Abstract
The rapid growth of China's medical industry has raised concerns about environmental sustainability, particularly regarding waste pollution from medical product production. This has led to calls for environmentally friendly production (EFP) practices in the sector. Drawing on the Resource-Based View (RBV) and Dynamic Managerial Capabilities (DMC) perspectives, this study explores the effects of digital transformation (DT) on EFP, with survey data from 316 medical equipment manufacturing companies in China. The findings depict a positive relationship between DT and EFP, mediated by net-zero strategic consensus (NZSC). Furthermore, sustainability orientation (SO) positively moderates the linkage between DT and NZSC. This study developed and validated a series of novel measurement indicators for NZSC and SO. Specifically, we measure NZSC from three dimensions: long term consensus, short term consensus, and strategic optimality; Measuring SO through knowledge, practice, and commitment to sustainability. Therefore, this study contributes to the existing literature, expanding the theoretical application of DT and RBV in the net-zero production field, and providing managerial implications for policymakers promoting EFP practices.