Digitization and Internal Governance: The Power to Drive the Impact of Supply Chain Efficiency on Corporate Sustainability

Aibo Li, Ke Ma () and Shanyue Jin ()
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Aibo Li: College of Business, Gachon University, Seongnam-si 13120, Republic of Korea
Ke Ma: Department of Business Administration, Semyung University, Jecheon-si 27136, Republic of Korea
Shanyue Jin: Department of Business Administration, Semyung University, Jecheon-si 27136, Republic of Korea

Sustainability, 2025, vol. 17, issue 12, 1-22

Abstract: In the context of intensifying global competition and mounting environmental pressures, understanding how firms can improve corporate sustainability through supply chain efficiency remains a pressing and underexplored issue. This study addresses this gap by investigating the relationship between supply chain efficiency and corporate sustainability, with a particular focus on the moderating roles of digitalization and internal governance. Using panel data of 8000 firm-year observations from Chinese A-share listed companies over the 2010–2022 period, we adopt a two-way fixed effects model to empirically examine how inventory turnover days and the warehousing and transportation cost ratio affect firms’ sustainable growth. Our findings indicate that improving supply chain efficiency—manifested in shorter inventory turnover cycles and lower logistics cost ratios—significantly enhances corporate sustainability. Furthermore, we find that higher levels of digitalization and stronger internal governance significantly strengthen this positive relationship. These findings extend the resource-based view and dynamic capability theory by revealing how supply chain efficiency, supported by digital and internal governance, contributes to long-term sustainability. This study offers theoretical insights and practical implications for managers and policymakers aiming to optimize supply chain strategies in support of sustainable development goals.

Keywords: inventory turnover days; warehousing and transportation cost ratio; sustainability; digitalization; internal governance; two-way fixed effects (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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