How to leverage manufacturing digitalization for green process innovation: an information processing perspective

Purpose The aim of this study was to examine how manufacturing digitalization can be leveraged to promote green innovation in the digital era by investigating the effects of manufacturing digitalization on green process innovation, and thus firm performance. The authors also explored how the role of manufacturing digitalization varies with horizontal information sharing, vertical bottom-up learning and technological modularization. Design/methodology/approach Five hypotheses were examined by performing regression analyses on survey data from 334 manufacturing firms in China. Findings Manufacturing digitalization positively affects green process innovation, and thus firm performance. Furthermore, this positive effect is strengthened by horizontal information sharing and technological modularization and weakened by vertical bottom-up learning. Originality/value This study extends the literature rooted in the natural-resource-based view by identifying the crucial role of green process innovation and investigating the value of manufacturing digitalization for developing green capabilities in the digital era. It also contributes to this line of research by revealing contingent factors to leverage manufacturing digitalization from the information processing perspective. Furthermore, this study extends information processing theory to the digital context and identifies the interaction of organizational design (vertical bottom-up learning and horizontal information sharing) and digital investment (manufacturing digitalization).