Digital-driven green: Does supply chain digitalization accelerate corporate green transition?

Area of Science:

• Business and Economics
• Environmental Science
• Information Systems

Background:

• The intersection of digital economy and green development is critical for manufacturing.
• The impact of supply chain digitalization (SCD) on corporate green transition (CGT) is not well understood.

Purpose of the Study:

• To construct firm-level indices for SCD and CGT.
• To empirically investigate the effect of SCD on CGT in China's manufacturing sector.
• To explore the mediating mechanisms and moderating factors in the SCD-CGT relationship.

Main Methods:

• Textual analysis of annual reports from Chinese A-share manufacturing enterprises.
• Construction of firm-level SCD and CGT indices.
• Econometric analysis to test hypotheses on impact and mechanisms.

Main Results:

• SCD positively and significantly impacts CGT.
• Green continuous innovation, supply chain stability, and financing constraints mediate the relationship.
• The positive effect is stronger in areas with low climate policy uncertainty and green finance zones, and for state-owned enterprises.

Conclusions:

• SCD is a key enabler of CGT in manufacturing.
• The findings highlight the importance of policy and enterprise ownership in this digital-green nexus.
• Practical implications for firms aiming for sustainable development through digitalization.