Driving toward business sustainability: Empirical evidence from low-carbon practices

Abstract

This study investigated the effect of low-carbon practices on business sustainability, delved into the underlying mechanisms that exist between them, and designed the recipes tailored toward promoting business sustainability in both high and low-level. Based on a sample of 681 firms with 1376 observations from 2020 to 2022 that disclose the low-carbon practices in MD&A, we employed a quasi-replication method comprising regression analysis and fuzzy-set qualitative comparative analysis (fsQCA) to test hypotheses and explore pathways. Regression analysis results demonstrate that low-carbon practices significantly promote business sustainability and underscore the mediation effect of technological innovation capacity, alongside the moderating influence of R&D funding and government incentives and penalties. Additionally, fsQCA results reveal a pronounced synergistic impact emanating from multiple antecedent conditions, rather than a singular factor, in driving both high- and low-level business sustainability. The findings on sustainable business operations management are invaluable for decision-makers seeking to establish a low-carbon strategic initiative that adeptly addresses the diverse opportunities and complexities posed by global environmental concerns.