How metaverse-enabled digital transformation drives sustainable supply chain innovation: evidence from Pakistan’s textile industry

Despite the growing urgency of sustainability, many firms continue to rely on static systems and incremental improvements that fall short of enabling deep transformation. Drawing on the dynamic capabilities theory (DCT) and the technology–organization–environment (TOE) framework, this research proposes a conceptual model in which the metaverse-enabled digital twin integration (DTI) and virtual supply chain visibility (VSCV) influence sustainable supply chain innovation (SSCI) through the mediating roles of green process reconfiguration (GPR) and eco-intelligent decision support (EIDS), with digital maturity (DM) as a moderating factor. Data were collected from 430 supply chain professionals in the Pakistan’s textile industry using a structured survey and analyzed using structural equation modeling with WarpPLS. Results show that DTI and VSCV significantly contribute to SSCI via GPR and EIDS, and that the impact of these internal mechanisms is amplified by higher levels of DM. Firm size and export orientation were included as control variables to account for structural and contextual differences across firms. This research enriches the literature by identifying how immersive and interactive digital tools, when embedded within adaptive organizational capabilities, can drive meaningful sustainability transformation. It offers practical insights for firms and policymakers seeking to align digitalization with environmental goals.