How does green manufacturing affect supply chain configuration?

Purpose This study aims to clarify the impact of green manufacturing (GM) on supply chain configuration (SCC) and its mechanism of action and to provide policy references for reducing the risk of supply chain disruptions in manufacturing and promoting the management of GM technologies in emerging market-oriented countries. Design/methodology/approach This paper utilizes panel data of China's A-share listed enterprises from 2011 to 2022, employing the creation policy of green factory demonstration construction projects as a natural experiment. It uses the multi-period difference-in-differences method to test the effect and mechanism of GM on SCC. Findings GM significantly reduces supply chain concentration and promotes supply chain diversification. The supply-demand matching effect of digital technology application, the demonstration effect of green standard information disclosure, and the driving effect of green technological innovation are the three mechanisms that promote the diversified changes in the SCC influenced by GM; for non-state-owned, heavily polluting industries and downstream enterprises of the industry, the supply chain diversification effect of GM is stronger. Originality/value Clarifying the three mechanisms of GM affecting the diversified configuration of the supply chain is a valuable supplement to research on GM, promoting internal organizational change within enterprises, and providing a new theoretical basis for reducing the risk of manufacturing supply chain disruption.