Supply chain digitization and continuous green innovation: Evidence from China

This study explores the causality between supply chain digitization and continuous green innovation (CGI). It constructs a dataset covering green patent applications, financial data of listed companies, and the economic profiles of cities from 2013 to 2022. The research leverages the supply chain pilot policy introduced by the Chinese government in 2018 as a quasi-natural experiment, employing various instruments for analysis such as difference-in-differences model and event study method. The empirical findings indicate that (1) supply chain digitization significantly boosts CGI; (2) this impact is more pronounced in high-tech companies, those with highly concentrated supply chains, and those with superior governance standards; (3) financing constraints, risk- taking capability, and investor attention are the key intrinsic mechanisms through which supply chain digitization influences CGI; (4) the positive effect of supply chain digitization on CGI enhances company performance and promotes spatial cooperation. These results offer valuable insights for improving supply chain management and achieving sustainable development.