The Influence of Green Transformation on ESG Management and Sustainable Competitive Advantage: An Empirical Comparison of Companies in the Pearl River Delta and Yangtze River Delta

With the continuous deterioration of the global ecological environment, energy saving, emission reduction, low carbon, and green industry have become new trends in global economic development. Green transformation (GT) and environmental, social, and corporate governance (ESG) elements have become the internal driving forces of corporate modernization. However, there is a lack of systematic theoretical and empirical research on the consequences of green transformation and ESG management on sustainable competitive advantage. Based on the core competence theory of enterprises, this research has discussed the effects of green transformation and ESG management on sustainable competitive advantages of enterprises, as well as the mediating role of ESG management between green transformation and sustainable competitive advantage of enterprises. The study took high-tech enterprises in the Pearl River Delta and Yangtze River Delta as samples and used correlation analysis, factor analysis, and multiple regression analysis to test the research hypotheses. The obtained empirical results showed that GT had a significant effect on ESG management and enduring competitive edge (encompassing both financial and strategic outcomes). There are obvious differences in the relationship between ESG management and sustainable competitive advantage in the Pearl River Delta and Yangtze River Delta enterprises. ESG management acts as a partial intermediary factor between GT and sustained competitive advantage. This study enriches the view of core competence theory and provides a reference for enterprises to achieve sustainable competitive advantage.