Threshold effects of energy consumption, technological innovation, and supply chain management on enterprise performance in China's manufacturing industry

Abstract

China's economy is changing from high-speed growth to high-quality development. Now its development is green and sustainable, characterized by low energy consumption and high innovation. Under the circumstance, it is vital to research on the threshold effects of energy consumption, technological innovation, and supply chain management on enterprise performance in China's manufacturing industry. This study selects data from 115 manufacturing companies listed in the Stock Exchange of Shanghai and Shenzhen from 2010 to 2019 as samples. We adopt the panel threshold model to analyze the impact of energy consumption, technological innovation, and supply chain management on enterprise performance. Our results show that energy consumption, technology innovation and supply chain management all have non-linear relationship on enterprise performance. There is an inverse S-shaped relationship between energy consumption and enterprise performance, and a significant threshold effect of technology innovation. Moreover, technological innovation has a two-sided effect on enterprise performance. In addition, supply chain management has a significant positive impact on enterprise performance. According to the project of China's carbon peaking by 2030, we put forward some methods for energy conservation, emission reduction, cost saving, and efficiency improvement for China's manufacturing industry. We also provide some suggestions for enhancing enterprises' technological innovation and supply chain management.