How can low- and zero-carbon technology adoption impact sustainable firm performance?

Purpose This paper investigates the relationships between low- and zero-carbon technology (LCT) adoption and sustainable firm performance in the manufacturing supply chain. Specifically, it examines the roles of sustainable manufacturing practices (SMPs), supplier concentration and customer concentration. Design/methodology/approach We develop and empirically test 5 hypotheses about the above relationships with financial and supply chain data from 2,852 Chinese listed manufacturers between 2009 and 2021. Findings The results affirm the positive impact of LCT adoption on firms' sustainable outcomes. SMPs act as a critical mediator, translating the positive influence of LCT adoption into improved sustainable performance. However, this relationship is negatively moderated by customer concentration. Originality/value This paper is the first to provide empirical evidence of how adopting LCTs affects a firm's sustainability performance, with SMPs and customer concentration playing important roles. The findings provide new insights and implications for manufacturers and policymakers regarding the strategic adoption of LCTs in the manufacturing supply chain.