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

Wenze Wu¹, Mei Sun², Mark Goh³

¹Institute of Carbon Neutrality Development, Jiangsu University, Jiangsu, 212013, China; School of Mathematical Sciences, Jiangsu University, Zhenjiang, 212013, China.

Journal of Environmental Management

|May 10, 2026

Summary

Supply chain digitalization (SCD) significantly boosts corporate green transition (CGT) in manufacturing. This digital transformation aids green innovation, supply chain stability, and eases financing, especially in supportive policy environments.

Keywords:

Corporate green transition Manufacturing sector Supply chain digitalization Textual analysis

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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.