ green experience primarily facilitates corporate ESG performance enhancement through green innovation initiatives. Furthermore, CEO discretion amplifies the positive influence of green experience on ESG performance. Heterogeneity analysis demonstrates that the influence of the CEOs’ green experience on ESG performance is more pronounced in high-tech enterprises, in markets characterized by lower levels of competition, and in firms situated in regions exhibiting higher degrees of social trust. These findings impart both theoretical and practical implications for enhancing corporate ESG performance and offer novel strategic perspective to advance environmental stewardship, social responsibility, and corporate governance frameworks. Full article

This study investigates the impact of environmental, social, and governance (ESG) disclosure on value creation in a balanced panel of 100 non-financial Sharia-compliant firms listed on the Saudi Stock Exchange over the period 2014–2023. The analysis employs a combination of econometric techniques, including fixed effects models with Driscoll–Kraay standard errors, Pooled Ordinary Least Squares (POLS) with Driscoll–Kraay standard errors and industry and year dummies, and two-step system generalized method of moments (GMM) estimation to address potential endogeneity and omitted variable bias. Value creation is measured using Tobin’s Q (TBQ), Return on Assets (ROA), and Return on Equity (ROE). The models also control for firm-specific variables such as firm size, leverage, asset tangibility, firm age, growth opportunities, and market capitalization. The findings reveal that ESG disclosure has a positive and statistically significant effect on firm value across all three performance measures. Furthermore, firm size significantly moderates this relationship, with larger Sharia-compliant firms experiencing greater value gains from ESG practices. These results align with agency, stakeholder, and signaling theories, emphasizing the role of ESG in enhancing transparency, reducing information asymmetry, and strengthening stakeholder trust. The study provides empirical evidence relevant to policymakers, investors, and firms striving to achieve Saudi Arabia’s Vision 2030 sustainability goals. Full article

In the era of climate change, the strategic importance of forestry products for sustainable development is increasingly recognized. Amid a global resurgence of industrial policy aimed at addressing environmental challenges, this study investigates the impact of China’s central and provincial green industrial policies on the export competitiveness of wood-processing enterprises. Utilizing firm-level data from the China Industrial Enterprise Database and China Customs Export Database (2000–2013), we apply a double machine learning (DML) approach and construct a heterogeneous competitiveness model to evaluate policy effects along two dimensions: export quantity (volume and intensity) and export quality (product complexity and consumer-perceived quality). Our findings reveal a clear dichotomy in policy outcomes. While industrial policies have significantly improved export product complexity—reflecting China’s comparative advantage in labor-intensive production—they have had limited or even negative effects on export volume, intensity, and product quality. This suggests that current policy frameworks disproportionately reward horizontal innovation (product diversification) while neglecting vertical upgrading (quality enhancement), thereby hindering comprehensive export performance gains. Those results highlight the need for more balanced and targeted policy design. By aligning industrial policy instruments with both complexity and quality objectives, policymakers can better support the sustainable transformation of China’s forestry sector and enhance its competitiveness in global value chains. Full article