From trade-offs to strategic synergy: how digitalization–greenization synergy drives innovation efficiency in manufacturing

Purpose This study examines how digitalization–greenization synergy influences innovation efficiency in manufacturing industries, transcending traditional trade-off perspectives to explore strategic synergy potential between digital transformation and environmental sustainability. Design/methodology/approach Using panel data from 656 Chinese A-share manufacturing enterprises (2013–2023), this research employs a coupling coordination model to measure digitalization–greenization synergy and a super-efficiency slacks-based measure (SBM) model to assess innovation efficiency. The study explores the relationship between digitalization–greenization synergy and manufacturing innovation efficiency through a fixed effects model, investigating the mediating roles of financing constraints and dynamic capabilities and the moderating effects of environmental regulations through a series of fixed effects models. Findings Digitalization–greenization synergy significantly enhances manufacturing innovation efficiency by leveraging complementary advantages to generate resource and capability synergies. This synergy alleviates corporate financing constraints and strengthens dynamic capabilities, which exhibit chain mediation effects within the “resources-capabilities-behavior” framework. Mandatory environmental regulations strengthen the positive relationship between digitalization–greenization synergy and innovation efficiency, while strategic environmental regulations weaken it. Originality/value This study reconceptualizes digitalization and greenization as synergistic rather than competing priorities, revealing dual mechanisms (resource synergy and capability synergy) through which transformation synergies enhance innovation efficiency. It advances institutional theory by elucidating the differential impacts of environmental regulations on transformation–innovation relationships.