Digital Technology and Corporate Sustainable Development: Evidence on Supply Chain Spillovers

Digital technology (DIG) is an important means of coordinating activities across supply chains. Using matched data on Chinese listed firms and their disclosed supply chain partners from 2012 to 2023, this study examines the relationship between a focal firm's DIG and the sustainable development capability (SUS) of its partners. The results show that higher focal‐firm DIG is positively associated with partner SUS. This relationship is not statistically significant, however, when the focal firm's DIG is lower than that of its partner. The mechanism analysis provides evidence consistent with supply chain information transparency (TRAN) and collaborative risk management (RCM) as potential relational channels underlying the observed association. The association is more pronounced when partner firms are non‐heavily polluting firms, state‐owned enterprises, or located in high‐administrative‐level cities. By identifying the sustainability consequences, relative‐capability asymmetry, and potential relational governance mechanisms of digital technology spillovers, this study provides a more precise account of how digital capabilities may be transmitted through supply chain relationships.