Global supply chain integration, financing restrictions, and green innovation: Analysis based on 222,773 samples

Abstract

Purpose

The purpose of this paper is to analyze the influence that the financial restrictions of Chinese enterprises exert on their green innovation abilities with their increased integration into the global supply chain (GSC).

Design/methodology/approach

This study uses customs, import, and export data for 222,773 Chinese enterprises and examined them by ownership type, capital density, and degree of pollution.

Findings

The results show that the deeper the integration into the GSC, the looser the financing environment would be, and the stronger the green innovation abilities of the enterprises.

Practical implications

The findings suggest that China should step up privatization of state-owned enterprises, increase government subsidies to private enterprises, and loosen their financing restrictions to address the recent economic decline in the country and ensure smooth and fast economic growth.

Originality/value

This paper is one of the first of its kind to develop and empirically analyze the relationship between the GSC and the financing restrictions and their determinant factors in China. It uniquely contributes to help the authors find approaches to constructing China’s green innovation and has far-reaching implications for other developing countries.

Citation

Song, M., Chen, M. and Wang, S. (2018), "Global supply chain integration, financing restrictions, and green innovation: Analysis based on 222,773 samples", The International Journal of Logistics Management, Vol. 29 No. 2, pp. 539-554. https://doi.org/10.1108/IJLM-03-2017-0072