Purpose: This study examines the impact of ESG management strategies on green innovation processes (product innovation and process innovation) and sustainable performance (financial and non-financial performance) through a comparative analysis of Korean and Chinese enterprises. Furthermore, it explores the moderating effects of government policies and digital transformation on the relationship between ESG management strategies and green innovation.Research design, data, and methodology: To empirically test the proposed hypotheses, survey data were collected from 606 Korean firms and 780 Chinese firms, and structural equation modeling (SEM) was employed for analysis.Results: Results indicate that ESG management strategies positively influence both product and process innovation, which in turn enhance sustainable performance. However, the direct impact of ESG strategies on sustainable performance was found to be stronger in China than in Korea. This suggests that Chinese firms tend to experience more immediate benefits from ESG management due to stronger regulatory enforcement and government-led initiatives, whereas Korean firms adopt ESG strategies with a more long-term innovation-oriented approach. Regarding the moderating effects, government policies and digital transformation did not show statistically significant moderating roles in either country. This implies that firms may be integrating ESG management independently of government support or digital transformation.Conclusions: This study contributes to the theoretical discourse on ESG management by incorporating green innovation as a mediating factor and examining cross-national differences in regulatory environments. The findings provide practical implications for policymakers and corporate decision-makers, emphasizing the necessity of tailored ESG strategies that align with national institutional contexts and industrial dynamics.
QISHA et al. (Sun,) studied this question.