Digital transformation: fresh insights to implement green supply chain management, eco-technological innovation, and collaborative capability in manufacturing sector of an emerging economy

The increasing significance of green supply chain management in developing countries’ manufacturing sector is primarily driven by the deteriorating environment, signified by decreasing raw material resources, a surplus of waste sites, and rising pollution levels. Green supply chain management can provide competitiveness while boosting a company’s environmental sustainability if implemented effectively. Therefore, it is necessary to determine the effect of green supply chain management practices on the firm performance of the manufacturing sector. This research aims to determine the moderating effect of collaborative capability and the mediating influence of eco-technological innovation and environmental strategy on the relationship between green supply chain management and firm performance. Five hundred fifty survey questionnaires are gathered from manufacturing firms of China. Utilizing structural equation modeling (SEM), the proposed hypotheses have been analyzed and investigated. The results show that green supply chain management indirectly affects the firm performance. Moreover, green supply chain management is positively related to environmental strategy and eco-technological innovation, which effectively enhance firm performance. The findings further indicate that environmental strategy and eco-technological innovation significantly mediate the association between green supply chain management and firm performance. Furthermore, collaborative capability significantly and positively moderates the relationship between green supply chain management and firm performance. As a result, the adoption of these factors influences firm performance positively and will assist the manufacturing sector in meeting diverse yet radically changing requirements and overcoming obstacles originating from a dynamic global business environment. Consequently, it is of the utmost importance that businesses must utilize green practices with relatively low environmental impacts. Companies can considerably maintain and improve their firm performance by reducing the environmental impact if they have effective collaborative capabilities, eco-technological innovation, and environmental strategies.