From Digitalization to Sustainability: Does Supply Chain Digitalization Enhance Corporate Green Transformation Performance?

Abstract

Supply chain digitalization (SCD) plays a critical role in accelerating corporate green innovation, reducing carbon emissions, and enhancing corporate green transformation performance (CGTP). Drawing on the practice-based view, this study examines how SCD influences CGTP and through which mechanisms, using data from Chinese A-share listed firms spanning 2013 to 2021. Applying a double machine learning approach, the results demonstrate that SCD significantly enhances CGTP. Further, heterogeneity tests reveal that this positive effect is more pronounced in firms exposed to higher technological uncertainty, led by executives with stronger green cognition, and operating in less competitive markets. Mechanism tests suggest that SCD enhances firms’ sensing, seizing, and reconfiguring capabilities, thereby facilitating CGTP. The findings enrich the understanding of digital transformation and sustainability linkages and provide practical insights for managers and policymakers seeking to leverage SCD-driven strategies to promote corporate green transformation and sustainable development.