1. Introduction
With the digital technology revolution in full swing, digital technology adoption is fundamentally reshaping business practices such as innovation and supply chain management [
1,
2,
3]. This has a major impact on firm performance, not only in financial aspects but also in environmental aspects, operational aspects, etc. [
2,
4,
5]. For one thing, digital technology adoption is conducive to economic performance through improved operational efficiency, decision-making accuracy, and dynamic capability [
6,
7,
8]. For another, its adoption is conducive to social responsibility performance through upgrading green technology and product design, optimizing resource allocation and production processes, and providing inclusive digital solutions and remote work opportunities [
9,
10]. As such, the alignment of economic performance and social responsibility enables firms to achieve sustainable development from digital technology adoption. Put another way, digital technology adoption can be introduced as a primary motivator for sustainable performance [
3,
11].
Most existing researches are based on resource-based views and dynamic capabilities theory. They argue that the positive performance of digital technology adoption comes from making the required resources and capabilities accessible [
5,
12], which can be mediated by internal capabilities [
6,
7], resources [
12], and processes [
13]. However, other studies draw different conclusions, such as the insignificant and inverted U-shape nexus of digital technology adoption and performance [
14,
15,
16]. These mixed conclusions make it necessary to seek a new perspective to better understand how digital technology adoption influences performance, especially for sustainable performance. Compared with the deterministic resources and capabilities, affordance theory, which emphasizes the action potentials of technology and the possible achievement [
17,
18,
19,
20], is an appropriate lens. From this lens, digital technology adoption acts as an action potential, which could be possibly transformed as achieved actions before influencing sustainable performance. Therefore, this study builds on affordance theory to investigate the impact of digital technology adoption on sustainable performance.
With this in mind, two research gaps need to be filled. Under the dual thrust of globalization and unhooking, supply chain innovation, which refers to incremental and radical changes related to all functions in the supply chain and the entire supply chain model, increasingly grows [
21,
22,
23,
24,
25]. Being an integrative change that solves innovation problem across all functions and members in supply chain [
23,
26], supply chain innovation is associated with inter-firm alignment, integration, and adaptation to each other [
27,
28]. This not only leaves a broad application space for digital technology [
24], but is also considered as a fundamental enabler of sustainable performance [
24,
29,
30,
31]. For example, an emerging circular economy mode of supply chain innovation conducted by Apple, Foxconn, and JD, jointly named as the “reuse and recycling program”, recycles the unwanted cellphones from users with digital technology adoption, contributing to the firm’s sustainable performance in entire supply chain [
26]. While the practical sector has concentrated on the performance effects of digital technology adoption and acknowledged the importance of supply chain innovation, it remains theoretically underexplored. In other words, how supply chain innovation mediates the relationship between digital technology adoption and sustainable performance is under-researched in literature [
6,
32].
Additionally, scholars and practitioners are increasingly interested in the external environments in supply chain setting, especially in the post-COVID-19 era [
24,
30,
33,
34]. As a core characteristic of external environment, environmental munificence refers to the resources available in an environment [
35,
36]. Higher environmental munificence with abundant resources would imply lower uncertainty and dynamics of the environment [
36]. In light of this, examining the contextual role of environmental munificence is beneficial for understanding the mechanism of supply chain innovation between digital technology adoption and sustainable performance. However, while external environments are considered as essential contextual factors influencing the innovative application of supply chain management [
2,
37,
38], the specific role of environmental munificence in the relationship between digital technology adoption and sustainable performance through supply chain innovation remains understudied.
To fill the aforementioned research gaps, this study posits the following two research questions:
RQ 1: How does digital technology adoption affect the sustainable performance indirectly through supply chain innovation?
 RQ 2: Does environmental munificence play a moderating role in the indirect relationship between digital technology adoption and sustainable performance via supply chain innovation?
