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The Role of Circular Economy, Technology, and Finance in Green Supply Chain Management: Evidence From Developed Nations

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  • Jingxiao Zhang
  • Tufail Hussain
  • Pablo Ballesteros‐Pérez
  • Martin Skitmore
  • Syed Ale Raza Shah

Abstract

This study investigates the determinants of green supply chain management (GSCHM) in nine high‐income economies from 2006 to 2022. Using a panel structural equation model, it finds that economic complexity promotes GSCHM, while urbanization constrains it. Unexpectedly, digitalization and artificial intelligence (AI) negatively impact GSCHM, possibly due to poor integration, misaligned strategies, or rebound effects. These technologies also weaken the positive effects of the circular economy (CE), suggesting that digital tools may disrupt sustainability without strategic alignment. Financial depth and stability support GSCHM, whereas financial development and efficiency hinder it, indicating risks from unregulated financial expansion. Targeted green policies are called for—such as mandatory sustainability audits, green finance standards, and digital innovation oversight—led by governments, regulators, and industry bodies. These findings offer actionable insights for aligning economic, technological, and financial systems to strengthen GSCHM and promote long‐term sustainability.

Suggested Citation

  • Jingxiao Zhang & Tufail Hussain & Pablo Ballesteros‐Pérez & Martin Skitmore & Syed Ale Raza Shah, 2026. "The Role of Circular Economy, Technology, and Finance in Green Supply Chain Management: Evidence From Developed Nations," Business Strategy and the Environment, Wiley Blackwell, vol. 35(4), pages 5655-5676, May.
    • Handle: RePEc:bla:bstrat:v:35:y:2026:i:4:p:5655-5676
    DOI: 10.1002/bse.70442
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