Abstract
This study examines the impact of inward foreign direct investment (IFDI) on the green transition of local enterprises in China, a developing economy undergoing significant sustainability transformations. While prior research highlights the economic benefits of IFDI, limited studies explore its role in fostering environmental sustainability. Drawing from the entrepreneurial ecosystem perspective, we propose that IFDI facilitates green transitions by enabling technology spillovers, regulatory alignment, and knowledge transfer. We further investigate moderating effects of firm-level factors, including state ownership (SOEs vs. POEs), firm status, and perceived climate risk. We aim to contribute to international business and sustainability literature by addressing a key research gap on firm-level engagement in green transitions. We offer implications for enterprises, policymakers, and industry stakeholders by demonstrating how IFDI can influence sustainable development. Understanding these dynamics is crucial as China shifts toward a greener economy amid global environmental challenges.