 To answer these questions, this study, based on the contingent affordance theory, develops a theoretical model to reveal the mechanisms underlying the relationship between digital technology adoption and sustainable performance, as well as the contingent role of external environment. In particular, by analyzing the matched multisource data of 157 Chinese human resources service firms, we investigate the mediating role of supply chain innovation in the relationship between digital technology adoption and sustainable performance, as well as the moderating role of environmental munificence in this indirect relationship. Furthermore, we confirmed the robustness of our results in three ways.
Accordingly, we make three major contributions. First, we uncover the action potentials of digital technology and the action actualization role of supply chain innovation to transform digital technology adoption into sustainable performance according to the affordance actualization (A-A) theory. This action potential is different from the deterministic resources and capabilities acquired by digital technology adoption according to resource-based view and dynamic capability frameworks. Second, we offer a more nuanced understanding of the digital technology adoption–sustainable performance links by considering environmental munificence as an affordance actualization context, which constrains this indirect actualization process. In this vein, environmental munificence provides a boundary condition to influence the transformation of supply chain innovation from digital technology adoption to sustainable performance. Third, we extend affordance theory by considering both the A-A pathway and the A-A context. The extended affordance theory is named as the contingent affordance actualization in this study.
  4. Methods
  4.1. Sample and Data Collection
This study used matched multisource data, including survey data from dyadic senior managers and objective data from a public website. Due to the COVID-19 pandemic, we collected online survey data in Shandong Province of China from June to August 2021. On the one hand, the choice of this province was strategically suitable due to its crucial role in the Bohai Rim, one of China’s three primary economic belts. Located in China’s eastern coastal areas at the forefront of digital economy development, this province is known for its dynamic economic activity, significant Gross Domestic Product (GDP) contribution, and role as a hub of traditional Chinese culture, making it representative of typical Chinese business practices. On the other hand, the human resources service industry is appropriate to offer a particularly novel testing ground for the theorized relationships. The changes of blurred industry boundaries and online trends are prompting the human resources service industry to adopt digital technologies, such as smart robots, artificial intelligence, and big data analytics, especially during and after COVID-19. In addition, supply chain innovation through digital technologies, such as pursuing a cutting-edge system, updating of various equipment, innovating supply chain processes, adopting agile and responsive processes, and adjusting supply chain structure, has attracted increasingly attentions in the human resources service industry to purse sustainable performance. A trained survey team representing us sent emails including a two-part questionnaire to the senior managers (Source 1 for entrepreneurs and Source 2 for digital department managers) of 1846 human resources service firms with the support of the Human Resources and Social Security Work of Shandong Province. We assured each participant of strict anonymity and confidentiality, acquiring 494 responses from entrepreneurs in relation to supply chain innovation and sustainable performance, as well as 174 responses from digital department managers in relation to digital technology adoption. After matching the two source responses of this channel, we received 163 valid responses. Second, according to the names of 163 firms, we collected objective data from Chinese official website of the National Bureau of Statistics to measure environmental munificence. Finally, after removing firms that have been deregistered and cannot be queried for the specific deregistration time, 157 valid samples were included for analysis in this study.
Table 2 shows the characteristics of the 157 firms. Among them, most firms are private firms (77.71%) and the number of employees in a firm is generally less than 1000 (98.09%). Firm age and digital transformation modes are relatively balanced. In terms of firm age, less than 3 years, 3–10 years, and more than 10 years respectively account for 49.68%, 29.30% and 21.02%. As for digital transformation modes, 43.31% are business-pull mode, and 56.69% are technology-push mode.
   4.2. Measures
The structured survey instrument in this study was designed in advance based on well-validated scales in previous literature, using the 7-point Likert scale with different interpretations. For example, depending on the measurement needs, 1 indicated “totally not adopted” and 7 indicated “totally adopted” when measuring digital technology adoption, while 1 indicated “totally disagree” and 7 indicated “totally agree” when measuring supply chain innovation. We also employed a forward–backward translation method to ensure conceptual equivalence.
