The Impact of Senior Executives' Perceptions of Sustainability on the Level of Green Technological Innovation in Enterprises

Abstract

Regarding the background of "dual carbon" and high-quality development, it is a hot topic for both academics and industries about corporate green transformation. Based on hierarchical theory, this paper selects Chinese A-share listed companies from 2014-2024 as its research sample, empirically examines the effect of senior executives' green awareness on firms' level of green technological innovation, and further explores the mediating role of ESG performance. The findings show that: (1) senior executives' green awareness exerts a significant positive driving effect on a firm's level of green technological innovation, and this dominant influence remains robust under stability tests conducted with a shorter sample interval. (2) The results of the mediation analysis indicate that ESG performance acts as a crucial 'bridge' between executives' green awareness and the level of corporate green technological innovation; that is, executives' green awareness significantly enhances the firm's substantive green innovation output by optimising its overall performance across environmental, social and governance dimensions. (3) Heterogeneity analysis reveals that polluting firms are more sensitive and responsive to incentives for green innovation than non-polluting firms.