Promoting Net-Zero Economy for Sustainable Development: Practice-Based View

The present research investigates the utilization of various resources, including tangible assets, human expertise, and intangible assets, in a cohesive set of established procedures, which impact the development and implementation of net-zero practices. It also explores the effect on the environmental performance of SME enterprises operating in business markets. Additionally, the study explores whether digitalization plays a moderating role in this relationship. The samples of 291 were used in the study. Data were analyzed using partial least square structural equation modeling. For a sustainable net-zero economy (SNZE), it is essential for managers to acknowledge the importance of resource and capabilities management. While the management of tangible assets and human skills is vital, greater emphasis should be placed on intangible resources like organizational culture and learning. Furthermore, the capacity of small-sized enterprises (SMEs) to process and implement knowledge could prove to be instrumental in accomplishing net-zero targets. Consequently, managers should leverage Industry-4.0-based technological solutions to enhance resource and capabilities management effectively. This research pioneers an exploration into the influence of human capital and various assets (tangible and intangible), on the development and implementation of a SNZE in organizations, underpinned by empirical data. The study broadens the understanding of the practice-based view (PBV) framework in realizing SNZE, particularly within SME B2B enterprises.