Digital technology adoption. We measured this by using eight items derived from Frank et al. [
73] and Li et al. [
2], with a Cronbach’s α (CA) value of 0.973. Specifically, the digital department manager was asked to explain the extent to which their firms have implemented cloud computing, big data and analytics, network security technology, (intelligent) robots, blockchain, Cyber Physical System, embedded technology, and IoT in their operations. We developed an average composite measure based on eight items to capture the overall level of firms’ digital technology adoption.
 Supply chain innovation. We measured this by using six items derived from Afraz et al. [
48], with a CA value of 0.990. Specifically, six items are “Our organization pursues a cutting-edge (leading technology) system to integrate information on the supply chain,” “Our organization focuses on continuous updating of various equipment (including vehicles, packages or other physical assets) to foster supply chain innovation,” “Our organization pursues continuous innovation in core global supply chain processes,” “Our organization pursues agile and responsive processes against changes,” “Organizational changes within our organization are taken into account,” and “The adjustment and change of supply chain structure are taken into account.”
 Sustainable performance. We measured this by using fifteen items adapted from Li and Atuahene-Gima [
74] and Oberseder et al. [
75] from both economic and social responsibility perspectives, with a CA of 0.935. In the economic performance respect, entrepreneurs as respondents subjectively rated their perceptual performance in terms of return on investment, return on sales, return on assets, profit growth, and cash flow from market operations. Among other items measuring social responsibility performance, “Our organization contributes to the economic development of the region,” “Our organization preserves jobs in the region,” and “Our organization respects regional values, customs, and culture” were used from the community domain. Three items were used from the shareholder domain, including “Our organization invests capital of shareholders correctly,” “Our organization communicates openly and honestly with shareholders,” and “Our organization provides sustainable growth and long-term success.” The last four items were used from the societal domain, including “Our organization employs people with disabilities,” “Our organization makes donations to social facilities,” “Our organization supports employees who are involved in social projects,” and “Our organization contributes to solving societal problems”. It is worth addressing that according to the triple bottom line principle, sustainable performance includes three dimensions: economic, social, and environmental. The reason why this study excludes the environmental dimension is due to industry factors; that is, the human resources service industry does not involve the emission of three wastes (waste gas, waste water, and waste residue).
 Environmental munificence. This construct was calculated using the growth of industry sales in previous studies [
35,
36]. Considering that our samples come from the same industry but are located in different regions, we calculated the munificence based on regional GDP to reflect the extent to which environmental resources support the sustained growth for the firms in the region. First, we collected the GDP of each city from 2017 to 2021 through Chinese official website of the National Bureau of Statistics. Second, using annual data from the city where the firm is located, we used the ordinary least squares (OLS) regression to predict regional GDP, in which time served as an independent variable. Third, we adopted the ratio of the slope in the regression to the regional GDP’s mean as the measurement of environmental munificence.
 Control Variables. Given the impact of other organizational factors, we included four firm-level control variables: firm age, firm size, firm ownership, and digital transformation modes. Firm age was measured as the difference between the year 2021 and the firm’s founding year. Firm size was included after logarithmic transformation of total employee numbers. Firm ownership (0 for non-state-owned firms and 1 for state-owned firms) and digital transformation modes (0 for technology-push mode and 1 for business-pull mode) were measured both as binary variables.
  4.3. Reliability and Validity
To ensure the content validity of the questionnaire, we invited two innovation research experts to assess and modify the statements. Additionally, 50 Chinese firms were selected for a pilot study to further modify the item descriptions. 
Table 3 presents the reliability and validity of the measures. First, the CA and composite reliability (CR) values were all greater than the cutoff value of 0.7, indicating acceptable reliability of all constructs. Second, the average variance extracted (AVE) values were 0.615, 0.813, and 0.937 for sustainable performance, digital technology adoption, and supply chain innovation, respectively, which were all larger than the 0.50 cutoff [
76]. These results indicate acceptable convergent validity. Third, all square roots of AVE (along the diagonal in 
Table 3) are greater than all correlations, indicating acceptable discriminant validity [
77].
