The Role of Supply Chain Innovation Support Policies as a Determinant of the Interdependence Between Digitalization and Greening

This study examines the association between supply chain innovation support policies and the dynamic interdependence between firms’ digitalization and greening. Using a panel of 320 A-share listed firms from 11 provinces in the Yangtze River Basin over 2010–2024, we construct a dynamic measure of digital–green interdependence using the asymmetric dynamic conditional correlation (ADCC) framework. The resulting dynamic correlation measure is then examined in relation to supply chain innovation support policies and firm-level characteristics. The baseline results show that supply chain innovation support policies are positively associated with digital–green interdependence. Subsample analysis indicates that this association is stronger during the post-policy period. Quantile regression further reveals distributional heterogeneity, with larger policy coefficients at higher quantiles of digital–green interdependence. Markov-switching analysis identifies distinct regimes in the evolution of digital–green interdependence, with regime transitions occurring around the period of policy implementation. Threshold analysis further indicates a nonlinear relationship between policy support and digital–green interdependence. Robustness analysis based on the Fisher Z-transformed dynamic correlation yields results consistent with the baseline findings. Overall, the findings highlight the dynamic, heterogeneous, and nonlinear characteristics of the relationship between supply chain innovation support policies and firms’ digital–green interdependence.