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The tone of buyer firms' annual reports and suppliers' green innovation: the spillover effects in the supply chain

The tone of buyer firms' annual reports and suppliers' green innovation: the spillover effects in the supply chain
The tone of buyer firms' annual reports and suppliers' green innovation: the spillover effects in the supply chain

Grounded in signaling theory, this study explores the effect of the tone of buyer firms' annual reports on suppliers' green innovation and investigates the factors influencing such spillover effects. We use a panel data regression method to analyze 748 paired buyer–supplier firm-year observations of Chinese listed manufacturing firms from 2010 to 2020. We demonstrate that the tone of buyers' annual reports promotes suppliers' green innovation, showing a spillover effect on the supply chain. Furthermore, the signal strength and effectiveness may be affected by the signal environment. Specifically, buyers' power over suppliers (supply chain environment) and suppliers' industry competition (industry environment) positively moderate the spillover effects of green innovation. This study enriches signaling theory and contributes to the growing literature on green innovation in supply chain management and also provides significant implications for managers.

annual reports tone, Chinese manufacturing firms, green innovation, signaling theory
0964-4733
Yang, Yang
93a8e2c1-72cd-40a5-bd38-0e0839490c06
Xiao, Zheng
7659ab34-e6f5-40ba-a143-edc969c0d053
Gong, Yu
86c8d37a-744d-46ab-8b43-18447ccaf39c
al Humdan, Eias
26d2c22c-4f1e-4f4b-89a6-69caa6716578
Yang, Yang
93a8e2c1-72cd-40a5-bd38-0e0839490c06
Xiao, Zheng
7659ab34-e6f5-40ba-a143-edc969c0d053
Gong, Yu
86c8d37a-744d-46ab-8b43-18447ccaf39c
al Humdan, Eias
26d2c22c-4f1e-4f4b-89a6-69caa6716578

Yang, Yang, Xiao, Zheng, Gong, Yu and al Humdan, Eias (2024) The tone of buyer firms' annual reports and suppliers' green innovation: the spillover effects in the supply chain. Business Strategy and the Environment. (doi:10.1002/bse.3773).

Record type: Article

Abstract

Grounded in signaling theory, this study explores the effect of the tone of buyer firms' annual reports on suppliers' green innovation and investigates the factors influencing such spillover effects. We use a panel data regression method to analyze 748 paired buyer–supplier firm-year observations of Chinese listed manufacturing firms from 2010 to 2020. We demonstrate that the tone of buyers' annual reports promotes suppliers' green innovation, showing a spillover effect on the supply chain. Furthermore, the signal strength and effectiveness may be affected by the signal environment. Specifically, buyers' power over suppliers (supply chain environment) and suppliers' industry competition (industry environment) positively moderate the spillover effects of green innovation. This study enriches signaling theory and contributes to the growing literature on green innovation in supply chain management and also provides significant implications for managers.

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Accepted/In Press date: 26 March 2024
Published date: 24 April 2024
Keywords: annual reports tone, Chinese manufacturing firms, green innovation, signaling theory

Identifiers

Local EPrints ID: 491790
URI: http://eprints.soton.ac.uk/id/eprint/491790
ISSN: 0964-4733
PURE UUID: 568de8e4-5f27-4b74-83ee-17e368d4be67
ORCID for Yu Gong: ORCID iD orcid.org/0000-0002-5411-376X

Catalogue record

Date deposited: 04 Jul 2024 16:36
Last modified: 12 Jul 2024 01:57

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Contributors

Author: Yang Yang
Author: Zheng Xiao
Author: Yu Gong ORCID iD
Author: Eias al Humdan

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