LAUSR

Smart services are expected to solve the dilemma of development and emission reduction, but there is still no conclusive evidence on whether and how they work. This article aims to explore the relationship between smart services and sustainable green transformation and the effect mechanism. To achieve this goal, a text mining analysis is performed to assess 970 Chinese listed manufacturing enterprises’ smart services development; a regression analysis is then conducted. The results show that smart services have a significant positive impact on the quality and quantity of green innovation, especially for heavily polluting enterprises. The substitution of technology and labor for capital, as well as the upgrading of human resource quality, are effective mechanisms. Smart services can assist as a management strategic tool to balance environmental protection and development, but such an effect fails to work in areas not covered by new infrastructure and is weaker for private enterprises.