The effect of supplier digitalization on customer firm emissions.

ABSTRACT: The application of digital technology is a crucial means to achieve low-carbon development goals, with supplier firms' digital transformation driving supply chain optimization as a key pathway to this goal. This study systematically examines the forward spillover effects of supplier firms' digital transformation. Using panel data from A-share listed companies in China over the period 2007-2022, we focus on vertical supply chain linkages. The results indicate that supplier firms' digital transformation significantly reduces customer firms' environmental pollution emissions, a conclusion that remains robust across various tests. Moreover, we find that this effect is asymmetric: it is significantly stronger when suppliers' digitalization levels exceed those of their customers. Heterogeneity a

SUBMITTER: Li J 

PROVIDER: S-EPMC12635142 | biostudies-literature | 2025 Nov

REPOSITORIES: biostudies-literature