Connected for a greener tomorrow: How supply chain digitalization enhances corporate green innovation?

Drawing on a dataset of 20,876 firm-year observations from Chinese listed enterprises between 2012 and 2023, this research examines the impact of supply chain digitalization (SCD) on corporate green innovation (GIN). We employ a dual fixed-effects model to isolate the specific contributions of digital integration to environmental outcomes. The empirical results establish a robust positive relationship, indicating that digitalization acts as a catalyst for green innovation. Mechanism analysis reveals that supply chain transparency functions as a critical partial mediator, channeling the benefits of digital data into sustainable practices. Furthermore, we identify distinct boundary conditions: the positive effect of SCD is significantly reinforced by internal green strategic actions and external government green subsidies. Heterogeneity tests further demonstrate that these effects are particularly significant in high-technology sectors and industries with high pollution intensity. By synthesizing the Resource-Based View with Stakeholder and Resource Dependence theories, this study clarifies the pathways through which digital capabilities drive sustainability, offering evidence-based recommendations for policymakers and business leaders navigating the dual transition of digitalization and decarbonization.