Evaluating the Green Technological Innovation of Chinese Environment on Firm Sustainability: The Mediating Role of Supply Chain Relationships

^1,4 Mahasarakham Business School, Mahasarakham University, Thailand
^2,3 Henan Polytechnic Institute, Nanyang, Henan, China

^* Corresponding author: 250852715@qq.com

Abstract

This research is to develop Chinese economy and accomplish the strategic goal of national sustainable development. The objectives are to investigate the impact of green technological innovation on firm sustainability and to examine the mediating of supply chain relationships related to green technological innovation and firm sustainability. The POLC and Ecological Modernization Theory (EMT) theories are employed. The sample size is 398 firms in 2022 from A-share listed firms registered in Shanghai and Shenzhen Stock Exchanges. The research shows digitalisation planning, digitalisation organizing, and green technological leading, have a significant positive influence on the sustainability of the firms. Even mediating variables like supply chain relationships are incorporated into the model, these three factors continue to have a major influence on the firms’ sustainability. According to the study, businesses may need to accelerate their digital transformation, precisely assess how much resource they use and how that affects the environment during production, optimise their resource allocation, boost their efficiency, reduce their environmental costs, and eventually increase their green total factor productivity. Businesses should use technical innovation at the same time. This would have an effect on the manufacturing companies’ sustainability, promote technical innovation in companies, and reduce pollution and environmental damage.