Research on the Impact of Downstream Firms’ Digital Transformation on Upstream Firms’ Green Innovation: A Supply-Chain Perspective

Xiaoyun Hu

Advances in Management and Applied Economics, 2026, vol. 16, issue 2, 6

Abstract: Abstract With the increasing popularity of digital technology in Chinese enterprises, how digital transformation affects the external green innovation of enterprises has become a question worth exploring. This study focuses on the upstream and downstream relationship to explore whether the digital transformation of downstream enterprises is related to the green innovation behavior of upstream suppliers under China's "dual carbon" policy. Based on the matching supply chain data of listed companies in China, the analysis shows that when the digital transformation of downstream partners is higher, the number of green patent applications of upstream enterprises is usually higher. The results of the study show that there is a direct causal relationship, but that this model is related to changes in the way of information exchange and coordination within the supply chain, which can reduce the uncertainty of green innovation activities. This relationship is more obvious in upstream enterprises in non-heavy pollution industries and enterprises with relatively strong technological foundations, which may be more flexible in innovative activities. In summary, the research results show that the digital transformation within the supply chain may affect the green innovation decision-making of the enterprise in a way that goes beyond the individual characteristics of the enterprise. JEL classification numbers: D21, M11, O14.

Keywords: Digital transformation; Green innovation; Spillover effects. (search for similar items in EconPapers)
Date: 2026
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