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Article
Peer-Review Record

Navigating Green Innovation in High-Tech Manufacturing: The Roles of Customer Concentration and Digital Transformation

Sustainability 2024, 16(15), 6358; https://doi.org/10.3390/su16156358
by Lijun Fan 1, Yang Guo 2,3, Yiwen Wang 3,* and Wei Wang 4
Reviewer 1: Anonymous
Reviewer 2: Anonymous
Reviewer 3:
Sustainability 2024, 16(15), 6358; https://doi.org/10.3390/su16156358
Submission received: 11 June 2024 / Revised: 3 July 2024 / Accepted: 22 July 2024 / Published: 25 July 2024

Round 1

Reviewer 1 Report

Comments and Suggestions for Authors

 

1. The introduction can be improved by highlighting the contribution. Although the introduction is long, it is not very clear what is new and what is already known. It would be good to summarize the contributions around the end of the introduction section. 

2. Customer concentration refers to the proportion of a company’s revenue derived from a few major customers. This concentration has a dual impact on internal resource allocation. How is this dual attribute factored in the current research? 

3. In line 308, it is noted that By optimizing resource allocation and enhancing market responsiveness, firms can achieve business diver-379 sification and market diversification, enhancing competitiveness and risk resilience. The following work should also be mentioned. Single-valued neutrosophic fuzzy Sombor numbers and their applications in trade flows between different countries via sea route.

4. The use of the control variables should be better explained. It seems there are somewhat arbitrary choices in the current model. A justification would be helpful. 

5. In Equation (1), you could mention the range of the coefficients. This would be more accurate in terms of the presentation. 

6. The tables presented for the statistical tests are good. It would be more attractive if you could present some heat maps or other visualizations such as box plots. Also, the assumptions for a t-test are not discussed.  

7. The limitations of the research could be discussed in the conclusion. This would show your deep critical reflections on the work and more naturally lead to some future directions.

 

Comments on the Quality of English Language

The language is fine. Some typos need to be fixed. 

Author Response

Comments 1: The introduction can be improved by highlighting the contribution. Although the introduction is long, it is not very clear what is new and what is already known. It would be good to summarize the contributions around the end of the introduction section.

Response 1: Thank you for your valuable comment. During the process of exploring the factors influencing green innovation, we focus on customer dependency and technological transformation as entry points, exploring how high-tech manufacturing firms can balance environmental and economic benefits through resource allocation. We introduce our contributions from three main aspects. Firstly, the study deepens the understanding of factors impacting green innovation. Secondly, it examines the interaction mechanisms between suppliers and customers in green innovation from a supply chain management perspective. Lastly, our research highlights the critical role of digital transformation in resource coordination within high-tech manufacturing firms. The revised Introduction section includes a detailed summary of these contributions.

 

Comments 2: Customer concentration refers to the proportion of a company’s revenue derived from a few major customers. This concentration has a dual impact on internal resource allocation. How is this dual attribute factored in the current research?

Respond 2: Thank you for your insightful query. By reviewing literature on customer concentration, we identify two mechanisms through which customer dependency affects firm performance: promoting and inhibiting. On one hand, increased reliance on core customers ensures steady business operations and revenue security. On the other hand, excessive dependence may diminish a firm’s ability to withstand external market shocks, adversely affecting its innovative performance. Given our focus on high-tech manufacturing firms, such dependency directly influences these firms’ resource allocation toward innovation, particularly green innovation. We propose that dependence on core customer demands may lessen these firms’ focus on green innovation, aligning their innovative activities more closely with specific product demands of these customers.

 

Comments 3: In line 308, it is noted that By optimizing resource allocation and enhancing market responsiveness, firms can achieve business diver-379 sification and market diversification, enhancing competitiveness and risk resilience. The following work should also be mentioned. Single-valued neutrosophic fuzzy Sombor numbers and their applications in trade flows between different countries via sea route.

Respond 3: Thank you for your valuable suggestion. We found the perspectives offered in the mentioned work provided enriching insights, particularly regarding the influence of individual interactions on decision-making. After a thorough review, we have incorporated these insights into our manuscript. Please refer to the revised Literature Review and Research Hypotheses section for the detailed modifications.

 

Comments 4: The use of the control variables should be better explained. It seems there are somewhat arbitrary choices in the current model. A justification would be helpful.

Respond 4: Thank you for your constructive comments. In the revised manuscript, we have thoroughly explained the selection of control variables, delving deeply into the potential relationships between these variables and green innovation. These include profitability, which equips firms with resources necessary for green technology investment; stock market performance, which influences strategic corporate decisions and investor confidence; and capital structure, which impacts a firm’s financial stability and its ability to fund environmentally sustainable projects. Profitability provides enterprises with the necessary resources to invest in green technologies, suggesting that higher profits may correlate with enhanced capacity and willingness to engage in environmental practices. Meanwhile, stock market performance influences corporate strategies and investor confidence, potentially driving firms to adopt green innovations to enhance their market image and attract eco-conscious investors. Lastly, the capital structure of a company affects its financial stability and ability to fund green projects, including those aimed at environmental sustainability. These discussions are now detailed in the revised Research Design section.

