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