Reality or Intention: Diffusion of Sustainability Innovations in Green Supply Chain Applications

Abstract

Environmental sustainability innovations are essential because they have the potential to generate valuable change and address pressing environmental issues. However, not all innovations result in the development of new technologies, processes, and practices that improve environmental sustainability and efficiency. The diffusion of innovations theory emphasizes the role of perceived benefits and compatibility with existing practices in determining adoption rates. Furthermore, the theory has been applied to better understand the role of mediators in implementing sectoral innovations, as well as the factors that influence the acceptance of innovative practices inside businesses. Thus, this study focuses on the impact of innovative environmental sustainability practices on organizational performance via green supply, as well as the direct consequences of innovation on environmental carbon emissions in the textile industry. To measure these linkages, route analysis was performed on multisource data obtained from senior managers of 203 textile manufacturers using structural equation modeling. The findings suggest that innovations adapt to the perceived necessity of outcomes. In other words, whereas sustainability‐focused technologies do not directly reduce carbon emissions, green supply adapts them to improve organizational performance. This study significantly enhances literature by identifying critical gaps in sustainable supply chain innovation (SSCI) empirical evidence. Findings demonstrate the necessity of implementation fidelity for effective SSCI, providing practical strategies for firms to optimize sustainability outcomes.