Sustainability　issues　in　the　food　industry　have　been　witnessed　to　impact　on　public　stability,　human　health　and　living　standards　in　the　past　decades.　Practitioners　and　academia　have　raised　attention　to　develop　supply　chain　traceability　(SCT)　in　the　context　of　Industry　4.0　technologies　in　order　to　improve　operational　efficiency　and　reduce　environmental　impact.　Drawing　on　the　extended　knowledge-based　view,　this　study　has　collected　303　questionnaire　surveys　to　test　the　impact　of　SCT　practices　on　improving　food　manufacturers’　sustainability　performance,　addressing　on　the　economic,　environmental　and　social　sustainability,　with　consideration　of　knowledge　integration　and　environmental　dynamism.　Our　results　show　that:　(1)　SCT　has　a　significant　positive　impact　on　the　three　pillars　of　sustainability　performances　among　food　manufacturers.　(2)　Knowledge　integration　mediates　the　relationship　between　SCT　and　sustainability　performance;　(3)　Environmental　dynamism　plays　a　moderating　role　in　the　direct　path　between　SCT　and　social　performance.　This　study　contributes　new　theoretical　insights　to　highlight　knowledge　integration　in　support　of　traceback　investigation　for　improving　sustainability　performance　a　dynamic　environment.　The　results　make　substantial　contributions　on　better　implementation　of　sustainable　food　supply　chain,　to　enhance　operations　and　supply　chain　practices　in　the　food　chain,　and　to　support　government　policymaking　in　an　environmental　dynamic　context.　©　2023　The　Author(s).　Published　by　Informa　UK　Limited,　trading　as　Taylor　&　Francis　Group.