Nexus Between Digital Twin, Green Supply Chain Management, and Environmental Performance: Decoding Conceptual Roots

Abstract

For improving operational and environmental performance, the confluence of sustainability and digital innovation has propelled businesses to explore novel approaches. This study examines the role of digital twin (DT) technology in enhancing environmental performance (EP) through Green Supply Chain Management (GSCM) practices. While prior research has examined GSCM and EP, limited studies have investigated the integrated relationship between digital twin technology, GSCM practices, and environmental performance. To address this gap, the current study develops a conceptual model based on a systematic literature review of prior research. The study employs a qualitative research approach, making use of secondary data collected from academic databases such as Web of Science, Scopus, and Google Scholar. Grounded Theory and Conceptual Framework Analysis (CFA) are adopted to identify key constructs and investigate their relationship. The findings suggest that DT enhances supply chain visibility, instantaneous tracking, and forecast-based decision-making, supporting the execution of GSCM approaches such as reverse logistics, eco-design, and green purchasing. Furthermore, the integration of DT enhances environmental outcomes through maximizing resource productivity by mitigating emissions. The study proposes a conceptual model that links DT, GSCM, and environmental performance. It also provides practical implications for businesses to achieve environmental sustainability through digital transformation. Future research should emphasise empirical analysis of the proposed framework in various industries.