Digital transformation and green innovation: The mediating role of green management disclosure and the moderating role of institutional pressure

As environmental problems continue to intensify, firms can consider using green innovation as an effective strategy to mitigate these problems. Although the effect of digital transformation on companies has been comprehensively evaluated, whether it is a positive factor for green innovation remains unclear. Thus, this study examined the relationship between digital transformation and green innovation. Panel data on 3021 firms from 75 industries in China’s A-share stock market for the period 2011–2021 were analyzed, and a fixed effects model was employed. Results showed that digital transformation positively influences green innovation; green management disclosure is one of the transmission channels for this influence. Additionally, industry-level institutional pressure negatively moderates the relationship between digital transformation and green innovation. This result is attributable to the duplication of influence paths with digitalization and unquestioning mimetic behavior to peer. The study expands the universality of the research results and further investigates the transmission mechanism between digital transformation and green innovation. Moreover, it suggests that firms should accelerate their digital transformation and utilize it to improve their disclosure of green management information. Firms can also employ other green practices to obtain legitimacy in the industry and reduce the negative impact of institutional pressure.