Assessing the impact of technological innovation on environmental and financial performance of Chinese textile manufacturing companies

Abstract

As the leader of green technological advancement, China has implemented policies and strategies for companies to use green technological innovations in their production line. Earlier studies focused on the investment in technological innovation, innovation-driven policies, and the relationship between competitiveness and technological innovation. There is a literature gap in examining the effect of technological innovation on environmental and financial performance for textile manufacturing companies listed in China. This study therefore seeks to address the literature gap by analysing the impact of technological innovation on environmental and financial performance for textile manufacturing companies listed in China. Panel data for 61 textile manufacturing companies from 1990 to 2020 was used for the empirical analysis. The authors utilised the generalised methods of moments (GMM) estimator. The findings from our study highlights how technological innovation is contributing to environmental and financial performance of firms.