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Signaling or Substantiating? Green Technology Standard-Setting, Knowledge Integration, and Dual Green Innovation Across the Firm Life Cycle

Xun Zhang,Wenjing Zhao,Biao Xu,Jun Wu

Published 2026 in Sustainability

ABSTRACT

This study examines how corporate participation in green technology standard-setting affects two dimensions of green innovation–substantive and symbolic green innovation–through the mediating role of knowledge integration and across different stages of the firm life cycle. Analyzing panel data from Chinese A-share listed firms (2010–2023), we find that standard-setting participation significantly enhances both types of innovation, with a stronger and more enduring effect on substantive innovation. The effects exhibit clear life cycle heterogeneity: substantive green innovation is consistently enhanced across all stages of the firm life cycle, whereas symbolic green innovation is predominantly reinforced during the maturity stage. Grounded in the knowledge-based view and institutional theory, our findings highlight how institutional engagement fosters sustainable innovation by strengthening firms’ capacity for knowledge acquisition and integration. This research advances understanding of the strategic value of standard-setting in sustainability efforts and provides actionable insights for aligning standardization practices with long-term innovation goals.

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