THE GREEN INNOVATION, SUSTAINABLE STRATEGY AND ESG PERFORMANCE: EVIDENCE FROM THE NEW GENERATION OF INFORMATION TECHNOLOGY IN CHINA

Authors

  • Shenglian Wang Faculty of Economics and Management, Beibu Gulf University,Qinzhou, Guangxi, China
  • Xiaoyuan Zhang Faculty of Economics and Management, Beibu Gulf University,Qinzhou, Guangxi, China
  • Raja Adzrin Raja Ahmad Faculty of Accountancy, Universiti Teknologi MARA, Johor Branch, Segamat Campus
  • Nurul Azlin Azmi Faculty of Accountancy, Universiti Teknologi MARA, Johor Branch, Segamat Campus

Keywords:

New-generation Information Technology Industries, Green Innovation, Sustainable Strategy, ESG performance

Abstract

Environmental, Social, and Governance (ESG) disclosure becomes a new focal point for the stakeholders relating to the firm’s disclosure and transparency. This transparency indicates a firm's efforts towards sustainable development in the face of escalating global environmental and social concerns. This study examines the relationship between green innovation, sustainable strategy, and ESG performance among selected industries in China. Furthermore, this study intended to examine the moderating effect of sustainable strategies on ESG performance. The final sample of this study is 381 new-generation information technology firms in China from 2018 to 2023. Our findings reveal that green innovation is positively significant on ESG performance. Then, sustainable strategies are positively significant on ESG performance. Moreover, the moderating effect of sustainable strategies significantly strengthens the positive relationship between green innovation and ESG performance. This indicates that firms that invest in green innovation and have sustainable strategies in the firms were able to enhance ESG performance. Our findings help the stakeholders and shareholders to consider investing in green innovation and set up long-term sustainable strategies in their firms to improve ESG performance. Despite extensive studies on ESG, our study introduces the moderating effect of sustainable strategies on ESG performance by using new-generation information technology sectors.

Author Biography

Nurul Azlin Azmi, Faculty of Accountancy, Universiti Teknologi MARA, Johor Branch, Segamat Campus

Nurul Azlin Azmi joined UiTM in June 2010 as an Accounting Lecturer in the Faculty of Accountancy. She received her Ph.D. (Financial Criminology) from Universiti Teknologi MARA in 2021. She was awarded with Graduate on Time (GOT) and Excellent Research Award (APC) for her Ph.D. She received her Bachelor of Accountancy (Hons) from Universiti Utara Malaysia in 2008 and Master of Business Administration (Accounting) from Universiti Utara Malaysia in 2010. While completing her master's degree, she worked as an Audit Assistant at AljeffriDean Chartered Accountant (M) in 2009. Then, she joined Stamford College Malacca as a lecturer in December 2009. Her research interests are in the area of political connection, auditing, earnings quality, and corporate governance.

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Published

2024-10-03

Issue

Vol. 11 No. 2 (2024): Volume 11 Issue 2

Section

ACCOUNTING