Supply chain green gap and firm greenwashing: an institutional isomorphism perspective within the supply chain field

Purpose Supply chain green gap refers to the disparity in the green development levels between a focal firm and its upstream suppliers and downstream customers. Drawing on the institutional isomorphism perspective within the supply chain context, this study aims to understand how supply chain green gap influence firms’ green behavior and the strategic adoption of greenwashing. Design/methodology/approach Using a sample of Chinese A-share listed companies from 2012 to 2023, the authors empirically test the impact of supply chain green gap on corporate greenwashing and its mechanisms. Distinguishing the relative positions of firms and supply chain partners in terms of green development, the authors further discuss whether and how firms conduct greenwashing in different ways. Findings Supply chain green gap leads to firm greenwashing. When a firm’s level of green development is below the level of supply chain partners, it tends to engage in “talking more.” Conversely, when a firm’s green development exceeds the level of supply chain partners, it tends to engage in “doing less.” Supply chain green gap exacerbates information asymmetry, increases transactional volatility and creates oversight gaps, all of which contribute to the firm greenwashing. Furthermore, supply chain concentration and supply chain instability amplify these effects, while environmental sensitivity and environmental regulation help mitigate the occurrence of greenwashing. Practical implications This study highlights how supply chain green gaps induce firm greenwashing via asymmetric institutional pressures, enriching institutional theory. Aligning green strategies with supply chain partners and enhancing regulatory coordination can reduce symbolic compliance and corporate greenwashing. Originality/value The authors introduce an innovative concept of the supply chain green gap and present heterogeneous viewpoints on corporate greenwashing through the application of an institutional isomorphism framework.