Effects of supply chain digitization on carbon performance of manufacturing corporations

Purpose From the perspective of dynamic capabilities theory, supply chain digitization (SCD) enables manufacturing corporations to adapt to carbon neutrality goals by enhancing their ability to sense, seize and reconfigure resources. However, trade policy uncertainty (TPU) disrupts corporations’ strategic planning and investment decisions, affecting SCD transformation. This paper provides insights into the relationship between SCD and corporate carbon performance (CCP) under TPU, aiming to assess how SCD can enhance a corporation’s dynamic ability to achieve emissions reductions and growth. Design/methodology/approach Using data from listed Chinese manufacturing corporations, the difference-in-differences model, mechanism-testing model and moderating-effects model are tested. Findings The findings reveal that SCD significantly enhances CCP, with a stronger promotion effect observed among corporations characterized as state-owned, heavy pollution, capital- and technology-intensive and positioned at the midstream of the industrial chain. The mechanism is reflected in the impact of SCD on corporate green innovation, total factor productivity and internal control capabilities. Furthermore, TPU exhibits a negative moderating effect on SCD and CCP. Originality/value This paper explores the causal effect of SCD on CCP in conjunction with dynamic capabilities theory. This provides inspiration for carbon management and emission reduction dividends from SCD transformation in manufacturing corporations.