Achieving Good ESG in China’s State Firms: A New Way to Look at the Mix

The study looks at how Chinese state‑owned companies do in environmental, social and governance (ESG) areas. Instead of treating each factor separately, it examines how different “institutional logics” combine to shape outcomes. The researchers used a method called fsQCA and analysed data from 387 companies listed on China’s A‑share market between 2015 and 2023. They added a political logic element to the usual market, governance and social logics, creating a four‑logic framework.Results show that firms can reach high ESG scores through several paths, such as strong regulation paired with good governance or a market‑driven approach combined with social goals. When the needed logics are missing or do not fit together, ESG performance drops. The research also highlights differences between central and local state firms, and across industries, showing that one size does not fit all. Overall, the paper offers a fresh theoretical lens on how state enterprises manage ESG and suggests tailored ways to boost their practices.