Decarbonisation and firm financial performance: The roles of supply chain transparency and resilience

Wang, M. ORCID: https://orcid.org/0000-0003-3823-6433, Liu, Y. ORCID: https://orcid.org/0000-0002-3012-0973, Geng, D., Dora, M. ORCID: https://orcid.org/0000-0003-4730-8144 and Hill, A. ORCID: https://orcid.org/0000-0002-6152-4786 (2026) Decarbonisation and firm financial performance: The roles of supply chain transparency and resilience. International Journal of Production Economics, 296. 109988. ISSN 09255273 doi: 10.1016/j.ijpe.2026.109988

Abstract/Summary

The main purpose of this study is to examine how decarbonisation affects a firm's financial performance through supply chain practices, focusing on the role of supply chain transparency and supply chain resilience. While opinions differ on the relationship between a firm’s environmental performance, supply chain practices, and financial performance, empirical research has not yet reached a consensus. In this research, we adopted the institutional theory (INT), transaction cost economics (TCE), and the practice-based view (PBV) to develop our conceptual model and attempt to decipher the relationship. The empirical data was collected from 264 UK manufacturing companies and was analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings reveal that decarbonisation efforts positively and significantly influence financial performance. More importantly, the impact of decarbonisation is mediated sequentially through both supply chain transparency and supply chain resilience. The study highlights the benefits of integrating decarbonisation strategies with transparent and resilient supply chain practices.

Item Type	Article
URI	https://centaur.reading.ac.uk/id/eprint/129749
Identification Number/DOI	10.1016/j.ijpe.2026.109988
Refereed	Yes
Divisions	Henley Business School > Digitalisation, Marketing and Entrepreneurship
Publisher	Elsevier
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