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Connected for a greener tomorrow: How supply chain digitalization enhances corporate green innovation?

Author

Listed:
  • Yang, Liuyi
  • Xu, Bingtao
  • Yang, Zhengjie
  • Yang, Xiaoyu

Abstract

Drawing on a dataset of 20,876 firm-year observations from Chinese listed enterprises between 2012 and 2023, this research examines the impact of supply chain digitalization (SCD) on corporate green innovation (GIN). We employ a dual fixed-effects model to isolate the specific contributions of digital integration to environmental outcomes. The empirical results establish a robust positive relationship, indicating that digitalization acts as a catalyst for green innovation. Mechanism analysis reveals that supply chain transparency functions as a critical partial mediator, channeling the benefits of digital data into sustainable practices. Furthermore, we identify distinct boundary conditions: the positive effect of SCD is significantly reinforced by internal green strategic actions and external government green subsidies. Heterogeneity tests further demonstrate that these effects are particularly significant in high-technology sectors and industries with high pollution intensity. By synthesizing the Resource-Based View with Stakeholder and Resource Dependence theories, this study clarifies the pathways through which digital capabilities drive sustainability, offering evidence-based recommendations for policymakers and business leaders navigating the dual transition of digitalization and decarbonization.

Suggested Citation

  • Yang, Liuyi & Xu, Bingtao & Yang, Zhengjie & Yang, Xiaoyu, 2026. "Connected for a greener tomorrow: How supply chain digitalization enhances corporate green innovation?," International Review of Economics & Finance, Elsevier, vol. 105(C).
    • Handle: RePEc:eee:reveco:v:105:y:2026:i:c:s1059056025010093
    DOI: 10.1016/j.iref.2025.104846
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    References listed on IDEAS

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