At the enterprise level, green innovation capability plays a crucial role in enhancing competitiveness within the supply chain. Enterprises leverage their green innovation resources to gain a stronger foothold in production competition. Drawing on data from listed enterprises in China, the findings support the notion that green innovation ability can enhance supply chain positioning, while also highlighting heterogeneity among different green innovation resources. Furthermore, we elucidate the mechanism through which value co-creation contributes to supply chain performance and how collaborative green innovation within the supply chain promotes its competitiveness. Additionally, our research reveals a lag effect associated with green innovation capability and demonstrates that the positive impact of green innovation capability is significantly regulated by asset-liability ratios. Consequently, this study suggests that enterprises should allocate more resources towards cultivating talent for driving both establishing partnerships within the supply chain and improving their position within the supply chain.