Impact of Green Innovation Quality on Performance of Manufacturing Enterprise

Environmental pollution caused by the rapid development of China’s economy makes the green transition extremely urgent. Compared with others, the manufacturing industry in China is more dependent on environmental resources with more resource consumption. Therefore, manufacturing enterprises must endeavor to protect the environment through green technology innovation and achieve sustainable development through efficient and innovative research and development. Based on the definition of green innovation quality and performance, the impact of green innovation quality on the performance of enterprises was explored in this study. The data of the listed manufacturing enterprises from 2011 to 2021 were analyzed to construct a regression model and explore the relationship between green innovation quality and enterprise performance. Improving the green innovation quality of the enterprise significantly improves its performance, especially for newer ones with a large scale, a low asset-liability ratio, small financing constraints, and a high-profit margin. The improvement of green innovation quality in state-owned enterprises more significantly impacts corporate performance than private enterprises. Policy suggestions were made based on the results of this study to improve the quality of green innovation in the manufacturing industry.