Chunnan Qian and Xiaorong TangThis email address is being protected from spambots. You need JavaScript enabled to view it.
School of Economics and Management, Hebei Oriental University, Langfang 065001, China
Received: April 10, 2025 Accepted: July 28, 2025 Publication Date: October 9, 2025
Copyright The Author(s). This is an open access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are cited.
Industry 4.0 technologies, particularly automation and digital transformation, are increasingly central to sustain able innovation in manufacturing. This study examines the role of Industry 4.0 in promoting green innovation within Chinese manufacturing firms. Using firm-level panel data from 2011 to 2019, we develop an econometric model incorporating industry-level I4.0 density and firm-level exposure to automation. Results show that I4.0 adoption significantly enhances green innovation, especially among large firms. Digital transformation and managerial efficiency strengthen this effect, while firms led by IT-savvy CEOs experience further benefits. How ever, regional and sectoral disparities exist: larger firms in technology-intensive and developed regions benefit more, while smaller firms face greater challenges. To address endogeneity, an instrumental variable approach is employed, and robustness is verified through alternative specifications. This study offers methodological contributions through its use of firm-level data and multi-level modeling, and provides strategic guidance for managers and policymakers aiming to achieve environmental goals through automation.
Keywords: Industry 4.0, Automation, Digital Transformation, Green Innovation, Sustainability.
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