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The Joint Effect of Buyer Quantitative and Qualitative Information Disclosure on Suppliers' Green Innovation

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Business Strategy and the Environment

Published online on

Abstract

["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nFirms' strategic decision‐making relies not only on their own information but also on that disclosed by supply chain partners. While research recognizes buyers' importance in green innovation, the impact of their information disclosure remains underdeveloped. Drawing on the extended resource‐based view, this study investigates the joint effect of buyers' quantitative and qualitative information disclosure on suppliers' green innovation, as well as the moderating role of suppliers' internal resources. Using a dyadic dataset of 1002 buyer–supplier pairs from China's manufacturing sector over 2008–2022, we find that the synergy between buyers' quantitative (operating profit) and qualitative (annual report tone) disclosures enhances suppliers' green innovation performance. This effect is further amplified in supplier firms with greater financial, technical, and human resources. Our study highlights the critical role of information disclosure along supply chains in advancing environmental sustainability, offering deeper insights into how downstream disclosure practices promote upstream green innovation.\n"]