Research shows significant synergistic effects of digital and green transformation on corporate sustainability performance, highlighting the role of environmental regulations.
The digital and green transformation (DGT) has emerged as an essential strategy for companies to enhance competitiveness and achieve sustainable development. Current research has primarily concentrated on the effects of either digital or green transformation individually on corporate sustainability performance (CSP), while largely neglecting their synergistic impacts. This study emphasizes that DGT influences CSP mainly through two mechanisms: resource synergy, which alleviates financing constraints and optimizes resource allocation, and innovation synergy, which broadens enterprise knowledge scope and enhances innovation quality. Using data from Chinese publicly listed firms from 2015 to 2023, we adopt a two-way fixed-effects model to analyze the impact of DGT on CSP, the underlying mechanisms, and the moderating role of environmental regulations. The findings reveal the following: First, DGT exerts a significant positive influence on CSP, demonstrating a “multiplier effect” compared to the individual impacts of digital or green transformation alone. Second, environmental regulations positively moderate the relationship between DGT and CSP. Finally, DGT has a more pronounced positive impact on CSP in heavily polluting enterprises, under strong market competition environments, and with high intellectual property protection. This study not only enriches the research on DGT at the enterprise level but also provides empirical evidence from emerging economies for policymakers to formulate relevant strategies.
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Zhu et al. (2025) studied this question.
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