Revisiting the linkage between ESG performance and enterprise competitiveness: a dual perspective on supply chain stability and competitive strategy

Purpose This study aims to explore the impact of environmental, social, and governance (ESG) performance on enterprise competitiveness and integrates internal and external perspectives to analyze how supply chain stability and competitive strategy serve as mediating and moderating mechanisms. Design/methodology/approach Utilizing survey data from 2,973 companies listed on the Shanghai and Shenzhen Stock Exchanges, which encompass 23,360 observations from 2012 to 2022, this study constructs a unified analytical framework that incorporates supply chain stability and competitive strategy. Employing a dual fixed-effects model, the research empirically examines the direct effects of ESG performance on enterprise competitiveness, the mediating role of supply chain stability, and the moderating influence of competitive strategy among listed companies in China. Findings The study found that the enhancement of ESG performance significantly strengthens the competitiveness of enterprises. Furthermore, when enterprises improve their ESG performance, they can indirectly enhance their market competitiveness by increasing the stability of relationships with suppliers and customers, thereby improving the efficiency and responsiveness of the entire supply chain. In addition, by adopting different competitive strategies (cost leadership or differentiation) based on their resources and market positioning, enterprises can further amplify the positive impact of ESG performance on competitiveness. This paper also validates the main findings through two typical case studies. Originality/value The research results not only provide empirical evidence for the relationship between ESG performance and enterprise competitiveness but also reveal the significant role of supply chain stability and competitive strategy in the impact of ESG performance on corporate competitiveness from an integrated internal and external perspective, offering valuable insights for corporate management practices.