Can chain leaders stop greenwashing practices in supply chain governance? An empirical investigation into business strategies

Zhe Sun, Lei Liu, Liang Zhao*, Diana Korayim, Rsha Alghafes

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)
31 Downloads (Pure)

Abstract

In the context of the global green transformation of supply chains, corporate greenwashing has exhibited a networked diffusion trend, yet the role of chain leaders in this governance process remains unclear. Based on resource orchestration theory (ROT), this study uses data from Chinese A-share listed firms and their supply chain partners spanning 2011–2022 as a sample to explore the mechanisms by which the dominant position of chain leaders suppresses greenwashing within supply chains. It also examines the contextual effects of digital transformation and government supervision. The findings reveal that: (1) chain leaders utilize dual pathways, namely, coordination (reducing supply–demand coordination costs and reconstructing business credit networks) and guidance (cultivating green cognition and facilitating green technological spillovers) to suppress greenwashing; (2) digital transformation unexpectedly exacerbates greenwashing, whereas government supervision strengthens governance efficacy; (3) greenwashing among geographically proximate partners and customer partners is more significantly influenced by chain leaders' governance. This study challenges the traditional supply chain efficiency paradigm by introducing a network-embedded explanation for greenwashing behavior.
Original languageEnglish
Pages (from-to)5795-5817
Number of pages23
JournalCorporate Social Responsibility and Environmental Management
Volume32
Issue number5
Early online date4 Jun 2025
DOIs
Publication statusPublished - 1 Sept 2025

Funding

Princess Nourah bint Abdulrahman University Researchers supporting project number (PNURSP2025R541), Princess Nourah bint Abdulrahman University, Riyadh, Saudi Arabia.

Keywords

  • chain leader
  • digital transformation
  • government supervision
  • greenwashing
  • resource orchestration theory
  • supply chain governance

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