Should Mining Enterprise Adopt Digital Transformation for Environmental Performance? A Supply Chain Power Structure Perspective

Abstract

This research explores how digital transformation (DT) affects environmental performance (EP) in mining companies, considering supply chain power dynamics involving suppliers and retailers. We construct theoretical models to depict the game process of the DT strategy of a mining company under different supply chain power structures. We then validate our theoretical model through a sample of 1155 A-shared listed mining companies with complete financial data in China. Regression models with fixed effects are applied to estimate the potential parameters. The empirical findings are consistent with theoretical results, showing that DT improves the EP for mining companies. The EP is weaker when DT is treated at higher supplier and retailer concentrations. This study can guide policy frameworks at COP28, promoting sustainable mining practices aligned with global climate goals.