Can digital construction policy promote enterprise green innovation? A quasinatural experiment based on broadband China

Purpose The purpose of this study is to explore how digital construction policy (DCP) drives enterprise green innovation (EGI) from an information processing theory (IPT) perspective, including the mediating mechanisms of market information accessibility and operational risk, the moderating role of intellectual property protection (IPP) and product market competition (PMC) and the heterogeneous effects of ownership, Internet development and managerial ability. Design/methodology/approach Based on the matched panel data of A-share listed enterprises from 2011 to 2019 and the Broadband China policy as a quasinatural experiment, this study investigates the impact of DCP on EGI by constructing a multi-time point difference-indifferences (DID) model. Findings Digital construction policies can significantly promote EGI. DCP works in two fundamental ways, namely by increasing market information accessibility and reducing operational risk. IPP and PMC significantly increased the contribution of digital construction policies to EGI. Heterogeneity analysis found that digital technology has a stronger promotion effect for SOEs, high-managerial-ability enterprises and enterprises in regions with low Internet development levels. Practical implications The study provides new insights about the antecedents of EGI from a DCP perspective. It also enlightens emerging economies to actualize green innovation under the digital wave. Originality/value From the perspective of IPT, this study explains the mechanism of DCP-driven EGI. It enhances understanding of the relationship between DCP and EGI.