Can the digitization of supply chains promote the low-carbon transformation of enterprises? A case study of listed companies in China

As digital technology intertwines more profoundly with supply chain operations, clarifying how supply chain digitization facilitates the shift of enterprises toward low-carbon practices is instrumental in promoting quality-driven and sustainable development. From the lens of dynamic capability theory, this study undertakes an empirical analysis of the influence of supply chain digitization on low-carbon transformation of enterprises and the underlying mechanisms driving this process drawing on data from China's A-share enterprises over the period spanning 2012 to 2022, with the help of quasi-natural experiments of “Pilot Supply Chain Innovation and Application” using a difference in-differences model. The findings of the research are summarized as follows: Firstly, supply chain digitization can effectively promote low-carbon transformation of enterprises. Secondly, further analysis of the mechanism shows that supply chain digitization facilitates low-carbon transformation of enterprises by enhancing their absorptive, innovative and adaptive capacities. Finally, the heterogeneity analysis shows that the facilitating effect of supply chain digitization on low-carbon transformation is particularly pronounced in firms with larger scales, as well as those with lower levels of institutional attention and data element utilization. The research evaluate the economic impact of the supply chain digitalization policy, and through empirical data, enlighten the enterprise management to increase the investment in supply chain digitalization, strengthen the advancement of enterprise dynamic capabilities, and expedite the process of low-carbon transformation. • The economic impact of supply chain digitization policies is assessed from the perspective of dynamic capabilities theory. • Supply chain digitization can effectively promote low-carbon transformation of enterprises. • The absorptive, innovative and adaptive capacities of enterprises are important mechanisms of action. • This is particularly evident in larger enterprises with lower levels of institutional attention and data element utilization.