Managing green supply chain performance through digital twin technology – insights from SMEs and large firms

Abstract

As supply chains transition toward Society 5.0, firms face growing pressure to adopt digital technologies that simultaneously enhance resilience and environmental sustainability. This study investigates how firm readiness is associated with Technology–Organization–Environment (TOE) support conditions for digital twin adoption and how such adoption is associated with higher green supply chain performance in Thailand. An explanatory sequential mixed-methods (QUANT → QUAL) design was employed. Quantitative data from 607 employees across SMEs (n = 366) and large firms (n = 241) were analyzed using covariance-based structural equation modeling and multi-group analysis, followed by 40 in-depth interviews to contextualize the statistical results. The findings show that firm readiness is strongly positively associated with technological and organizational support in both firm types, while its association with environmental support is significantly stronger for SMEs. Technological support is associated with digital twin adoption in SMEs but not in large firms, and organizational support exhibits a negative or insignificant effect, reflecting execution and coordination challenges. Environmental support is associated with adoption across both groups. Digital twin adoption is significantly associated with higher green supply chain performance in SMEs and large firms, with stronger operational gains observed among SMEs. Qualitative insights explain these differences by revealing that SMEs rely on readiness to activate ecosystem support, whereas large firms depend on integration and governance mechanisms. This study extends the TOE framework by positioning firms’ readiness as a size-contingent mechanism and provides context-sensitive insights for accelerating sustainable digital transformation in emerging economies.