Impact of net-zero policies on supply chain sustainability: mediating role of green technology adoption

Purpose This paper aims to examine the influence of net-zero policies on supply chain sustainability and agility by probing the mediating effect of green technology adoption. This study seeks to explore how regulatory and corporate net-zero commitments influence agile and sustainable supply chain outcomes, leveraging green technologies as a dynamic capability within the dynamic capabilities view (DCV) framework. Design/methodology/approach This research used a cross-sectional quantitative design, surveying 282 industry professionals working in high-carbon sectors, including manufacturing and logistics, from India via an online survey. Structural equation modeling was used to test seven hypotheses that relate to the direct and mediated impacts of net-zero policies on sustainability and agility by taking green technology adoption into account. Findings The results show that net-zero policies enhance supply chain sustainability (β = 0.49, p < 0.05) and agility (β = 0.48, p < 0.05), and green technology adoption partially mediates these effects (β = 0.270 for sustainability, β = 0.271 for agility, p < 0.05). The model explains substantial variance (R² = 0.67 for sustainability, 0.65 for agility), emphasizing the place of green technology in magnifying the impact of net-zero policies. Originality/value This paper contributes to understanding DCV by developing net-zero policies as environmental triggers and green technology adoption as dynamic capability, addressing gaps in supply chain research that tend to ignore agility or mediation effects. It contributes to advancing theory by shedding light on the duality of outcomes (sustainability and agility) and how companies can achieve this in a decarbonizing global economy.