Can Chain Leaders Stop Greenwashing Practices in Supply Chain Governance? An Empirical Investigation Into Business Strategies

Abstract

ABSTRACT In the context of the global green transformation of supply chains, corporate greenwashing has exhibited a networked diffusion trend, yet the role of chain leaders in this governance process remains unclear. Based on resource orchestration theory (ROT), this study uses data from Chinese A‐share listed firms and their supply chain partners spanning 2011–2022 as a sample to explore the mechanisms by which the dominant position of chain leaders suppresses greenwashing within supply chains. It also examines the contextual effects of digital transformation and government supervision. The findings reveal that: (1) chain leaders utilize dual pathways, namely, coordination (reducing supply–demand coordination costs and reconstructing business credit networks) and guidance (cultivating green cognition and facilitating green technological spillovers) to suppress greenwashing; (2) digital transformation unexpectedly exacerbates greenwashing, whereas government supervision strengthens governance efficacy; (3) greenwashing among geographically proximate partners and customer partners is more significantly influenced by chain leaders' governance. This study challenges the traditional supply chain efficiency paradigm by introducing a network‐embedded explanation for greenwashing behavior.