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Purpose

Companies are actively pursuing digital transformation to achieve sustainable development; however, how digital transformation can help manufacturing firms improve carbon performance remains unclear. Based on an integrated perspective of dynamic capability theory and practice-based view, this study examines the relationship between digital transformation and carbon performance by exploring the mediating effect of supply chain intelligence integration and the moderating role of business model innovation.

Design/methodology/approach

Using data collected from 297 manufacturing firms in China, this study employs hierarchical regression analysis to test the research hypotheses.

Findings

The findings demonstrated a significant positive association between digital transformation and carbon performance, and this relationship is mediated by all three dimensions of supply chain intelligence integration. Furthermore, business model innovation negatively moderates the relationships between digital transformation and both supplier intelligence integration and competitor intelligence integration.

Originality/value

The study provides empirical evidence that manufacturing firms can achieve greater benefits from digital transformation by aligning it with business model innovation and systematically promoting supply chain intelligence integration.

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