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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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    References listed on IDEAS

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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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