Going green and profitable: The impact of smart manufacturing on Chinese enterprises

Wenjing Lyu; Tianyuan Wang; Rui Hou; Jin Liu

doi:10.1016/j.cie.2023.109324

Going green and profitable: The impact of smart manufacturing on Chinese enterprises

Wenjing Lyu
, Tianyuan Wang
, Rui Hou
, Jin Liu^*

^*Corresponding author for this work

School of Education

Research output: Contribution to journal › Article › peer-review

24 Citations (Scopus)

Abstract

The potential of Industry 4.0-based smart manufacturing to drive sustainable and profitable practices in enterprises has yet to be fully explored. This study addresses this gap by utilizing a Propensity Score Matching with Difference-in-Difference methodology to investigate the causal impact of smart manufacturing policy implementation on the green innovation and financial profitability of Chinese manufacturing enterprises. Our results demonstrate that the adoption of smart manufacturing pilots not only promotes green innovation, but also enhances financial profitability of Chinese manufacturing firms. Moreover, we examine the underlying mechanism and boundary conditions of this causal relationship. By shedding light on the net effect of government policies aimed at facilitating smart transformation, our research offers a valuable contribution to the existing literature on Industry 4.0-based smart manufacturing.

Original language	English
Article number	109324
Journal	Computers and Industrial Engineering
Volume	181
DOIs	https://doi.org/10.1016/j.cie.2023.109324
Publication status	Published - Jul 2023

Keywords

Financial profitability
Green innovation
Green transformation
Industry 4.0
Smart manufacturing

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10.1016/j.cie.2023.109324

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title = "Going green and profitable: The impact of smart manufacturing on Chinese enterprises",

abstract = "The potential of Industry 4.0-based smart manufacturing to drive sustainable and profitable practices in enterprises has yet to be fully explored. This study addresses this gap by utilizing a Propensity Score Matching with Difference-in-Difference methodology to investigate the causal impact of smart manufacturing policy implementation on the green innovation and financial profitability of Chinese manufacturing enterprises. Our results demonstrate that the adoption of smart manufacturing pilots not only promotes green innovation, but also enhances financial profitability of Chinese manufacturing firms. Moreover, we examine the underlying mechanism and boundary conditions of this causal relationship. By shedding light on the net effect of government policies aimed at facilitating smart transformation, our research offers a valuable contribution to the existing literature on Industry 4.0-based smart manufacturing.",

keywords = "Financial profitability, Green innovation, Green transformation, Industry 4.0, Smart manufacturing",

author = "Wenjing Lyu and Tianyuan Wang and Rui Hou and Jin Liu",

note = "Publisher Copyright: {\textcopyright} 2023 Elsevier Ltd",

year = "2023",

month = jul,

doi = "10.1016/j.cie.2023.109324",

language = "English",

volume = "181",

journal = "Computers and Industrial Engineering",

issn = "0360-8352",

publisher = "Elsevier Ltd.",

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TY - JOUR

T1 - Going green and profitable

T2 - The impact of smart manufacturing on Chinese enterprises

AU - Lyu, Wenjing

AU - Wang, Tianyuan

AU - Hou, Rui

AU - Liu, Jin

PY - 2023/7

Y1 - 2023/7

N2 - The potential of Industry 4.0-based smart manufacturing to drive sustainable and profitable practices in enterprises has yet to be fully explored. This study addresses this gap by utilizing a Propensity Score Matching with Difference-in-Difference methodology to investigate the causal impact of smart manufacturing policy implementation on the green innovation and financial profitability of Chinese manufacturing enterprises. Our results demonstrate that the adoption of smart manufacturing pilots not only promotes green innovation, but also enhances financial profitability of Chinese manufacturing firms. Moreover, we examine the underlying mechanism and boundary conditions of this causal relationship. By shedding light on the net effect of government policies aimed at facilitating smart transformation, our research offers a valuable contribution to the existing literature on Industry 4.0-based smart manufacturing.

AB - The potential of Industry 4.0-based smart manufacturing to drive sustainable and profitable practices in enterprises has yet to be fully explored. This study addresses this gap by utilizing a Propensity Score Matching with Difference-in-Difference methodology to investigate the causal impact of smart manufacturing policy implementation on the green innovation and financial profitability of Chinese manufacturing enterprises. Our results demonstrate that the adoption of smart manufacturing pilots not only promotes green innovation, but also enhances financial profitability of Chinese manufacturing firms. Moreover, we examine the underlying mechanism and boundary conditions of this causal relationship. By shedding light on the net effect of government policies aimed at facilitating smart transformation, our research offers a valuable contribution to the existing literature on Industry 4.0-based smart manufacturing.

KW - Financial profitability

KW - Green innovation

KW - Green transformation

KW - Industry 4.0

KW - Smart manufacturing

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DO - 10.1016/j.cie.2023.109324

M3 - Article

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SN - 0360-8352

VL - 181

JO - Computers and Industrial Engineering

JF - Computers and Industrial Engineering

M1 - 109324

ER -

Going green and profitable: The impact of smart manufacturing on Chinese enterprises

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Keywords

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