Regional Big Data Application Capability and Firm Green Technology Innovation

Abstract

This study aims to investigate the impact of regional big data application capability (RBDAC) on the green technology innovation (GTI) of manufacturing firms. Based on the data from Shanghai and Shenzhen A-share listed manufacturing firms in China from 2010 to 2020, the difference-in-differences method is used for the analysis. The results show that RBDAC can significantly improve the GTI in manufacturing firms. Further research shows that government subsidy and analyst coverage have strengthened the positive effect of RBDAC on GTI. Extensive analysis validates the heterogeneity of RBDAC in influencing the GTI based on financial constraints, tax administration strengths, regions, property rights, and top management team. The economic outcome test shows that RBDAC also improves firms’ environmental, social, and governance performance. Our findings contribute to the literature on big data application capability and GTI, as well as provide practical enlightenment for manufacturing firms to engage in digital and green practices.