Exploring the role of IT for environmental sustainability in China: An Political-Economic Framework

Abstract

Recently, the role of information technology (IT) for energy and environmental sustainability hasreceived wide attention from both academics and practitioners because IT plays a crucial role in theenergy consumption and environmental related issues. This study explores the role of IT for energy andenvironmental sustainability in China by proposing a research model based on the political�economicframework. Drawing upon the stakeholder theory, we identify public concerns and regulatory forces askey political factors, and cost reduction and differentiation as key economic factors that affect theadoption of green IT and IT for green. The survey method is employed to test our model and hypothesesand PLS is chosen for data analysis. Our results reveal that economic factors, including cost reductionand differentiation are critical in influencing Chinese companies to adopt IT for environmentalsustainability strategy. Our research suggests that the role of IT for environmental sustainability maygo beyond cost reduction and contribute to competitive advantage for the firms. With the proper use ofIT and IT related systems and equipments, a firm can improve its competitiveness while continuing tobe environmentally friendly.