Digital technologies and Chinese digital firms’ green innovation

Purpose The purpose of this study is to advance the understanding of digitalization–sustainability relationships in the digital age. Specifically, this study aims to test the link between Chinese digital firms’ adoption of digital technologies and green innovation. This study highlights the peculiarities of digital firms related to green innovation and how the adoption of digital technologies contributes to the sustainable development agenda. Design/methodology/approach This study empirically examines the impact of digital technologies on green innovation outcomes in publicly listed digital firms in China from 2010 to 2020. Using panel data from the China Stock Market and Accounting Research Database (CSMAR) and the Chinese Research Data Services Platform, the authors estimate regression models and find support for the hypotheses. Findings The authors find that the digitalization level of firms has a positive impact on corporate green innovation. In addition, this relationship is positively moderated by the level of internationalization in the firms. Moreover, the results of this study past the robustness and endogeneity checks. Originality/value This study provides novel insights into the green innovation of digital firms by analyzing the knowledge management capabilities of digital firms as well as the impact of the level of internationalization on knowledge acquisition and management (i.e. boundary conditions). Specifically, the findings of this study provide a new context to encourage study on green innovation. Moreover, this study enriches the literature on corporate digitalization and the factors influencing corporate green innovation.