The Impact of Supply Chain Network Structure on Green Innovation: The Mediating Role of Knowledge Absorption

Yubing Yu, Xinru Liu, Ye Wu and Yinghui Zhang

Emerging Markets Finance and Trade, 2025, vol. 61, issue 5, 1315-1341

Abstract: Green innovation is key to sustainable development. While the supply chain network affects corporate green innovation, the impact of the network’s structure remains unclear. On the basis of data concerning 737 Shanghai and Shenzhen A-share listed companies in China from 2007 to 2023, this study empirically investigates the impact of supply chain network structure (centrality, structural holes) on green innovation (exploratory, exploitative). The results reveal that centrality inhibits green innovation, whereas structural holes promote such innovation. These findings continue to be supported after robustness and endogeneity tests are performed. An analysis of the mediating mechanism reveals that centrality hinders green innovation by inhibiting knowledge absorption, whereas structural holes promote such innovation by facilitating knowledge absorption. Heterogeneity analysis reveals that high-profit enterprises, nonheavily polluting enterprises and enterprises that face low levels of financing constraints utilize supply chain networks to promote green innovation more effectively. The findings of this research provide both theoretical and empirical guidance for enterprises regarding the ability of supply chain network structure to promote green innovation.

Date: 2025
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DOI: 10.1080/1540496X.2024.2412052

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