Multi-Source Peer Pressure, Digital Transformation and Enterprise Sustainable Innovation

As the global economy enters a phase of complexity and volatility, sustainable innovation has become the primary driving force behind the economic development of nations. While existing literature acknowledges the existence of peer effects in corporate innovation, the impact of multi-sourced peer pressure arising from the innovation gap between focal firms and their peer group on enterprises’ sustainable innovation (ESI) remains to be explored. This study explores the impact of network, regional, and industry peer pressure on ESI, as well as the moderating effect of digital transformation (DT) based on the Chinese A-share listed manufacturing firms’ panel data in Shanghai and Shenzhen from 2016 to 2021. The findings reveal that: (1) Network, regional, and industrial peer pressure all have a significant positive impact on ESI, the effect of average peer pressure on ESI is significantly higher than that of maximum peer pressure. (2) The impact of peer pressure on ESI exhibits heterogeneity across different innovation types, firm sizes, and network embedding groups. (3) DT plays a positive moderating role in the relationship between peer pressure and ESI. For large-size and high-network embedding firms, DT significantly moderates the effect of average peer pressure on ESI. This study broadens the scope of factors influencing corporate innovation and deepens the understanding of peer effects. The findings provide valuable insights for policymakers and corporate managers seeking to promote ESI in the digital age.