Work

Can digital innovation be a new driver of corporate sustainability?

Year: 2026

Type: article

Abstract: Digital innovation enables firms to build competitive advantages and achieve sustainability. Based on data from Chinese A-share listed firms from 2014 to 2023, we explore the impact of digital innovation on corporate sustainability and the moderating effect of economic policy uncertainty. We find that digital innovation promotes corporate sustainability, with increasing economic policy uncertainty strengthening this effect. In mechanism tests, this effect occurs by improving management efficiency and mitigating managerial myopia. Heterogeneity analyses indicate that digital innovation has a greater positive effect on sustainability for firms with stronger green transformation capabilities and those facing greater marketization. Analysis of different digital innovation patents shows that utility model and invention patents contribute to corporate sustainability, unlike design patents. These findings highlight the effect of digital innovation on corporate sustainability and offer valuable insights for firms seeking to balance innovation, competitiveness and long-term sustainability.

Source: China Journal of Accounting Research

DOI: 10.1016/j.cjar.2025.100466

Authors: Qingmei Tan, Yiheng Cui

Institution: Tianjin University

Language: English

Topic: Digital Economy and Transformation

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: gold

Estimated APC paid: $1,800