Supply chain concentration and corporate green innovation: Evidence from China

With the rise of environmental awareness, stakeholders are increasingly insisting on a sustainable corporate strategy. This study examines the impact of supply chain concentration on green innovation in Chinese manufacturing firms listed on the A-share market from 2011 to 2022. The results show that...

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Main Authors: Dan Qiao, Junzhen Jiao, Norlin Khalid, Mohd Helmi Ali
Format: Article
Language:English
Published: Elsevier 2025-04-01
Series:Innovation and Green Development
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2949753124000791
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author Dan Qiao
Junzhen Jiao
Norlin Khalid
Mohd Helmi Ali
author_facet Dan Qiao
Junzhen Jiao
Norlin Khalid
Mohd Helmi Ali
author_sort Dan Qiao
collection DOAJ
description With the rise of environmental awareness, stakeholders are increasingly insisting on a sustainable corporate strategy. This study examines the impact of supply chain concentration on green innovation in Chinese manufacturing firms listed on the A-share market from 2011 to 2022. The results show that increased supplier concentration hinders green innovation, while increased customer concentration facilitates it. Supplier concentration has a stronger dampening effect for firms with a high degree of brownwashing, a high degree of monopoly, a low degree of supplier stability and state ownership. The compensating effect of customer concentration is stronger for firms with a high degree of brownwashing, a low degree of monopoly, a high degree of supplier stability and non-state ownership. Further findings suggest that increased supplier concentration increases business risk and organizational redundancy within firms, thereby hindering green innovation. Increased customer concentration promotes green innovation by reducing bargaining power and easing financial constraints. This study provides empirical evidence that enhanced supply chain management promotes corporate green innovation.
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spelling doaj-art-a343fa2cae904204aadb12bc951767c82025-08-20T02:54:39ZengElsevierInnovation and Green Development2949-75312025-04-014210020210.1016/j.igd.2024.100202Supply chain concentration and corporate green innovation: Evidence from ChinaDan Qiao0Junzhen Jiao1Norlin Khalid2Mohd Helmi Ali3UKM-Graduate School of Business, Universiti Kebangsaan Malaysia, Selangor, MalaysiaSchool of Economics, Nankai University, Tianjin, ChinaFaculty of Economics and Management, Universiti Kebangsaan Malaysia, Selangor, MalaysiaUKM-Graduate School of Business, Universiti Kebangsaan Malaysia, Selangor, Malaysia; Corresponding author.With the rise of environmental awareness, stakeholders are increasingly insisting on a sustainable corporate strategy. This study examines the impact of supply chain concentration on green innovation in Chinese manufacturing firms listed on the A-share market from 2011 to 2022. The results show that increased supplier concentration hinders green innovation, while increased customer concentration facilitates it. Supplier concentration has a stronger dampening effect for firms with a high degree of brownwashing, a high degree of monopoly, a low degree of supplier stability and state ownership. The compensating effect of customer concentration is stronger for firms with a high degree of brownwashing, a low degree of monopoly, a high degree of supplier stability and non-state ownership. Further findings suggest that increased supplier concentration increases business risk and organizational redundancy within firms, thereby hindering green innovation. Increased customer concentration promotes green innovation by reducing bargaining power and easing financial constraints. This study provides empirical evidence that enhanced supply chain management promotes corporate green innovation.http://www.sciencedirect.com/science/article/pii/S2949753124000791Supply chain concentrationSupplier concentrationCustomer concentrationGreen innovation qualityChinese listed companiesDual machine learning
spellingShingle Dan Qiao
Junzhen Jiao
Norlin Khalid
Mohd Helmi Ali
Supply chain concentration and corporate green innovation: Evidence from China
Innovation and Green Development
Supply chain concentration
Supplier concentration
Customer concentration
Green innovation quality
Chinese listed companies
Dual machine learning
title Supply chain concentration and corporate green innovation: Evidence from China
title_full Supply chain concentration and corporate green innovation: Evidence from China
title_fullStr Supply chain concentration and corporate green innovation: Evidence from China
title_full_unstemmed Supply chain concentration and corporate green innovation: Evidence from China
title_short Supply chain concentration and corporate green innovation: Evidence from China
title_sort supply chain concentration and corporate green innovation evidence from china
topic Supply chain concentration
Supplier concentration
Customer concentration
Green innovation quality
Chinese listed companies
Dual machine learning
url http://www.sciencedirect.com/science/article/pii/S2949753124000791
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AT junzhenjiao supplychainconcentrationandcorporategreeninnovationevidencefromchina
AT norlinkhalid supplychainconcentrationandcorporategreeninnovationevidencefromchina
AT mohdhelmiali supplychainconcentrationandcorporategreeninnovationevidencefromchina