Public procurement and green innovation in Chinese enterprises: insights from econometric models and cross-case studies

Abstract

This study employs econometric models and cross-case analysis to investigate the impact and mechanism of public procurement (PP) on enterprises’ green innovation (EGI). Based on the manual identification of government customers, we conduct panel model estimations on Chinese listed company data from 2010 to 2021. Findings reveal that PP has a green innovation effect at the micro level. Moreover, expected market returns, corporate social responsibility (CSR), and financing constraints play a mediating role between PP and EGI. Additionally, we delved into the relationship between PP and EGI through a cross-case study. It not only validates the conclusions drawn from the econometric model but also summarises the heterogeneous characteristics of PP affecting EGI in practice. This study not only contributes to the existing literature on the outcomes of PP and factors impacting EGI but also furnishes additional empirical insights into the mechanisms through which PP enhances EGI.