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From bytes to green: The impact of supply chain digitization on corporate green innovation

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  • Ma, Jing
  • Li, Qing
  • Zhao, Qiuyun
  • Liou, Jennhae
  • Li, Chen

Abstract

A significant share of corporate carbon emissions stems from the supply chain, necessitating an analysis of how supply chain digitalization influences green innovation in the digital age. This paper examines this impact using data from Chinese listed firms (2012−2022). Theoretically, the study posits that supply chain digitalization facilitates green innovation through two primary mechanisms: enhancing upstream and downstream integration and boosting the internal efficiency of supply chain management at nodal enterprises. Empirically, a quasi-natural experiment leveraging the Supply Chain Innovation and Application Pilot Program serves as an exogenous shock. Key findings include: (1) Supply chain digitalization enhances corporate green innovation, with robust results across various tests. (2) The effect is mainly driven by enhanced supply chain integration—more from supplier concentration than customer concentration—and improved internal supply chain management efficiency. (3) The impact has three characteristics: Quality-first Effect, Crowding-in Effect and Persistence Effect. Specifically, supply chain digitalization mainly boosts high-quality green invention patent applications without crowding-out other non-green innovation, while also positively influences sustained green innovation. (4) Supply chain digitalization primarily enhances green innovation in End-of-Pipe and Process Control Technologies, with limited effects on Pollution Prevention at Source.

Suggested Citation

  • Ma, Jing & Li, Qing & Zhao, Qiuyun & Liou, Jennhae & Li, Chen, 2024. "From bytes to green: The impact of supply chain digitization on corporate green innovation," Energy Economics, Elsevier, vol. 139(C).
    • Handle: RePEc:eee:eneeco:v:139:y:2024:i:c:s0140988324006509
    DOI: 10.1016/j.eneco.2024.107942
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    Cited by:

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    10. Zhu, Xiang & Chen, Hongtao & Xiang, Erwei & Qi, Yingjin, 2025. "Digital transformation and corporate green technology transfer: The moderating effect of executive green cognition," Finance Research Letters, Elsevier, vol. 76(C).
    11. Gan, Zhongxin & Yusupov, Nurmukhammad, 2025. "Supply chain ESG and green innovation at midstream firms: An integrated approach with both supplier and buyer sides," Research in International Business and Finance, Elsevier, vol. 78(C).
    12. Shushan Zhang & Cheng Gu & Peiwen Zhang, 2026. "The Effect of Supply Chain Digitalization on Firm Competitiveness: Evidence from China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 17(1), pages 831-859, February.
    13. Zhang, Tianze & Zhao, Xueqi & Xi, Yue, 2025. "Greening the chain: How digital transformation of supply chains drives corporate innovation in China's A-share market," International Review of Financial Analysis, Elsevier, vol. 103(C).
    14. Li, Chunmei & Yang, Gang & Cai, Wanhuan & Shi, Hanfei, 2025. "Enterprise digital transformation and green competitiveness: Opportunity or crisis?," Finance Research Letters, Elsevier, vol. 77(C).
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    17. Gu, Jiafeng, 2025. "Did supply chain digitization contribute to corporate green energy innovation? The mediating role of asset receivable management and policy spillovers," Energy Economics, Elsevier, vol. 143(C).
    18. Lingwei Zhang & Hui Huang & Na Chen & Huangxin Chen, 2025. "Policy-Driven Supply Chain Digitalization and Corporate Sustainability: Evidence from China’s Innovation Pilot," Sustainability, MDPI, vol. 17(19), pages 1-28, September.
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    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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