How does green supply chain management influence corporate total factor productivity——Evidence from a quasi-natural experiment

Ying Liu, William Mbanyele, Fengrong Wang, Linbo Zhang and Hongyun Huang

Economic Analysis and Policy, 2025, vol. 87, issue C, 57-82

Abstract: In efforts toward high-quality economic development, a rigorous examination of the role of green supply chain management (GSCM) in enhancing total factor productivity (TFP) is critical for balancing economic growth with environmental sustainability. This study investigates the impact of GSCM on corporate TFP, utilizing data from publicly listed Chinese manufacturing companies spanning 2012 to 2023. The results show that GSCM significantly boosts corporate TFP, through three potential channels: improving market position, upgrading human capital, and promoting technological progress. Furthermore, our findings highlight that GSCM's effect on TFP is more pronounced in highly competitive industries and companies with lower labor allocation efficiency. The positive impact is further amplified in environments with strong intellectual property protection, underscoring the role of government policy in facilitating these benefits. Additionally, GSCM promotes social benefits by facilitating corporate ESG engagements and has an industry herding effect as it encourages peer companies to pursue green transformation. This research provides fresh insights into the benefits of developing a modern green supply chain system that addresses the climate goals while also advancing high-quality economic development.

Keywords: Green supply chain management; Total factor productivity; High-quality economic development; Market position; Human capital; Technological progress (search for similar items in EconPapers)
JEL-codes: D24 J24 L14 L60 O32 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:87:y:2025:i:c:p:57-82

DOI: 10.1016/j.eap.2025.05.057

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