From resources to sustainability: a practice-based view of net zero economy implementation in small and medium business-to-business firms

Abstract

PurposeThis study examines the effect of resources (e.g. tangible resources, human skills and intangible resources) that are utilized as a bundle of standard practices on sustainable net zero economy implementation and their further impact on financial, environmental and social performance among small- and medium-level enterprises in business markets. The moderating effect of big data analytical intelligence is also examined.Design/methodology/approachThe samples were selected from the paper and chemical manufacturing industries of South Africa. The data analysis was performed using variance-based structural equation modeling.FindingsThe results show that tangible resources, human skills and intangible resources positively influence sustainable net zero economy adoption. However, intangible resources have a more substantial influence on sustainable net zero economy implementation. This shows that adopting a sustainable net zero economy depends more on a bundle of common practices, including sustainability culture, employee training and knowledge management, and managers must create the necessary action plans accordingly. In addition, sustainable net zero economy adoption positively influences financial performance, environmental performance and social performance. However, sustainable net zero economy adoption has a more substantial influence on social performance. Therefore, implementing a net zero economy will be more advantageous to society and to local communities.Practical implicationsTo achieve a sustainable net zero economy, managers should recognize the significance of resource management. While managing tangible resources and human skills is crucial, intangible resources, such as culture and organizational learning, require more attention. Additionally, the ability of small- and medium-sized enterprises to explore, store, share and apply knowledge is crucial to achieving net zero. Therefore, managers should make use of Industry 4.0-based digital technologies for effective knowledge management. Moreover, net zero economy adoption can significantly enhance societal performance. Hence, while making budgeting decisions, managers must consider the potential of the firm's resources to improve social performance.Originality/valueThis study is the first to investigate the impact of human skills and tangible and intangible resources on the adoption of a sustainable net zero economy by companies, using empirical evidence. The research expands on the concept of the practice-based view (PBV) in the implementation of sustainable net zero economies by small- and medium-sized business-to-business enterprises.

Impact of information system flexibility and dynamic capabilities in building net zero supply chains

“…DAC positively influence SSCF. JEIM 37,3 3.5 Resource flexibility (RF) and sustainable supply chain flexibility (SSCF) Sustainable sourcing flexibility is made viable when organizations can seamlessly shift between diverse suppliers, ensuring alignment with sustainability criteria and reducing dependency on non-sustainable sources (Bag and Rahman, 2023;Bag, 2023;Edwin Cheng et al, 2022). With recycling and reuse flexibility, a malleable resource base efficiently incorporates recycled materials and redirects waste streams, thus promoting a more circular approach (Bai et al, 2020;Sharma et al, 2023).…”

Artificial intelligence (AI)‐driven strategic business model innovations in small‐ and medium‐sized enterprises. Insights on technological and strategic enablers for carbon neutral businesses

“…Carbon emissions may be precisely measured and tracked throughout an organization's activities via AIdriven technologies. AI is also useful in helping to choose and execute carbon offsetting plans, such funding renewable energy projects or encouraging reforestation efforts (Bag, 2023;Millot & Maïzi, 2021;A. Zhang, Tay, et al, 2023).…”

“…Through proactive pursuit and integration of sustainable technology as a fundamental aspect of their strategic framework, entities may stimulate creativity, maximize energy efficiency, and mitigate their carbon footprint (Gurkov, 2005;Nadler & Tushman, 1999). Organizations can effectively work towards carbon neutrality by aligning strategy with sustainability, integrating sustainability into the supply chain, fostering technology adoption and innovation, optimizing organizational structure and governance, integrating sustainable practices into business processes, and establishing performance measurement and reporting systems (Bag, 2023;G. Li, Xue, & Qin, 2022).…”

“…The purpose of this study is to investigate how artificial intelligence (AI)-driven business model innovation (AIDBMI) might improve the strategic and technology foundations for companies that are carbon neutral (CNB). Organizations may take advantage of new possibilities, overcome obstacles, and streamline processes by utilizing AI to help them reach carbon neutrality targets (Ahmad et al, 2022;Bag, 2023;Jia, 2023). This study aims to give important insights into the use of this new paradigm and illuminate its many dimensions.…”

Navigating circular economy: Unleashing the potential of political and supply chain analytics skills among top supply chain executives for environmental orientation, regenerative supply chain practices, and supply chain viability

“…Moreover, it is crucial to note that even if GHG emissions are immediately reduced, some effects of global warming will persist for decades or centuries due to the lengthy nature of climate processes (Bag et al, 2023). Nevertheless, taking action now to limit global warming and reduce GHG emissions could help to minimize the negative effects as well as safeguard future generations from even more severe consequences (Bag, 2023).…”