Navigating a net‐zero economy future: Antecedents and consequences of net‐zero economy‐based green innovation

Khalid Mehmood, Pradeep Kautish, Sachin Kumar Mangla, Ahsan Ali and Yigit Kazancoglu

Business Strategy and the Environment, 2024, vol. 33, issue 5, 4175-4197

Abstract: The pursuit of net‐zero economy goals and government emphasis on sustainable performance has compelled numerous firms to focus on sustainable production through the adoption of net‐zero economy‐based green innovation. The digital transformation of manufacturing systems and supply chains, supported by the utilization of big data and the adoption of net‐zero economy‐oriented lean practices in the presence of net‐zero economy‐based green practices, can converge to enhance net‐zero economy‐based green innovation in manufacturing firms. This convergence leads to an improvement in green competitive advantage and net zero‐based green performance. To examine the aforementioned linkages using a framework based on the dynamic capabilities view paradigm, a time‐lagged design was employed to collect data from 594 manufacturing firms. The empirical findings indicate that big data analytics capabilities and net‐zero economy‐oriented lean practices of firms significantly influence net‐zero economy‐based green innovation. Green organizational identity strengthens the effect of net zero‐based green innovation on green competitive advantage and net zero‐based green performance.

Date: 2024
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