Two hands of green innovation: how digital social responsibility fuels circular economy practices and net-zero outcomes

Purpose This study investigates how digital social responsibility contributes to sustainability transformation by examining its effects on green innovation, circular economy practices, and net-zero-based green performance. Drawing on Stakeholder Theory and Dynamic Capabilities Theory, the study explores the mechanisms through which digitally enabled responsibility shapes innovation-based environmental outcomes. Design/methodology/approach A quantitative research design is employed, using survey data collected from technology-based firms in Vietnam. Structural equation modeling is applied to test the proposed relationships among digital social responsibility, exploitative and exploratory green innovation, circular economy practices, and net-zero-based green performance. Findings The results indicate that digital social responsibility is positively associated with exploratory green innovation but not with exploitative green innovation. Exploratory green innovation is positively associated with circular economy practices, and both green innovation and circular economy practices are positively associated with net-zero-based green performance. In addition, digital social responsibility shows significant positive associations with both circular economy practices and net-zero-based green performance. Originality/value This study advances digital sustainability literature by redefining digital social responsibility as a digital sustainability orchestration capability that links stakeholder engagement with dynamic capability formation. It further reveals how digital social responsibility-driven exploratory innovation translates into circular-economy practices and net-zero-based green performance in emerging-economy technology firms, offering new process-level insights into the digital-enabled sustainability transformation.