The synergistic effects of digital finance and heterogeneous government subsidies on the green innovation of enterprises

Purpose This study theorizes a dual-path synergistic framework integrating digital finance (DF) with two distinct subsidy types – environmental protection subsidies (Subenv) and R&D subsidies (Subrd) – to promote corporate green innovation (GI). Design/methodology/approach Drawing on data from Chinese A-share listed companies, our final sample consists of 23,974 observations from 2011–2023. Findings The results suggest significant synergistic effects between DF and both Subenv and Subrd in promoting corporate GI. These effects are stronger in large cities and regions with stringent environmental regulations. Heterogeneity analysis reveals that Subenv-DF synergy is more pronounced in state-owned enterprises, large firms, high-pollution industries and nonhigh-tech sectors. In contrast, Subrd-DF synergy is significant only in state-owned enterprises, large firms, nonhigh-pollution industries and nonhigh-tech sectors. The findings underscore the context-dependent nature of DF’s enabling role in GI. Originality/value By explicating these dual pathways, the study bridges the gap between the static resource-based view and the dynamic capability perspective, proposing a contingency model of a “policy-finance-capability” alignment that underscores the contextual moderators of policy instrument effectiveness.