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Open Access | Accepted manuscript on May 26, 2026

How has the IT change affected corporate environmental and social violations in transition economies? Evidence from the supply chain perspective

Zhu Rongcheng
Liu Yanbin
Abstract

Corporate entities are the primary drivers in advancing green economic transformation and sustainable development, while information technology can significantly impact corporate environmental and social violations through the supply chain. Therefore, we focus on the impact of information technology change in the supply chain (SITC) on corporate environmental and social violations and explore the mechanism of its effect. Through empirical analysis of A-share listed companies in China from 2010 to 2024, we developed a measurement for SITC utilizing computer-assisted textual analysis. The results show that SITC inhibits corporate environmental and social violations through dual mechanisms: 1) enhancing external monitoring capabilities and 2) facilitating knowledge spillover effects. It also significantly affects violations of corporations with high supply chain concentration, lack of government regulation, and large scale. This research establishes evidence regarding the pathways through which SITC influences corporate environmental and social violations, advancing the understanding of how technology change shapes environmental and social accountability challenges.

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Keywords
IT change, Corporate violation, supply chain, Information asymmetry, Textual analysis