From <scp>ESG</scp> Performance to the Rebalancing of Supply Chain Bargaining Power: The Roles of Green Innovation and Analyst Attention

ABSTRACT Amid the global transition toward low‐carbon development and increasingly stringent green trade regulations, firms' bargaining positions within supply chains are being reshaped. While ESG performance is widely regarded as a key indicator of corporate sustainability, its role in supply chain power remains insufficiently understood. Using panel data on Chinese A‐share listed firms from 2013 to 2022, this study examines whether and how ESG performance enhances firms' supply chain bargaining power. Two‐way fixed effects estimates show that stronger ESG performance is significantly associated with higher firms' bargaining positions, with results robust to alternative specifications. Mechanism analyses indicate that green innovation capacity and analyst attention serve as complementary channels, reflecting capability‐building and signaling effects. The impact is more pronounced for non‐key polluting and small‐scale enterprises. This study enriches the strategic ESG literature by revealing its governance implications for supply chains and offers actionable insights for firms seeking sustainable competitive advantages.