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Published on: September 27, 2019
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Customer digitalization and supplier greenwashing.
1School of Economics, Guangdong University of Finance and Economics, 21 Luntou Road, Guangzhou, 510320, PR China.
Journal of Environmental Management
|August 30, 2025
Summary
Customer digitalization significantly reduces upstream supplier greenwashing. This digital transformation enhances environmental, social, and governance (ESG) disclosure and promotes green innovation, leading to more sustainable supply chains.
Area of Science:
- Business and Management
- Supply Chain Management
- Sustainability Studies
Background:
- Growing concerns regarding greenwashing practices.
- Increasing demand for sustainable and transparent supply chains.
- Need to understand the impact of digitalization on corporate environmental behavior.
Purpose of the Study:
- To investigate the influence of customer firms' digital transformation on upstream suppliers' greenwashing behavior.
- To identify the mechanisms through which digitalization affects greenwashing.
- To explore moderating factors influencing this relationship.
Main Methods:
- Empirical analysis using a Chinese sample from 2012 to 2022.
- Econometric methods to address endogeneity concerns.
- Robustness checks to validate findings.
Main Results:
- Customer digitalization effectively reduces suppliers' greenwashing.
- Digital transformation enhances voluntary ESG disclosure and collaborative green innovation.
- Customer-driven reputational pressure intensifies as a result of digitalization.
- The effect is more pronounced for suppliers with high customer dependency and low bargaining power, and for state-owned enterprise (SOE) customers under strict environmental regulations.
Conclusions:
- Customer digitalization serves as a novel governance mechanism to curb upstream greenwashing.
- Digital capabilities enhance accountability for sustainable practices across supply chains.
- Findings contribute to understanding digital transformation's role in promoting supply chain sustainability.
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