How Green Supplier Integration Drives Green Innovation: Evidence from Chinese Manufacturing Firms under the Knowledge-Based View

Abstract

Drawing on survey data from 208 Chinese manufacturing firms, this study demonstrates that green supplier integration (GSI) significantly enhances firms’ knowledge absorptive capacity (KAC), which in turn promotes both green product and process innovation. KAC partially mediates the relationship between GSI and green innovation (GI), indicating that supplier collaboration fosters the acquisition, assimilation, and transformation of external environmental knowledge into innovative outcomes. These findings, grounded in the knowledge-based view, reveal the synergistic effects of GSI and KAC in driving sustainable innovation performance and provide new insights into how supply chain collaboration and knowledge integration strengthen firms’ green competitiveness. Purpose: This study investigates the impact of green supplier integration on green innovation in Chinese manufacturing firms, focusing on the mediating role of knowledge absorption capability. It aims to elucidate the mechanisms through which supplier collaboration promotes both green product and green process innovation. Design/methodology/approach: Drawing on the knowledge-based view (KBV), this study examines the direct effects of green supplier integration (GSI) on green innovation (encompassing green product innovation and green process innovation) as well as the indirect effects of GSI on green innovation through knowledge absorptive capacity (KAC) as a mediator. Adopting a quantitative research approach, we collected survey data from middle-to-senior managers of Chinese manufacturing enterprises with green supply chain practices between March and June 2024, ultimately obtaining 208 valid questionnaires. Structural equation modeling via SmartPLS 4.0 was employed to analyze the collected data and test the proposed relationships in the theoretical framework. Findings: GSI significantly enhances firms’ absorptive capacity, which partially mediates its positive effects on green product and process innovation. The results highlight that effective knowledge acquisition and transformation from suppliers are key drivers of sustainable innovation and competitive advantage. Research limitations/implications: This study is limited by its focus on supplier integration, potential contextual moderators (e.g., top management support, inter-organizational trust), and reliance on single-informant survey data. Future research could adopt multi-source or longitudinal designs and consider customer integration to provide a more comprehensive understanding of factors shaping KAC and GI. Practical implications: Managers should strengthen green supplier integration through green procurement, systematic supplier management, and active supplier collaboration, while developing internal mechanisms to absorb and apply external knowledge effectively. These practices can enhance green innovation performance and support sustainable supply chain development. Originality/value: Drawing on the knowledge-based view, this study offers three key original contributions. Methodologically, it uses advanced PLS-SEM standards (HTMT, bootstrapping, PLSpredict) to analyze 208 Chinese manufacturers’ data, addressing prior technical gaps. Theoretically, it unpacks the GSI-GI “black box” by identifying knowledge absorptive capacity as a mediator, extending KBV to sustainable supply chains. Contextually, it distinguishes green product/process innovation to explore GSI’s heterogeneous effects, reflecting Chinese manufacturers’ practical green transformation needs, enriching academia and guiding corporate sustainability under “dual carbon” goals.