Does innovative technology usage increase organizational performance? Not without sustainable supply chain management!

Abstract

Organizations are under pressure to innovate while embedding sustainability, yet the link between technology adoption and performance remains ambiguous. While technology is often assumed to directly boost competitiveness, this study argues that its benefits emerge only when integrated with sustainable supply chain management (SSCM). Using survey data from 151 Turkish manufacturing firms and partial least squares structural equation modeling (PLS-SEM), the research examines how innovative technologies influence organizational performance through SSCM. The findings reveal that innovative technology usage does not directly enhance performance (H1 unsupported). Instead, it significantly improves SSCM (H2 supported), which in turn positively affects organizational performance (H3 supported). Crucially, SSCM fully mediates the relationship between technology usage and performance (H4 supported), showing that technology’s value creation depends entirely on sustainability integration. These results challenge conventional assumptions about digital transformation and identify SSCM as the critical mechanism linking technology to business success. The study contributes to theory and practice by emphasizing that organizations must align technology investments with sustainability strategies to achieve lasting competitive advantage.