The impact of environmental dynamism on low‐carbon practices and digital supply chain networks to enhance sustainable performance: An empirical analysis

Abstract Digital supply chains have revolutionised manufacturing firms by helping them address the challenges of a dynamic environment. Firms implement low‐carbon practices to achieve environmental sustainability. This paper explores whether digital supply chain networks can influence the sustainable performance of manufacturing firms and the mediating effect of low‐carbon practices in the contingency factor of environmental dynamism (ED). The relationship is examined in terms of information processing theory and stakeholder theory and from the perspective of a resource‐based view (RBV). The proposed framework is tested using structural equation modelling. The results show that low‐carbon practices have a partial mediation effect on digital supply chains and the sustainable performance of manufacturing firms. Furthermore, ED moderates the relationship of low‐carbon practices and digital supply chain networks. The study can support managers as they design strategies to move towards a low‐carbon economy, enhancing the firm's sustainable performance in accordance with ED. The current study strongly contributes to the literature on business strategy and the environment, as it has both theoretical and practical implications.