Abstract: Based on the WSR methodology, this paper uses 80 manufacturing companies listed in Shanghai and Shenzhen A-shares as research samples, and uses fuzzy set qualitative comparative analysis to explore the green transition mechanisms of manufacturing enterprises. The results show that there exist three high-level green transition paths, i.e., flexible and change-oriented path, structural balance path, and government-supported path; and two low-level green transition paths, i.e., stagnant path, and monopolistic and profit-oriented path. The study finds that financial flexibility is particularly important for the green transition of enterprises. In the strategic decision-making process of green transition in large enterprises, government subsidies can effectively motivate strategic managers' willingness to pursue green transition. Because of the capacity paradox dilemma, large firms with high levels of equity balance will cater to the conservative goals of small-sized and medium-sized shareholders once they lack the financial flexibility or the liquidity advantage of government subsidies. Companies with low levels of equity balance are prone to fall into the trap of "shareholder negativism", both of which will lead to inefficient green transition outcomes.