A Perspective on Management Myopia: The Impact of Digital Transformation on Carbon Emission Intensity

Abstract

Digitalization has emerged as an indispensable pathway for enterprises aiming to achieve low-carbon development, demanding strategic implementation by managers who play a crucial role in shaping organizational outcomes. This study utilizes text mining and IPCC methods (based on The Intergovernmental Panel on Climate Change standards) to assess the level of digital transformation and enterprise carbon emission intensity among Shanghai and Shenzhen A-share listed companies from 2008 to 2015. This study also investigates the impact of digital transformation on enterprise carbon emission intensity and examines the influence of myopic characteristics among managers along with their underlying mechanisms. The results indicate that: (1) Digital transformation decreases enterprise carbon emission intensity, with robust results supported by instrumental variable test, the Oster test, confounding variable threshold impact test, etc. (2) Heterogeneity analysis demonstrates that digital transformation is particularly effective in reducing enterprise carbon emission intensity for companies located in cities without national carbon trading pilot policies, heavy industrial sectors, and those influenced by peer effects. (3) The study on mechanisms reveals that management myopia poses a barrier to the decarbonization process driven by digitalization. It further explores the moderating effects of green innovation, sustainable investment, and environmental awareness, revealing that management constrained by innovation myopia, investment myopia, and environmental responsibility myopia faces challenges in promoting decarbonization. By examining the internal aspects of management myopia, we provide valuable insights and recommendations for enterprises seeking to achieve decarbonization through digital transformation.