SCIENCE@home

Enhancing firms’ innovation persistence in the circular economy through government-supported green supply chain demonstrations: cost leadership or differentiation?

Y. Ju,Ye Cheng,Lujie Chen,Xinjie Xing

Published 2024 in International Journal of Logistics Research and Applications

ABSTRACT

ABSTRACT Government support is pivotal in guiding firms towards adopting green supply chain (GSC) practices aligned with the circular economy. Our study addressed this critical issue through a quasi-natural experiment of GSC demonstration in China. We conducted a difference-in-differences estimation to assess the variation in the persistent innovation capabilities between the treatment and control groups. The results indicate that the GSC demonstration, as an external policy change, stimulated the development of firms’ persistent innovation capabilities. These capabilities have positive effects on both innovation input and output dimensions. Additionally, we explored the interaction between firms’ competitive strategies and government support. Findings indicate that differentiation strategies have a stronger positive impact on innovation persistence, while cost leadership strategies weaken this link. These results emphasize the government's critical role in fostering GSC adoption, offering implications for effective government-business collaboration towards a circular economy and sustainable planning across social, environmental, and technological innovation factors.

PUBLICATION RECORD

CITATION MAP

EXTRACTION MAP

CLAIMS

  • No claims are published for this paper.

CONCEPTS

  • No concepts are published for this paper.

REFERENCES

Showing 1-83 of 83 references · Page 1 of 1

CITED BY

Showing 1-7 of 7 citing papers · Page 1 of 1