The Role of Institutional Pressures in Technology Adoption for Low‐Carbon Manufacturing

ABSTRACT Existing research highlights that the adoption of low‐carbon technologies in manufacturing operations is shaped by the external environment. However, limited understanding exists regarding how technology‐related uncertainty interacts with institutional pressures to influence firms' adoption strategies. Drawing on institutional theory, this study develops a conceptual framework to examine how technology‐related factors and institutional pressures affect the adoption of low‐carbon technologies. The empirical analysis focuses on large‐scale industrial heat pumps in energy‐intensive manufacturing sectors, specifically food, beverages and paper, in Finland and Sweden. Using survey data, the study applies partial least squares structural equation modelling (PLS‐SEM) to test a structural model linking technology uncertainty, institutional pressures, perceived relative advantage and intention to adopt. The results show that technology uncertainty significantly amplifies institutional pressures, which, in turn, enhance firms' perceptions of relative advantage. These perceptions strongly predict adoption intention, revealing how institutional signals and perceived benefits drive sustainability transitions in energy‐intensive manufacturing.