Lock-in and unlock: supplier concentration and firms’ corporate social irresponsibility—evidence from manufacturing firms in China

Purpose Corporate social irresponsibility (CSI) inflicts substantial harm on both shareholders and society. Although scholars have stressed external stakeholders’ inhibitory effects on CSI, few have examined the mechanisms through which stakeholders (particularly suppliers) induce CSI. Drawing on resource dependence theory, this study aims to investigate the “lock-in” effect of supplier concentration on firms’ CSI and explores the “unlocking” effects of green innovation and digital transformation on this relationship. Design/methodology/approach To test the above hypothesis, the authors conduct an empirical analysis on a large data set of listed manufacturing firms in China for the period of 2017–2022 and obtain strong evidence to support this view. Findings This study reveals that the power imbalance induced by high supplier concentration has a “lock-in” effect on firms, which pushes them to actively engage in CSI. Conversely, the results demonstrate that green innovation and digital transformation serve as critical “unlocking” factors that reverse such power imbalances, thereby attenuating the lock-in effect of supplier concentration on firms’ CSI. Originality/value This study investigates the mechanisms and boundary conditions through which supplier concentration influences firms’ CSI, delivering actionable insights for ethical decision-making and providing targeted guidance for firms and policymakers to advance equity and sustainability.