  4.4. Common Method Bias
The potential issue of common method bias (CMB) was controlled and assessed according to Podsakoff et al. [
78]. Procedurally, preventive measures were implemented, including protecting respondents’ anonymity and collecting combined data [
79]. Statistically, Harman’s single-factor test shows that there are three factors with eigenvalues greater than one extracted from the data by unrotated factor analysis. The first factor accounted for 46.42% of the variance, which was less than the 50% cutoff [
79,
80]. Therefore, CMB was not a significant concern.
  6. Discussion and Implications
  6.1. Research Findings
In the current transformative era, although digital technology adoption is becoming a trend in sustainable management practice, its performance outcomes are uncertain [
4]. Thus, it is necessary to rethink how to realize the potential of digital technology in sustainability. This study empirically investigates how digital technology adoption affects supply chain innovation in pursuit of sustainable performance, particularly at different levels of environmental munificence. Extending to the contingent affordance theory, we theorize that supply chain innovation is an affordance actualization pathway linking digital technology adoption and sustainable performance, while environmental munificence is an affordance actualization context of this indirect process.
Using the matched multisource data of 157 human resources service firms in China, our proposed model was subjected to empirical testing and all hypotheses are supported. First, the results highlight that digital technology adoption facilitates supply chain innovation, consistent with the findings of Chung et al. [
51]. This substantial impact is above the moderate level according to its 
 effect sizes. Furthermore, the results highlight that supply chain innovation mediates the relationship between digital technology adoption and sustainable performance. This aligns with previous studies that emphasize the indirect impacts of digital technology adoption on performance [
1,
2]. Third, our results highlight that environmental munificence significantly weakens the indirect positive impact of digital technology adoption on sustainable performance via supply chain innovation. This is consistent with the idea of previous studies that innovative supply chain management initiatives are more essential for improving performance in environments with low munificence [
71,
87].
  6.2. Theoretical Implications
First, this study incorporates supply chain innovation to bring out the affordance actualization process occurring between digital technology adoption and sustainable performance. For one thing, instead of focusing on a specific digital technology such as big data analysis and the domain performance such as operational performance in previous literature [
7,
54,
88], we treat digital technology as a holistic concept and sustainable performance as a performance synthesis to investigate the relationship between them, advancing a more comprehensive understanding on digital technology performance benefits. For another, previous studies focus primarily on the indirect impact of digital technology adoption on performance with the mechanisms of internal capabilities [
6,
7] and resources [
12], leaving indirect links in the supply chain level under-researched. Supplementally, the current study pays the attention to supply chain innovation as an intermediary. It argues that digital technology adoption inspires the innovative activities occurring in the supply chain with their functional and coordinated action potentials. In turn, supply chain innovation aligns with the broader goals of sustainable development, including economic prosperity and social responsibility, thus contributing to sustainable performance. The results confirm that supply chain innovation mediates the relationship between digital technology adoption and sustainable performance. In this respect, this study delves into the specific operational pathways through which digital technology can be transformed into an improvement in sustainable performance. As such, we contribute to the related literature not only by moving beyond broad discussions about digital technology performance implications, but also by constructing a more complete picture of its performance improvement pathways. This study also extends the scope of supply chain innovation’s mediation role by unveiling its potential to transform digital technology adoption into sustainable performance, which is different from the deterministic resources and capabilities according to resource-based views and dynamic capability frameworks.
Second, this study offers a more nuanced understanding of the boundary conditions for the affordance actualization process from digital technology adoption to supply chain innovation and sustainable performance, by considering environmental munificence as an affordance actualization context. Extant quantitative research related to supply chain management highlights the vital role of environmental factors [
2,
37,
38]. In the supply chain innovation settings that particularly stresses a quick response to changes of environment [
24,
28,
48], it is necessary to investigate their boundary conditions. The contingent role of environmental munificence in supply chain innovation is unclear, especially when supply chain innovation functions as an intermediary. This study investigates the moderated mediating role of environmental munificence. As expected, environmental munificence is found to weaken the indirect impact of digital technology adoption on sustainable performance via supply chain innovation. This finding also contributes to more complete and refined understanding of the contingency impacts of environmental munificence in digital and innovative context.
