How ESG accelerates the industrial robot applications in manufacturing

Abstract

With the advancement of global Sustainable Development Goals (SDGs), corporate performance in Environmental, Social, and Governance (ESG) has increasingly attracted attention. Industrial robots, as a pivotal technology, play an essential role in driving digitalization and facilitating the green transformation of manufacturing. This study provides new empirical evidence regarding how ESG promotes the application of industrial robots in the unique institutional and environmental context of China. Using the Technology-Organization-Environment (TOE) framework, this study empirically examines the direct impacts, underlying mechanisms, and heterogeneous effects of ESG on industrial robot applications in China’s manufacturing sector. The analysis is based on panel data from listed manufacturing firms between 2009 and 2021. The findings reveal three key insights. First, ESG significantly enhances the industrial robot applications in manufacturing firms, a conclusion that remains robust after addressing endogeneity concerns and conducting various robustness checks. Second, the mechanism analysis indicates that ESG fosters industrial robot applications by promoting technological innovation, strengthening organizational governance, and responding to external environmental changes. Third, heterogeneity analysis demonstrates that ESG has a more pronounced effect on industrial robot applications in high-tech and low-pollution firms compared to their non-high-tech and high-pollution counterparts.