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Firm ESG Performance and Supply-Chain Total-Factor Productivity

Author

Listed:
  • Feng Yang

    (School of Business, Liaocheng University, Liaocheng 252059, China
    These authors contributed equally to this work.)

  • Tingwei Chen

    (School of Economics, Shandong Normal University, Jinan 250358, China
    These authors contributed equally to this work.)

  • Zongbin Zhang

    (School of Economics, Shandong Normal University, Jinan 250358, China)

  • Kan Yao

    (The Center For Economic Research, Shandong University, Jinan 250100, China)

Abstract

Promoting firms’ green evolution and achieving sustainable, high-quality development have become crucial for firms’ sustainability. This study uses data from publicly listed automotive manufacturing firms from 2009 to 2022 to examine the impact of target firms’ environmental, social, and governance (ESG) performance on total-factor productivity (TFP) at upstream and downstream firms from a supply-chain perspective. By employing a two-way, fixed-effects model, mediation analysis, and a moderation model, the study provides comprehensive insights. The findings reveal the following: (1) The ESG performance of target firms in automotive manufacturing significantly improves the TFP of downstream customers, and this conclusion is robust even when using instrumental variable methods, additional control variables, and rigorous robustness tests. (2) Mechanism analysis indicates that the ESG performance of target firms alleviates the financing constraints of their customers, thereby positively impacting the customers’ TFP. Additionally, the study finds that the monopolistic power of the target firm negatively moderates the relationship between its ESG performance and the TFP of its customers. These empirical findings enhance the understanding of supply-chain spillover effects and provide a new theoretical foundation for improving firms’ ESG performance.

Suggested Citation

  • Feng Yang & Tingwei Chen & Zongbin Zhang & Kan Yao, 2024. "Firm ESG Performance and Supply-Chain Total-Factor Productivity," Sustainability, MDPI, vol. 16(20), pages 1-19, October.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:20:p:9016-:d:1501324
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    Cited by:

    1. Yuan Yuan & Hong Dai & Jiaqi Ma, 2025. "The Impact of Corporate ESG Performance on Supply Chain Resilience: A Mediation Analysis Based on New Quality Productive Forces," Sustainability, MDPI, vol. 17(10), pages 1-20, May.
    2. Magaletti, Nicola & Nortarnicola, Valeria & Di Molfetta, Mauro & Mariani, Stefano & Leogrande, Angelo, 2025. "Logistics Performance and ESG Outcomes: An Empirical Exploration Using IV Panel Models and Machine Learning," SocArXiv huxcs_v1, Center for Open Science.
    3. Da HUO & Tianying SUN & Wenjia GU & Aidi TANG, 2025. "AI and ESG - New Quality Productivity in Digital Economy," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 5-23, July.
    4. Jiaxin Zhuang & Yinglin Wang & Shengxu Shi, 2025. "ESG Enterprise Hybrid Risk Diversification Mechanism Based on Third‐Party Guarantee," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(7), pages 4032-4055, October.
    5. Junzhi Zhang & Yuchen Zhang, 2025. "Research on Collaborative Performance of Green Supply Chain Enabled by New Quality Productivity," Sustainability, MDPI, vol. 17(9), pages 1-23, April.

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