This study aims to examine how environmental regulation (ENR) influences green innovation performance (GIP) in China's automobile industry by analyzing the mediating roles of top management commitment (TMC), innovative culture (INC), and digital transformation (DIT).
A quantitative approach was employed using data collected from 490 automotive and parts manufacturers in China. Structural equation modeling was conducted to test the hypothesized relationships and mediation effects based on Triadic Fit Theory and Legitimacy Theory.
The results reveal that ENR significantly enhances GIP both directly and indirectly. TMC, INC, and DIT each play partial mediating roles in this relationship, with DIT having the strongest effect. The findings underscore the importance of aligning external regulatory pressures with internal strategic, cultural, and technological mechanisms to boost innovation outcomes.
By integrating Legitimacy Theory and Triadic Fit Theory, this study advances green innovation theory by clarifying the internal alignment mechanisms through which environmental regulation enhances innovation outcomes. The findings suggest that regulatory pressure can function as an enabling force rather than a constraint, offering new theoretical insights for future sustainability and innovation research.
This study contributes to the productivity and performance management literature by integrating institutional theory and organizational capability perspectives. It offers a multi-mediator model explaining how ENR can enhance innovation performance through internal mechanisms, providing actionable insights for managers operating in environmentally regulated industries.
