Cross-border E-commerce and Corporate Green Innovation: Empirical Findings from Chinese Listed Companies

Introduction

A research report released by the frontier journal *Frontiers in Sustainability* in October 2025 has brought the relationship between cross-border e-commerce and corporate green innovation into the global digital retail spotlight. Based on panel data of Chinese listed companies from 2013 to 2023, the study used web crawler technology and constructed a cross-border e-commerce keyword dictionary, took the timing of firms' participation in cross-border e-commerce as a quasi-natural experiment, and employed a difference-in-differences model to reach a clear-cut conclusion: participation in cross-border e-commerce significantly enhances firms' green innovation levels.

At a time when digital retail and sustainable development are advancing on parallel tracks, this finding provides a new business logic reference for the global e-commerce ecosystem.

Event Overview

The research team is from the School of Applied Economics at the University of Chinese Academy of Social Sciences and the School of Software and Microelectronics at Peking University. To precisely identify firm-level cross-border e-commerce participation, the researchers crawled corporate announcements and used the cross-border e-commerce keyword dictionary to determine when firms ventured into cross-border e-commerce business, rather than adopting the commonly used "cross-border e-commerce comprehensive pilot zone" policy dummy variable. This micro-level measurement approach enhances the credibility of causal identification and provides a replicable methodological template for research on digital trade and innovation behavior.

The core empirical results show that after firms conduct cross-border e-commerce business, their green patent applications increase significantly. In terms of magnitude, cross-border e-commerce can raise green patent applications by about 3% (see the original text for specific values). Mechanism tests find that cross-border e-commerce indirectly promotes green innovation by easing corporate financing constraints and facilitating digital transformation. Meanwhile, the quality of environmental information disclosure positively moderates this effect—the better a firm's information disclosure, the stronger the promoting effect of cross-border e-commerce on green innovation.

The study further reveals heterogeneity: among high-tech firms, firms in highly polluting industries, large state-owned enterprises, and enterprises in central and western China, the green innovation incentive effect of cross-border e-commerce is more prominent.

Market Background

China's cross-border e-commerce has undergone a transformation from quantitative expansion to quality upgrading over the past five years. Citing industry data, the study points out that China's cross-border e-commerce transaction volume grew from RMB 1.06 trillion in 2018 to RMB 2.63 trillion in 2024, with B2B transactions accounting for more than 70% and B2C growing at a faster pace. This market expansion has enabled a large number of domestic manufacturers and brands to step onto the global digital trade stage.

At the same time, global sustainability regulatory pressure has surged. The EU Carbon Border Adjustment Mechanism (CBAM) and the new Battery Regulation impose stricter carbon footprint disclosure and material recycling requirements on exporters. These external constraints raise the threshold for export compliance, yet they also drive firms to incorporate green innovation into their long-term strategies.

Platform and Brand ImpactCross-border e-commerce platforms are playing the role of an "invisible hand" in the green transformation. The report cites examples: Amazon's "Climate Pledge Friendly" program provides traffic and sales incentives for certified eco-friendly products, while Germany's OTTO platform gives priority exposure to green-certified goods. These platform mechanisms directly convert sustainability attributes into commercial returns, forcing sellers to adjust product design and supply chain management.

Large Chinese retail groups such as China Duty Free Group have already launched environmental initiatives, adopting biodegradable packaging materials and collaborating with suppliers to develop sustainable products. However, the study also notes that many small and medium-sized enterprises, constrained by resources, find it difficult to conduct in-depth green R&D; the varying environmental standards across countries also increase the cost of compliance adjustments. Therefore, the green innovation effect of cross-border e-commerce may take on a pattern of "head-driven leadership, long-tail follow-up."For global brands and sellers, cross-border e-commerce is no longer merely a "sales channel," but a digital arena capable of reshaping corporate innovation capabilities, environmental strategies, and value chain positioning. Whoever is first to internalize green innovation as an operational capability will be more likely to gain a structural advantage in the next round of global digital retail competition.

Key Insights

• Participation in cross-border e-commerce has a significant causal promotional effect on corporate green innovation.
• Easing financing constraints and digital transformation are the two core transmission pathways.
• The higher the quality of environmental information disclosure, the stronger the green innovation effect of cross-border e-commerce.
• High-tech, highly polluting, large state-owned, and central and western regional enterprises benefit more significantly.
• Platform sustainable incentive mechanisms and regulatory pressure together constitute the external driving forces.

Recommended Tags

global ecommerce; cross-border retail; green innovation; digital commerce; consumer trends; marketplace economy; retail technology; sustainability; ecommerce logistics; China market

Related Markets

China, North America, Europe, Southeast Asia, Middle East, Latin America

Related Platforms

Amazon, OTTO, Alibaba.com, DHgate

Source

This article is based on the following academic paper: Zhang, S., He, L., & Zhang, Y. (2025). Cross-border e-commerce and enterprise green innovation. *Frontiers in Sustainability*, 6, 1664916. https://doi.org/10.3389/frsus.2025.1664916