The impact of new quality productivity on sustainable development performance

Abstract

This study investigates the impact of new quality productivity (Npro) on corporate sustainable development performance. Using data from Chinese A-share listed firms from 2011 to 2021, we find that companies that develop Npro can improve their sustainability performance. Mechanism analyses reveal that Npro primarily influences sustainability performance by improving green innovation capabilities and internal control levels. Furthermore, compared to non-high-tech firms, high-tech firms’ sustainability performance is more obviously enhanced. The positive effect is also more pronounced in firms at the growth stage than in those at the mature or recession stages. Therefore, firms should actively foster green productivity, comprehensively enhance the “green content” of all production factors, and green the combination of factors. Our findings contribute to break the “haze” faced by enterprise and provide empirical evidence to support sustainable development.