The impact of digital transformation on ESG performance and the moderation of mixed‐ownership reform: The evidence from Chinese state‐owned enterprises

Zhang, Shenshen

doi:10.1002/csr.2656

Corp Soc Responsibility Env

2023

DOI: 10.1002/csr.2656

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The impact of digital transformation on ESG performance and the moderation of mixed‐ownership reform: The evidence from Chinese state‐owned enterprises

Shenshen Zhang

Abstract: This article selects state‐owned enterprises listed on the A‐share market of China from 2010 to 2021 as the research sample, and adopts the Ordered Logistic Model to analyze the relationship between digital transformation (DX) and environment, social and governance (ESG) performance of enterprises, and studies the moderating effect of mixed‐ownership reform. The study found that: the DX of state‐owned enterprises can indeed improve ESG performance, and its time lag effect is significant; for state‐owned enterp… Show more

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Cited by 9 publications

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Strategic choices in going public: ESG performance implications in China

Cheng,

Gao,

Liu

et al. 2024

Bus Strat Env

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Choices in going public are important business strategies that can influence Environmental, Social and Governance (ESG) performance through varying levels of regulatory scrutiny, investor expectations, governance improvements, public attention and strategic focus. We investigate the impact of listing approach on ESG performance in China over the period of 2009 to 2022, by comparing the ESG performance of firms going public via initial public offering (IPO) versus reverse merger (RM). Consistent with our institutional, legitimacy and averse‐selection hypotheses, we find that RM firms exhibit significantly lower ESG performance compared with IPO firms, a difference we attribute to the greater performance pressure, higher litigation risk, greater financing constraints and poorer internal controls experienced by RM firms. These factors likely reduce management's willingness to invest in and improve ESG outcomes. However, as time passed, the discrepancy in ESG performance between RM firms and IPO firms gradually diminished. Additionally, the nature of state ownership and reduced competitive pressure in the industry also serve to mitigate the negative impact of RMs on firms' ESG performance. To promote sustainable development, going public via IPO offers a better business strategy, creating shared value among a broader range of stakeholders, including socially responsible investors, advocacy groups and regulators.

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Strategic choices in going public: ESG performance implications in China

Cheng,

Gao,

Liu

et al. 2024

Bus Strat Env

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Green entrepreneurship orientation and environmental, social, and governance performance: Do contractual strategic alliances matter?

Wang,

Hu,

Wang

2024

Corp Soc Responsibility Env

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The driving forces that enable firms to achieve better environmental, social, and governance (ESG) performance have been a popular topic in academia. However, in the context of increasing numbers of entrepreneurial teams engaging in green entrepreneurship, whether a green entrepreneurial orientation (GEO) enhances ESG performance from an overall strategic orientation is still unclear. If so, what are the mechanisms by which a GEO influences ESG performance? To determine the potential relationship and influencing mechanism between a GEO and ESG performance, we use Chinese listed firms from 2009 to 2022 as our research sample and fixed effects and difference‐in‐difference models to explore how a GEO affects ESG performance. The results show that a GEO significantly and positively affects ESG performance, especially for nonstate‐owned enterprises (nonSOEs), firms with high digital transformation, and firms in the manufacturing industry. Further research shows that participation in contractual strategic alliances (SAs) can strengthen the effect of a GEO on ESG performance. Moreover, we find that a GEO can efficiently encourage firms to engage in contractual SAs, that the link between the two is moderated by financial constraints (FCs) in an inverse‐U manner, and that this relationship is evident only for nonSOEs. In conclusion, our study provides a nuanced understanding of how a GEO, contractual SAs, and FCs collectively shape corporate ESG activities and elucidates their far‐reaching implications for enhancing ESG performance. Our empirical findings also have practical implications for firms seeking to improve their ESG performance.

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Sustainable performance measurement through digital transformation within the sustainable development framework: The mediating effect of supply chain concentration

Sun,

Ong,

Teh

et al. 2024

Sustainable Development

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This study establishes a conceptual framework, “digital transformation – supply chain concentration – sustainable performance”, to address the existing knowledge gap and elucidate the nuanced connections between digital transformation, supply chain concentration, and sustainable performance. Indeed, the existing body of literature does not offer detailed analyses of the pathways and effects concerning the interplay among the three dimensions within the sustainable development framework. The model's foundation is rooted in stakeholder theory. By examining a sample of 3947 listed Chinese firms, this study's results highlight a noteworthy link between digital transformation and enhanced sustainable performance, assessed through the triple bottom line framework, thus helping to achieve sustainable development goals (SDGs), such as the eighth and ninth SDGs. This improvement is attributed to reducing supply chain concentration and promoting a diversified supply chain configuration. Furthermore, the correlation between digital transformation and sustainable performance settings demonstrates significant heterogeneity. This study enhances stakeholder theory by demonstrating that digital transformation and supply chain concentration contribute to sustainable performance, supporting the eighth and ninth SDGs and offering managers a pathway for sustainable development. It also calls for policies that promote digital transformation and diversified supply chains to improve societal welfare and sustainability practices.

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The impact of digital transformation on ESG performance and the moderation of mixed‐ownership reform: The evidence from Chinese state‐owned enterprises

Cited by 9 publications

References 50 publications

Strategic choices in going public: ESG performance implications in China

Strategic choices in going public: ESG performance implications in China

Green entrepreneurship orientation and environmental, social, and governance performance: Do contractual strategic alliances matter?

Sustainable performance measurement through digital transformation within the sustainable development framework: The mediating effect of supply chain concentration

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