Dual Mechanisms of Digital Transformation in Sustaining Green Innovation: A Supply Chain Perspective on Capability–Motivation Dynamics

Ziyang Shi and Danxue Fan ()
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Ziyang Shi: School of Statistics and Data Science, Lanzhou University of Finance and Economics, Lanzhou 730030, China
Danxue Fan: School of Statistics and Data Science, Lanzhou University of Finance and Economics, Lanzhou 730030, China

Sustainability, 2025, vol. 17, issue 20, 1-34

Abstract: In the context of global industrial chain decarbonization, the perpetuation of corporate green innovation has emerged as a linchpin for sustaining a competitive advantage in the pursuit of environmental sustainability. Employing a panel data framework, this investigation analyzes A-share listed firms in China from 2011 to 2023. In terms of supply chain perspectives, this study utilizes fixed effects models, mediation analysis, and moderation analysis to empirically examine how downstream enterprises’ digital transformation affects the sustainability of upstream enterprises’ green innovation, while deconstructing the “capability–motivation” dual pathway underlying such sustainability. The key findings are as follows: (1) downstream digital transformation significantly strengthens upstream green innovation persistence through both capability reinforcement and motivation amplification, with a notably stronger impact on the latter; (2) mechanism tests show that capability improvement primarily arises from knowledge spillovers and enhanced supply–demand coordination efficiency, while motivation enhancement stems from intensified market competition and greater responsiveness to tax incentives; and (3) supply chain structural characteristics exert critical moderating effects. This research elucidates the operational logic and boundary conditions of supply chain digital coordination in driving green innovation persistence, contributing to theoretical frameworks while offering actionable insights for policymaking and corporate strategic optimization in sustainable supply chain management.

Keywords: digital transformation; green innovation sustainability; supply chains; Chinese companies (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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