Nexus between digital transformation and energy technology innovation: An empirical test of A-share listed enterprises

In the era of digital economy, the economic model combining “substantial economy” and “digitalization” has spurred China's innovation activities, in particular energy technology innovation (ETI), with digital transformation (DT) becoming necessary for enterprises to stay competitive. However, how DT contributes to ETI remains unclear in both literature and practice. Recognizing their importance in ultimately sustaining enterprises' competitiveness, in this study we explore the nexus and mechanism between enterprise DT and ETI. In our research methodology, the data collected pertains to 1747 enterprises listed in A-shares from 2011 to 2019. We develop both static and dynamic benchmark regression models and a moderation effect model to test the relationships between DT and ETI. In addition, to address the endogeneity issue in model application, we introduce exogenous instrumental variables and adopt the generalized method of moment and a two-stage least square method. Our findings highlight that DT has not only a positive impact on ETI but also a heterogeneous effect on ETI in the types of enterprise ownerships and bias of energy technology progress. Moreover, it affects ETI mainly through total agency costs, financial technology, and research and development investment. Based on the findings, we offer policy recommendations for the coordination of digital economy and energy transition, providing guidance for developing countries. For example, digital platforms are recommended to be implemented at both the enterprise and national levels, in attempting to facilitate the development of digital economy and smart energy.