Industry 4.0 Technologies and Proactive Environmental Strategies: A Hybrid <scp>SEM</scp> ‐ <scp>fsQCA</scp> Analysis of Corporate Environmental Performance

ABSTRACT Coupling the ecological modernization theory with the natural resource‐based view of firms, we investigate the impact of Industry 4.0 (I4.0) technologies and proactive environmental strategies on firms' environmental performance. Additionally, we assess the mediating effects of circular economy practices and green innovation on the relationship between Industry 4.0 technologies, proactive environmental strategies, and environmental performance. Using a cross‐sectional design, we collected data from the managers and senior executives of 282 apparel manufacturing firms in Bangladesh. Our SEM findings showed that I4.0 technologies and proactive environmental strategies have a positive impact on environmental performance and that circular economy practices and green innovation mediate these relationships. Complementing these findings, our fsQCA results reveal multiple alternative configurations of I4.0 technologies, proactive environmental strategies, circular economy practices, and green innovation that are sufficient for achieving high environmental performance, highlighting causal asymmetry and equifinality. Our findings refine ecological modernization theory and the natural resource‐based view by showing that environmental performance is not the result of isolated drivers, but rather of specific combinations of technological, strategic, and innovation‐oriented capabilities.