Navigating the Innovation–Sustainability Paradox: The Strategic Role of Leadership and Industry 4.0 in Oman’s Manufacturing Sector

The purpose of the current research study was to evaluate the effect of innovation on sustainability along with the mediating role of top management support and the moderating role of Industry 4.0 between innovation and sustainability. The data were collected through a questionnaire-based survey of manufacturing firms in Oman. PLS-SEM was applied to the data collected from 294 top-level and middle-level managers of manufacturing firms in Oman. The study results revealed that innovation is a positive determinant of the sustainability of manufacturing firms in Oman. Innovation was also found to favourably shape top management support in Oman’s manufacturing firms, which, in turn, impacted sustainability positively. The results suggest that top management support acts as a positive mediator between innovation and the sustainability of Omani manufacturing firms. The findings, however, did not support the moderating effects of Industry 4.0 on the association between innovation and sustainability. The present study is expected to support the literature through its rare findings and empirical evidence, especially regarding the mediating role of top management support between innovation and sustainability. It will also help managers of firms in Oman find ways of building their sustainability performance and develop better strategies to cope with sustainability challenges.