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Research Articles

The impact of air quality on industrial intelligence: evidence from Chinese industrial firms

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Pages 2420-2441 | Received 11 Aug 2022, Accepted 03 Mar 2023, Published online: 30 Mar 2023
 

Abstract

As Industry 4.0 develops, enterprises are investing in the industrial intelligent transformation. Using unique data from Chinese industrial enterprises, this paper investigates whether air quality affects the upgrading of industrial intelligence in enterprises. We find that decreased air quality improves industrial intelligence for enterprises, as enterprises increase their use of intelligent industrial robots when air pollution causes shortages of labour quantity and efficiency. Further analysis shows that large-scale enterprises and enterprises in areas with high economic development are more inclined to develop industrial intelligence in response to decreased air quality than their counterparts. In addition, the results indicate that the intelligent transformation of enterprises can improve their performance. This study provides a new perspective on the impact of environmental issues on corporate behaviour.

JEL CODES:

Disclosure statement

No potential conflict of interest was reported by the author(s).

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