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Radical or Incremental? The Effects of Green Innovation on the Supply Base Stability of Logistics Service Providers

2025/01/01 by Chang Wu, Jinan Shao, Kee-Hung Lai +2 · 1 citation
Business, Management and Accounting · Engineering · #Sustainable Supply Chain Management #Urban and Freight Transport Logistics

paper · doi:10.1109/tem.2025.3558756

crossref issued 2025/01/01 · crossref published 2025/01/01 · crossref published-print 2025/01/01 · openalex publication_date 2025/01/01 · crossref created 2025/04/08 · crossref deposited 2025/04/23 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/02 · crossref indexed 2026/08/01

Abstract

Logistics service providers (LSPs) are increasingly adopting green innovation to mitigate their environmental impacts. However, little is known about how such innovation influences their supply base stability (SBS), even though supplier inputs are essential for LSPs to meet the requirements of their stakeholders. To narrow this gap, this study draws on recombinant search theory to examine whether LSPs' incremental green innovation (IGI) and radical green innovation (RGI) exert differential effects on their SBS. By analyzing data from 88 publicly listed Chinese LSPs over the period 2011–2019, this study reveals a positive relationship between IGI and SBS but a negative relationship between RGI and SBS. Furthermore, our findings indicate that top management teams play a critical role in shaping these relationships. In particular, executive environmental attention weakens the positive IGI–SBS association while executive environmental expertise attenuates the negative RGI–SBS association. Our study extends the operations and technology management literature by uncovering the differential effects of IGI and RGI on LSPs' SBS and the boundary conditions that alter these effects. LSPs are advised to strategically navigate various types of green innovation to better maintain the stability of their supply bases.

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