ABSTRACT The low‐carbon transformation of the supply chain is an essential requirement for China to achieve its dual carbon goals and a key measure for building a modern industrial system. Leading firms with ecological dominance (ED) serve as enablers, pioneers, and organizers in this transformation. Drawing on dynamic capability theory, institutional theory, and ecosystem leadership theory, this paper develops an exploratory indicator system for the ED of leading firms across three dimensions: green innovation traction, green development leadership, and green governance initiatives. It examines the effects and underlying mechanisms through which the ED of leading firms drives the supply chain's transition toward low carbon. The findings show that (1) the ED of leading firms promotes the low‐carbon transformation of the supply chain. In particular, green innovation traction and green development leadership exert stronger effects, whereas green governance initiatives demonstrate a lagging influence. (2) Mechanism tests indicate that this transformation is primarily driven by spillovers of green technological innovation and green development levels. (3) Heterogeneity tests show that the leadership of leading firms significantly affects the low‐carbon transformation of non‐state‐owned, downstream, and same‐industry firms within the supply chain. Therefore, leading firms drive low‐carbon transformation across industrial chains through the synergistic effects of green innovation traction, green development leadership, and green governance initiatives, forming a mutually reinforcing technology–strategy–institution closed‐loop system. This study provides a reference for leading firms to strengthen ED and advance sustainable supply chain development, enriching management science and supporting its evolution from firm‐centric perspectives toward ecosystem views.
qu et al. (Sat,) studied this question.