Green Innovation and Low‐Carbon Operations : The Role of Net‐Zero Capabilities in Transition Towards Carbon Neutrality in Circular Supply Chains

Abstract

Reducing carbon emissions and achieving net-zero goals remain critical global supply chain priorities, and the transition to a circular supply chain is pivotal in reducing carbon emissions. This study empirically examines how low-carbon operations management practices impact circular supply chain management. We collected and analysed data from 183 respondents. Results from partial least squares structural equation modelling show that net-zero capabilities have a direct positive moderating effect on green product innovation and enhance end-of-product-life management and that net-zero capability can play a major role as a boundary-spanning function in accelerating green product innovation while balancing carbon emissions in the circular supply chain. Net-zero capability refers to a firm's ability to reduce its greenhouse gas emissions and align its operations with decarbonisation efforts. For practitioners, our results highlight that firms should focus on more than just green innovation; they should strengthen their net-zero capabilities to support sustainable supply chain practices.