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Customer Environmental Performance and Supplier Green Innovation: A Sustainable Supply Chain Perspective

Author

Listed:
  • Mingnan Yang

    (College of Economics and Management, China Agricultural University, Beijing 100083, China)

  • Aoyu Hou

    (International College Beijing, China Agricultural University, Beijing 100083, China
    National Innovation Center for Digital Fishery, China Agricultural University, Beijing 100083, China)

  • Pingping Wang

    (International College Beijing, China Agricultural University, Beijing 100083, China
    National Innovation Center for Digital Fishery, China Agricultural University, Beijing 100083, China)

  • Li Chai

    (College of Economics and Management, China Agricultural University, Beijing 100083, China
    International College Beijing, China Agricultural University, Beijing 100083, China
    National Innovation Center for Digital Fishery, China Agricultural University, Beijing 100083, China)

Abstract

With the growing emphasis on sustainable development, the impact of customer environmental performance on innovation activities has attracted more attention. Using a dataset of Chinese A-share listed companies from 2009 to 2022, this study empirically investigates the relationship between customer environmental performance and supplier green innovation. The results show that customer environmental performance has a significant positive effect on supplier green innovation. Mechanism analysis reveals that customer environmental performance promotes supplier green innovation through four pathways: supply chain transmission, market investment expectations, institutional policies, and financial constraints. The impact of customer environmental performance on supplier green innovation is more pronounced when the customer enterprise is state-owned, the supplier enterprise is state-owned, or the supplier enterprise holds ISO14001 certification. This study contributes to the literature on supply chain sustainability and provides valuable insights for enterprises on enhancing competitiveness and promoting sustainable supply chain transformation through improved environmental performance.

Suggested Citation

  • Mingnan Yang & Aoyu Hou & Pingping Wang & Li Chai, 2025. "Customer Environmental Performance and Supplier Green Innovation: A Sustainable Supply Chain Perspective," Sustainability, MDPI, vol. 17(3), pages 1-20, February.
  • Handle: RePEc:gam:jsusta:v:17:y:2025:i:3:p:1248-:d:1583257
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    References listed on IDEAS

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    1. David Williamson & Gary Lynch-Wood & John Ramsay, 2006. "Drivers of Environmental Behaviour in Manufacturing SMEs and the Implications for CSR," Journal of Business Ethics, Springer, vol. 67(3), pages 317-330, September.
    2. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
    3. Ailie K.Y. Tang & Kee‐hung Lai & T. C. E. Cheng, 2012. "Environmental Governance of Enterprises and their Economic Upshot through Corporate Reputation and Customer Satisfaction," Business Strategy and the Environment, Wiley Blackwell, vol. 21(6), pages 401-411, September.
    4. Tang, Jinghua & Wang, Xiaoming & Liu, Qigui, 2023. "The spillover effect of customers' ESG to suppliers," Pacific-Basin Finance Journal, Elsevier, vol. 78(C).
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    Cited by:

    1. Wanping Wang & Licheng Sun, 2025. "Low-Carbon Restructuring, R&D Investment, and Supply Chain Resilience: A U-Shaped Relationship," Sustainability, MDPI, vol. 17(13), pages 1-20, June.

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