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Public scrutiny and green spillover in buyer-supplier relationships: Exploring contingent effect of embeddedness

Author

Listed:
  • Liu, Zijia
  • Jin, Chenfei
  • Wu, Bao
  • Shen, Tongtong
  • Gu, Qiuyang

Abstract

This study investigates how public scrutiny of corporate ESG controversies drives sustainable development within buyer-supplier relationships. Drawing on the embeddedness perspective and using panel data of Chinese A-share listed firms, we find that public ESG scrutiny significantly promotes green innovation in focal firms. Notably, such green innovation serves as a crucial mediator, generating positive spillover effects that enhance the green total factor productivity (GTFP) of suppliers. We further explore the contingent roles of relational and technological embeddedness in this spillover process. Our results reveal that both higher relational embeddedness and greater technological embeddedness strengthen the positive impact of focal firms’ green innovation on suppliers’ GTFP.

Suggested Citation

  • Liu, Zijia & Jin, Chenfei & Wu, Bao & Shen, Tongtong & Gu, Qiuyang, 2026. "Public scrutiny and green spillover in buyer-supplier relationships: Exploring contingent effect of embeddedness," Finance Research Letters, Elsevier, vol. 93(C).
    • Handle: RePEc:eee:finlet:v:93:y:2026:i:c:s1544612326001613
    DOI: 10.1016/j.frl.2026.109630
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