Enhancing Corporate Sustainability Performance Through Supply Chain Low‐Carbon Transformation: A Stakeholder Theory Perspective

ABSTRACT Supply chain low‐carbon transformation (SCLCT) is regarded as an important strategy for corporate sustainability, but whether SCLCT can enhance corporate sustainability performance (CSP) remains unclear. To fill this research gap, this study investigates the effect of SCLCT on CSP. Grounded in stakeholder theory and organizational legitimacy theory, this study employs fixed effects models to analyze 2011–2023 panel data on Chinese A‐share listed manufacturing firms. The results demonstrate that SCLCT has a positive effect on CSP. Specifically, SCLCT improves CSP through three potential mechanisms: by reducing external transaction costs, fostering green innovation, and increasing employment opportunities. Furthermore, both supply chain concentration and media attention positively moderate the relationship between SCLCT and CSP. This study aims to provide theoretical insights and practical guidance for managers and policymakers seeking to enhance CSP through SCLCT strategies.