The Effect of Buyer–Supplier Firm Age Distance on Green Innovation: A Resource Dependence Perspective

ABSTRACT By integrating the perspectives of age dependence and resource dependence theory (RDT), this paper explores the relationship between dependence on age‐distant suppliers and green innovation. Meanwhile, considering the mechanisms adopted by firms to manage supplier dependence, we also examine the moderating effects of various dependency management mechanisms. Utilizing a dataset of 1427 dyad‐year observations comprising 369 unique Chinese high‐polluting listed firms between 2008 and 2020, we find that the age distance between a buyer and its suppliers has a positive effect on green innovation. However, this positive association is weakened as the buyer firm progresses along its lifecycle stages, possesses state ownership (formal links with the government), or exhibits a high degree of board network centrality (informal links with other stakeholders). Our study contributes to the literature by offering important theoretical and practical implications and further refines RDT in the context of green innovation.