Strategic ESG Competitive Intelligence, ESG Performance and Investment Efficiency in Chinese Listed Firms

Abstract

Purpose: This study examines the relationship between Environmental, Social, and Governance (ESG) performance and corporate investment efficiency, emphasizing the role of Competitive Intelligence in transforming ESG-related information into strategic knowledge for organizational decision-making. It further investigates how information governance and external monitoring mechanisms contribute to this relationship. Methodology/Approach: The study employs a longitudinal panel design based on 2,800 Chinese A-share listed companies observed from 2018 to 2024. The empirical analysis evaluates the relationship between ESG performance, investment efficiency, and Strategic ESG Competitive Intelligence (SECI), while considering the influence of competitive pressure and media attention as external information and monitoring mechanisms. Originality/Relevance: The study advances the Competitive Intelligence literature by conceptualizing Strategic ESG Competitive Intelligence as an organizational capability that converts ESG information into actionable intelligence. This perspective connects sustainability information, information governance, environmental monitoring, and strategic decision-making within an integrated analytical framework. Key Findings: The findings indicate that stronger ESG performance is associated with improved investment efficiency. Strategic ESG Competitive Intelligence plays a mediating role in this relationship, suggesting that ESG information generates greater strategic value when organizations possess mechanisms for interpreting and applying it to decision-making. Competitive pressure and media attention further strengthen the intelligence pathway. Theoretical/Methodological Contributions: The study integrates ESG performance, information governance, investment efficiency, and Competitive Intelligence, demonstrating how ESG-related information can be transformed into strategic intelligence. It also extends the Competitive Intelligence cycle to sustainability-oriented corporate decision-making and provides empirical evidence from Chinese listed firms.