Third, this study contributes to the affordance theory by extending the A-A perspective to the contingent A-A perspective. While existing research applying A-A perspective has made some contributions, such as Trocin et al. [
19] and Li et al. [
59], they primarily drawn on process framework investigate the link and mechanism between affordances and outcomes through case studies, with less investigation of boundary conditions. Even though only a few exceptions were examined, they often combine with other established theoretical consensus rather than being grounded in affordance theory [
18]. Notably, affordance theory clearly posits that affordances change among different contexts or goals and are not actualized in a vacuum [
18,
61,
62]. However, although prior research has identified contingency theory as an important one in digital technology (e.g., [
4]) and supply chain research (e.g., [
48]), contingent perspectives on the affordance theory are underdeveloped in the literature. This study puts forward the contingent A-A by considering both the A-A pathway and the A-A context, which is also quantitively examined by grounding the moderated mediation model.
  6.3. Practical Implications
From a practical standpoint, this study provides more effective strategies and actionable insights for managers seeking to leverage digital technology for sustainable performance in uncertain environments.
First, managers should invest in digital technology as a crucial infrastructure for sustainable development. Specifically, adopting digital technology is helpful for conducting supply chain innovation to enhance sustainable performance. Managers should utilize both the functional action potentials such as smart contracts of blockchain and the coordinated action potentials such as digital platforms to conduct supply chain innovation. For example, human resources service firms could utilize the powerful natural language processing and non-verbal behavior analysis function of AI for initial recruitment interviews, enhancing their service speed. Moreover, the form, scope, and degree of supply chain innovation should not be limited, including the innovativeness in any supply chain functions and aspects (product, technology, process, or both) in an incremental or radical way. For example, human resources service firms could develop online learning and personnel management platforms to improve their training and outsourcing services. In turn, both economic and social responsibility performance improvements are achieved.
Second, during the process of supply chain innovation using digital technology, managers should watch out the level of environmental munificence. This study finds that environmental munificence weakens the indirect impact of digital technology adoption on sustainable performance via supply chain innovation. In this case, managers are advised to be watchful and cope with organizational inertia when environmental munificence is high, thus effectively harnessing digital technology to drive supply chain innovation and gain high sustainable performance. For example, being in the film industry with relatively sufficient resources, continuous growth opportunities, and less competitive pressure, that is, a munificent environment, led the former industry giant—Kodak—to fall into the organizational inertia of relying on its dominant film division and fail to effectively leverage digital technology for supply chain innovation, thus ultimately declining at a fast pace.
  6.4. Limitations and Future Research
There are still some research limitations that need to be improved in future research. First, the cross-sectional design is a major limitation. While this study combines subjective dyadic survey data and objective data to avoid the potential problems that may exist from a single data source, it is still cross-sectional data and cannot confirm the causal relationship. Future research should consider potential remedies such as longitudinal designs to conquer this limitation. Second, the measurements of environmental munificence and sustainable performance are a concerned limitation. We operationalize environmental munificence using regional GDP growth and capture sustainable performance by simultaneously considering economic and social responsibility dimensions excluding the environmental dimension. Future studies could consider alternative indicators of these two variables: combining both subjective evaluations and objective aspects to measure environmental munificence, and using more widely recognized “Triple Bottom Line” consisting of economic, environmental, and social performance to measure sustainable performance. Third, the adoption of digital technology as a “holistic construct” might obscure nuanced effects of different technologies. This study views digital technology adoption as a holistic construct. A more nuanced understanding of affordances with different digital technology adoption strategies and technolohgy types should be studied in the future. Indeed, this concept can be more nuancedly identified, such as information and communication digital enabling technologies (IDETs) and advanced robotics and integration digital enabling technologies (ADETs) in terms of different technology types [
89], as well as breadth and depth in terms of different adoption strategies [
1,
8]. With reference to these, future studies could enrich and refine the understanding of digital technology affordances and the relationships in our theoretical model.