23 Jul 2025
Recently, a paper titled “How green strategic alliances enhance green innovation: Mechanisms and evidence in China" co-authored by Dr Hui Guo from the International Business School Suzhou (IBSS) at Xi’an Jiaotong-Liverpool University (XJTLU), and other researchers, has been accepted and published in the ABS 2 and ABDC A - ranked journal Finance Research Letters. This study offers new insights into how green strategic alliances can significantly boost corporate green innovation, particularly in emerging markets like China.
Based on over 35,000 firm - year observations of Chinese A - share listed companies between 2007 and 2021, the study used advanced text analysis on disclosed strategic cooperation agreements and found that firms engaged in green strategic alliances (partnerships centered on environmental goals) experienced a nearly 45% increase in green patent applications.
The uniqueness of this paper lies in its in - depth exploration of the mechanisms underlying these alliances. The researchers found that green partnerships can drive innovation through three main mechanisms: First, alliances with government bodies can help companies access targeted environmental subsidies, providing financial support for green R&D. Second, collaborations with research institutions can bring in cutting-edge talent and technical know-how. Third, alliances with peer companies can reduce innovation uncertainty and enhance firms' willingness to undertake ambitious green projects. Notably, the impact is most pronounced among firms located in regions with underdeveloped financial markets, lower innovation capacity, and lower risk appetite, making green alliances a powerful tool to overcome regional economic and institutional constraints.
From a practical perspective, this study delivers valuable implications for firms, governments, and investors. Policy makers can leverage green alliances as a mechanism to guide industrial upgrading and environmental policy. Companies can strategically choose alliance partners based on their green innovation needs. Investors can view green alliance activities as a meaningful signal of a firm's commitment to sustainable innovation. By combining machine learning with strategic management and environmental economics, this research provides a data - driven roadmap for accelerating green transformation and highlights the key role of inter-organizational collaboration in shaping a sustainable future.
Dr Hui (Sophia) Guo is an Assistant Professor in Accounting at International Business School Suzhou (IBSS), Xi'an Jiaotong-Liverpool University (XJTLU). She obtained her PhD from Monash University. She joined XJTLU in September 2024. Her research interests are in the broad areas of financial accounting, auditing, and tax.
Finance Research Letters is an academic journal covering all areas of finance (broadly defined). With an impact factor of 7.4, it aims to ensure the rapid publication of important new results in finance. The journal particularly focuses on studies that explore the replicability or lack thereof of established results, examine the transnational applicability of previous findings, challenge existing methodological approaches, or demonstrate the methodological contingency of findings.
23 Jul 2025