Are consumers willing to co-create value when focal firms' suppliers are proactive in green innovation? A chain liability and green halo effect

Purpose Based on the chain liability and green halo effects, this study uses the perspective of multi-tier supply chain management to examine the impact mechanism and boundary conditions of suppliers' green innovation types on consumers' willingness to participate in value co-creation with focal firms from the perspective of multi-tier supply chain management. Design/methodology/approach Using four situational experiments, 660 participants were recruited in Credamo, and SPSS 23.0 was used for data analysis. Experiments 1a and 1b verify the effect of suppliers' green innovation on consumers' willingness to participate in value co-creation with focal firms; experiment 2 examines the mediating effect of green sincerity perception; and experiment 3 explores the moderating effect of innovation proactiveness. Findings The results show that suppliers' green innovation efforts are more sincere when they are substantive (vs. symbolic), thereby generating higher value co-creation intentions. As a driving force, innovation proactiveness moderates the influence of suppliers' green innovation types on consumer's willingness to co-create value with focal firms. Originality/value This study enriches the literature on green supply chain management (GSCM) and consumers' willingness to co-create value. Furthermore, this study provides firms with practical guidance to improve marketing performance and green innovation practices through multilevel GSCM.