Abstract
As Industry 4.0 develops, enterprises are investing in the industrial intelligent transformation. Using unique data from Chinese industrial enterprises, this paper investigates whether air quality affects the upgrading of industrial intelligence in enterprises. We find that decreased air quality improves industrial intelligence for enterprises, as enterprises increase their use of intelligent industrial robots when air pollution causes shortages of labour quantity and efficiency. Further analysis shows that large-scale enterprises and enterprises in areas with high economic development are more inclined to develop industrial intelligence in response to decreased air quality than their counterparts. In addition, the results indicate that the intelligent transformation of enterprises can improve their performance. This study provides a new perspective on the impact of environmental issues on corporate behaviour.
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