Abstract
Supply chain digitalization presents significant potential for aligning economic growth with environmental sustainability; however, the mechanisms through which it enhances carbon emission efficiency remain insufficiently explored in emerging economies. This study investigates the impact of digital transformation on corporate carbon performance in China, utilizing the Supply Chain Innovation and Application Pilot Initiative as a quasi-natural experiment. By analyzing data from Chinese A-share listed companies between 2013 and 2021 using a difference-in-differences approach, the study finds that pilot companies exhibited a substantial improvement in carbon emission efficiency. Two key mechanisms drive this effect: first, external collaboration, wherein digital platforms facilitate co-innovation with supply chain partners to develop low-carbon solutions, and second, internal capability restructuring, which optimizes management processes and promotes data-driven decision-making. The heterogeneity analysis identifies stronger effects in firms characterized by mature governance, non-state ownership, and involvement in competitive, low-pollution industries. These findings contribute to the advancement of green development theory by illustrating how digitalization functions as a dual catalyst, reshaping internal organizational capabilities and nurturing external innovation ecosystems. The study offers empirical insights from China's institutional context, providing guidance for achieving climate-industrial compatibility in emerging economies while emphasizing the need for context-specific validation across different institutional environments.