Unlocking latent value: The Twin-transition of innovation and technology in activating sustainable supply chains for environmental performance

This study addresses a critical gap in sustainable operations by examining the conditions under which sustainable supply chain (SSC) practices translate into environmental performance (EFP) in emerging economies. Grounded in a novel dual-moderation framework that integrates the Resource-Based View (RBV) and Innovation Diffusion Theory (IDT), this study proposes that innovation capability (IC) and technology adoption (TA) act as essential organizational catalysts. The research hypotheses are tested using Partial Least Squares Structural Equation Modeling (PLS-SEM) on survey data from 420 managers in ISO-14001-certified Pakistani manufacturing firms. Results confirm that sustainable sourcing (SS), green logistics (GL), and waste reduction management (WRM) significantly enhance EFP. Crucially, these relationships are powerfully amplified by high levels of IC (β = 0.156, p < 0.05) and advanced TA (β = 0.198, p < 0.01), with their inclusion substantially increasing the model's explanatory power (Δ R2 = 0.224). The findings reveal that green resources are often "latent" without these catalysts. The primary contribution is a strategic 'Twin-Transition' blueprint, demonstrating that emerging economy manufacturers must simultaneously cultivate an internal innovation culture and digital infrastructure to unlock the full environmental value of their SSCs.