Fostering High-Quality Corporate Development through ESG-Driven Technological Innovation: A Moderated Mediation Analysis

In the pursuit of corporate high-quality development (HQD), this research delves into the intricate relationship between environmental, social, and governance (ESG) performance, technological innovation, and Chinese A-share-listed companies from 2011 to 2020. We present empirical evidence of a significant positive correlation between ESG performance and HQD, enriching the landscape of sustainable business practices. Importantly, this study introduces technological innovation as a pivotal mediator in this association, shedding light on its critical role in translating ESG endeavors into superior outcomes. The theoretical implications of this research are twofold. Firstly, it solidifies the empirical basis for the positive impact of ESG performance on HQD, advancing our understanding of this critical relationship. Also, by identifying technological innovation as a mediator, this study offers a novel perspective, revealing the intricate mechanisms through which ESG practices shape high-quality corporate development. This discovery expands theoretical frameworks in sustainability and innovation management, enabling a deeper understanding of these dynamics. From a managerial perspective, this study underscores the strategic importance of integrating ESG initiatives into core business strategies. Aligning mission statements, corporate governance, and daily operations with ESG principles enhances reputation and stakeholder engagement and drives high-quality development through responsible decision-making. Moreover, transparency in ESG reporting, using frameworks like GRI and SASB, fosters trust and accountability, promoting sustainable growth. Our research also emphasizes the necessity of technology investment to facilitate high-quality development. Organizations should prioritize innovation, research, and development, as technology streamlines production, differentiates products, and reduces costs, ultimately enhancing overall performance. In terms of policy recommendations, we urge policymakers to incentivize ESG practices and technology innovation through regulations, tax incentives, and support for collaborative ecosystems. These initiatives can align economic development with sustainability goals, creating a conducive environment for responsible business practices and innovation.