 

Comments 5: In Equation (1), you could mention the range of the coefficients. This would be more accurate in terms of the presentation.

Respond 5: Thank you for your valuable suggestion. As our empirical model is a panel data model, the coefficients in Equation (1) primarily reflect the influence mechanisms between variables. To maintain consistency between theoretical analysis and empirical results, we now predict the signs of the coefficients in the revised manuscript. This approach aligns with the research hypotheses outlined in Section 2, where we anticipate specific directional impacts of customer concentration and digital transformation on green innovation. Please refer to the revised Research Design section for the detailed modifications.

 

Comments 6: The tables presented for the statistical tests are good. It would be more attractive if you could present some heat maps or other visualizations such as box plots. Also, the assumptions for a t-test are not discussed. 

Respond 6: Thank you for your insightful feedback. Your suggestions have greatly enriched our approach to presenting empirical analyses. In the revised manuscript, we have included univariate tests, specifically t-tests, in Section 4.2 Baseline Test, to preliminarily validate our hypotheses. The results confirm that high-tech manufacturing firms with lower customer concentration and higher digital transformation demonstrate superior green innovation performance. These findings, which are consistent with our proposed hypotheses, substantiate our empirical analysis. Please refer to the revised Empirical Results section for these enhancements.

 

Comments 7: The limitations of the research could be discussed in the conclusion. This would show your deep critical reflections on the work and more naturally lead to some future directions.

Respond 7: Thank you for your valuable feedback. In the revised manuscript, we have added a discussion of the study’s limitations in Conclusion and proposed directions for future research. These limitations include the reliance on data primarily from the Chinese market, which may limit the generalizability of our findings to different industrial contexts, and the insufficient consideration of international market impacts on green innovation. Addressing these, we suggest that future research should incorporate data from multiple countries and integrate international factors into the research framework. This would enable a more comprehensive exploration of the factors affecting green innovation in high-tech manufacturing industries. Please see the revised Conclusion section for these detailed discussions.

Reviewer 2 Report

Comments and Suggestions for Authors

Reviewer Report on "Navigating Green Innovation in High-Tech Manufacturing: The Roles of Customer Concentration and Digital Transformation"

Title

The title "Navigating Green Innovation in High-Tech Manufacturing: The Roles of Customer Concentration and Digital Transformation" is succinct and informative. It clearly indicates the focus of the study on green innovation within high-tech manufacturing and highlights the specific roles of customer concentration and digital transformation. This precise titling effectively attracts the target audience and sets appropriate expectations for the content.

Abstract

The abstract provides a comprehensive summary of the research. It succinctly outlines the study's motivation, theoretical grounding, methodology, key findings, and practical implications. The clarity with which the abstract communicates the study's core aspects ensures that readers can quickly grasp the essence and significance of the research. The inclusion of key terms such as "green innovation," "customer concentration," and "digital transformation" enhances the abstract's effectiveness in conveying the study's relevance and contributions.

Introduction and Literature Review

The introduction effectively contextualizes the study within the broader discourse on environmental challenges and economic development, particularly in developing nations. It establishes the relevance of the research by highlighting the critical role of green innovation in high-tech manufacturing. The literature review is thorough and well-organized, providing a solid theoretical foundation based on the Resource-Based View. It meticulously reviews existing studies on green innovation, customer concentration, and digital transformation, thereby situating the research within the current academic landscape. The clear identification of research gaps and the articulation of the study's objectives are commendable, demonstrating a robust understanding of the field.

Methodology

The methodology section is well-detailed and methodically sound. The use of data from Chinese high-tech manufacturing firms over an extensive period (2007 to 2021) provides a strong empirical basis for the study. The explanation of how green innovation is divided into green process innovation and green product innovation enhances the clarity of the research design. The rigorous approach to data analysis and the inclusion of various moderating factors such as the external environment, internal governance, and managerial characteristics ensure a comprehensive examination of the research questions. The methodological rigor enhances the credibility and reliability of the findings.

Reporting of Findings

The findings are reported in an in-depth and systematic manner. The study provides clear evidence that customer concentration negatively affects green innovation, while digital transformation promotes it and mitigates the inhibitory effects of customer concentration. The nuanced analysis, distinguishing between green process innovation and green product innovation, adds depth to the findings. The exploration of how external environment, internal governance, and managerial characteristics influence these dynamics further enriches the report. The detailed presentation of results, supported by robust statistical analysis, ensures that the conclusions drawn are well-substantiated.

