This study aims to examine whether and how green supply chain management (GSCM), which integrates environmental concerns into supply chain activities, constrains corporate greenwashing behavior in China. Drawing on fraud triangle theory, it explores GSCM's mechanisms and spillover effects across supply chain partners.
Using 10,676 firm-year observations from 1,092 Chinese A-share listed firms during 2009–2023, this study uses fixed-effects regressions to test GSCM's effect on greenwashing behavior. Alternative measures and endogeneity tests ensure robustness.
GSCM significantly reduces greenwashing behavior. Mechanism tests show that this effect operates through green innovation, lower information asymmetry and executive green cognition. The effect is stronger in firms with higher supply chain digitalization, lower supply chain concentration and greater pollution intensity. GSCM also generates governance spillovers by reducing greenwashing behavior among upstream and downstream partners.
This study shows that GSCM mitigates greenwashing behavior and generates cross-organizational governance spillovers. It explains how environmental supply chain practices shape disclosure behavior and reveals GSCM's multi-level governance effects.
