Supply chain ESG spillovers and firm green innovation: evidence from China

This study examines how supplier and customer ESG performance drives firms’ green innovation through two asymmetric mechanisms: supplier-driven downward collaborative spillover rooted in Knowledge-Based View (KBV) and customer-driven upward coercive pressure stemming from Resource Dependence Theory (RDT). This reveals a strategic trade-off for firms between pursuing substantive green innovation (quality pursuit) and strategic green innovation (compliance response). External factors – green credit policy and supply chain relationship strength – amplify the effect, while internal factor – management myopia – attenuates it. Using Chinese A-share listed firms (2010-2023), we validate these propositions, advancing understanding of supply chain sustainability governance and heterogeneous green innovation drivers.