Digital innovation network embedding and sustained green innovation: The dual knowledge recombination mechanism in Chinese manufacturing

Amid escalating environmental challenges and rapid digital transformation, sustained green innovation (SGI) has become a strategic imperative for manufacturing firms. Drawing on the knowledge-based view, this study examines whether and how firms’ digital innovation network embedding (DINE) enhances SGI through two complementary mechanisms—knowledge recombinative creation (KRC) and knowledge recombinative reuse (KRR). Using panel data on Chinese listed manufacturing firms from 2013 to 2021 and constructing patent co-application–based digital collaboration networks, we test the hypotheses with fixed-effects and instrumental-variable models. To mitigate endogeneity, DINE is instrumented by industry–province peer embedding (excluding the focal firm) and province-by-year fixed effects are absorbed to account for time-varying regional policy and institutional shocks. The results show that DINE significantly improves SGI, while KRC and KRR jointly mediate this relationship, explaining 37.5 % of the total effect. Robustness checks and endogeneity corrections support the validity of the findings. Moreover, the DINE–SGI linkage is stronger in technology-intensive industries, highlighting contextual contingencies in digital–green synergies. This study advances understanding of how digitally embedded knowledge flows sustain green innovation and offers practical implications for building digital collaboration ecosystems that support long-term sustainability in emerging economies.