Conclusion and Practical Implications

The conclusion effectively summarizes the key findings and their implications. It highlights the practical significance of optimizing resource allocation and enhancing green innovation investment to promote sustainable regional economic development. The discussion on practical implications is particularly strong, offering valuable insights for policymakers, industry practitioners, and managers. The recommendations for leveraging digital technologies and improving internal governance to foster green innovation are both actionable and grounded in the study's empirical evidence. This practical orientation enhances the study's relevance and potential impact on real-world practices.

Limitations and Further Research Directions

While the article excels in many aspects, it notably lacks a discussion on the limitations of the study and directions for future research. Addressing these elements could provide a more balanced view of the research's scope and applicability. It would also guide subsequent studies to build upon this work, further enriching the academic dialogue around green innovation in high-tech manufacturing. Including these discussions would enhance the overall comprehensiveness and rigor of the article.

Recommendation

In summary, the article "Navigating Green Innovation in High-Tech Manufacturing: The Roles of Customer Concentration and Digital Transformation" is a well-crafted and insightful contribution to the field. It excels in its clear and concise communication, robust theoretical grounding, meticulous methodology, and comprehensive reporting of findings. The practical implications discussed are highly relevant and provide a clear pathway for future actions. However, the absence of a discussion on limitations and future research directions is a notable gap. Addressing this minor revision would enhance the article's comprehensiveness and scholarly contribution. Thus, I recommend a minor revision to incorporate these aspects.

Overall, this study is a valuable addition to the literature on green innovation and high-tech manufacturing.

Author Response

Comments 1: In summary, the article "Navigating Green Innovation in High-Tech Manufacturing: The Roles of Customer Concentration and Digital Transformation" is a well-crafted and insightful contribution to the field. It excels in its clear and concise communication, robust theoretical grounding, meticulous methodology, and comprehensive reporting of findings. The practical implications discussed are highly relevant and provide a clear pathway for future actions. However, the absence of a discussion on limitations and future research directions is a notable gap. Addressing this minor revision would enhance the article's comprehensiveness and scholarly contribution. Thus, I recommend a minor revision to incorporate these aspects.

Respond 1: Thank you for your valuable feedback. In response to the recommendation, we have incorporated a discussion on the limitations and proposed future research directions within the Conclusion section of the revised manuscript. We acknowledge two primary limitations of our study. Firstly, our data primarily derives from high-tech manufacturing firms within the Chinese market, which may limit the generalizability of our findings to other market structures. Secondly, our analysis may not fully account for the external impacts of international markets on green innovation. Addressing these points, we suggest that future research should include data from multiple countries and integrate international factors into the research framework. This approach would allow for a more comprehensive examination of the factors influencing green innovation in high-tech manufacturing firms. Please refer to the revised Conclusion section for the detailed modifications.

Reviewer 3 Report

Comments and Suggestions for Authors

The aim of the research was to develop strategies, but the strategies were not mentioned in the results and recommendations section. Developed strategies should be clearly stated and discussed.

 

Comments on the Quality of English Language

The aim of the research was to develop strategies, but the strategies were not mentioned in the results and recommendations section. Developed strategies should be clearly stated and discussed.

Author Response

Comments 1: The aim of the research was to develop strategies, but the strategies were not mentioned in the results and recommendations section. Developed strategies should be clearly stated and discussed.

Respond 1: Thank you for your valuable insights. The core focus of this research was to explore the factors influencing green innovation within high-tech manufacturing enterprises. Initially, we aimed to assess the impacts of customer dependency and technological transformation on green innovation based on the Resource-Based View. The empirical results revealed the negative impacts of customer dependency on green innovation, prompting a deeper investigation into the underlying reasons for this phenomenon from the perspectives of both product and process innovation. In terms of strategy development, the discussion and conclusion sections of our manuscript delve into the design of innovation strategies from a resource perspective. Due to financial resource constraints, high-tech manufacturing firms' investment in green innovation tends to align closely with the actual needs of core customers, elucidating why increased customer concentration diminishes green innovation output. This inhibitory effect of customer concentration on green innovation is further elucidated by its impact on green product innovation. Additionally, we analyzed from a supply chain management perspective how high-tech firms can effectively design innovation strategies. The production and sales processes in high-tech manufacturing firms are easily influenced by the demands of major customers, making green innovation decisions closely tied to customers’ environmental commitments. With the leverage of digital technologies, high-tech manufacturing firms can not only better coordinate supply and demand relationships with customers but also enhance resource allocation efficiency, providing essential technical support for fostering continual green innovation. For a comprehensive overview of the developed strategies and their implications, please refer to the enriched Discussion and Conclusions sections in the revised manuscript.

Round 2

Reviewer 1 Report

Comments and Suggestions for Authors

The paper is improved. I recommend it for publication. 

Comments on the Quality of English Language

The writing is good. 

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