Digital transformation and corporate green supply chain efficiency: Evidence from China

Enhanced green supply chain effectiveness is imperative to foster superior growth in manufacturing companies. In the era of the digital economy, businesses are increasingly embracing digital technology to drive sustainability. Therefore, this study uses data from Chinese manufacturing firms listed on the A-share market between 2011 and 2020. It employs text analysis techniques to derive indicators for digital transformation, and applies the DEA method to assess the efficiency of green supply chains while investigating their relationship. The findings indicate that digital transformation has significantly enhanced corporate green supply chain efficiency. The underlying mechanism suggests that digital transformation promotes innovation in green technology, reduces transaction costs, and alleviates financing constraints, thereby improving green supply chains' overall efficiency. Moreover, the impact of digital transformation on enhancing efficiency in green supply chains is particularly pronounced among government-owned companies, large corporations, and those with lower per-capita production values. This study provides empirical evidence for firms seeking to achieve sustainable and green development and offers valuable policy insights for fostering superior economic growth.