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Driving supply chain decarbonization: How net-zero policies foster environmental impact and dynamic capabilities
Rohit Kumar Singh1, Cyril R H Foropon2
1Operations & Supply Chain, Operations & Quantitative Technique Department, International Management Institute, Kolkata, India.
None:
This study investigates the impact of net-zero policies on supply chain decarbonization, emphasizing their effects on environmental outcomes and dynamic capability development, with carbon accounting systems as a mediator. The study aims to clarify how regulatory and corporate net-zero commitments enhance sustainable and adaptive supply chains, developed using the dynamic capability view (DCV). A survey was conducted with 307 key informants from carbon-intensive industries in India. The cross-sectional data gathered using the pretested survey instrument were analyzed using the commercial structural equation modelling (SEM) software. The results indicate that net-zero policies significantly improve environmental outcomes (β = 0.355, p < 0.001) and dynamic capability development (β = 0.239, p < 0.001), with carbon accounting systems partially mediating these relationships (β = 0.192 for ENI; β = 0.240 for DCD, p < 0.001). This study contributes to the dynamic capabilities theory by highlighting net-zero policies as environmental catalysts and offers insights and a strategic roadmap for firms transitioning to net-zero.
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