This study explores the relationship between perceived government pressure for environmental regulation and corporate eco-innovation. Based on the questionnaire data of Chinese private firms in 2016, this study explores the role of government pressure perceived by private firms in corporate environmental innovation, and the moderating effects of foreign ownership and entrepreneurs’ political status. The results show that there is a positive relationship between perceived government environmental regulatory pressure and corporate eco-innovation, and this relationship can be strengthened by foreign ownership and entrepreneurs’ political status. These findings provide a new strategic motivation for firms to undertake eco-innovation, i.e., the environmental regulatory pressure released by the government can urge firms to undertake strategies as an external “booster.”

This study examines the diverse environmental practices of multinational firms, the degree of digitalization among parent firms, and green innovation. Using data from multinational listed firms from 2007 to 2018 as a sample, this article uses regression analysis to show that the more widely distributed the subsidiaries of multinational firms, the more heterogeneous the environmental knowledge acquired by the parent firm. The more diverse the environmental practices, the worse the green innovation performance of the parent firm. The degree of digitalization of the parent firm can effectively mitigate this negative effect. The more digital the parent company is, the more quickly it can process the large amount of complex information that helps the parent firm to achieve green innovation. These findings provide a new perspective on innovation in firms.