Purpose Digital technologies trigger the fourth industrial revolution. This study aims to clarify the relationship between digital technology application, substantive knowledge collaboration and sustainable growth of Chinese renewable energy industry. The potential role of employee digital skill training is also included in the research framework. Design/methodology/approach The research hypotheses in this study are validated by fixed-effect estimations and data from listed companies in Chinese renewable energy industry from 2007 to 2023. Findings The empirical results indicate that digital technology application would foster sustainable growth of Chinese renewable energy industry through improved substantive knowledge collaboration. Besides, the positive impact of digital technology application on substantive knowledge collaboration will be strengthened by employee digital skill training. In addition, the results of heterogeneity analysis demonstrate that digital technology application can only significantly promote the sustainable growth of small firms and those in the western region. Originality/value This study elucidates how digital technology application cultivates firm sustainable growth through enhanced substantive knowledge collaboration, while highlighting digital human capital development as a critical moderator. Drawing on heterogeneity analysis, we document a “success trap” confronting large enterprises during this process and posit a substitutive relationship between digital technology and transportation infrastructure in the western region, thereby offering novel insights for scholars and practitioners.
Jiang et al. (Fri,) studied this question.