The role of green technology innovation and digital capability in sustainable management and performance: empirical evidence

Purpose This study aims to use the natural resource-based view and stakeholder theory to explore the relationship between sustainable management (SM) practices and sustainability performance (SP), emphasizing the mediating role of green technology innovation (GTI). The study also examines the moderating effect of digital capability (DC) in the SM practices-GTI relationship, within the context of Vietnam as a developing market. Design/methodology/approach Data collection was conducted through structured survey instruments targeting chief executive officers of manufacturing firms in Vietnam. A rigorous screening process was implemented to ensure the representativeness of the sample, yielding 387 valid responses. The data were analyzed using advanced statistical methods, specifically partial least squares structural equation modeling, to evaluate the proposed hypotheses and examine the relationships within the research model. Findings The results demonstrate that GTI significantly mediates the relationship between SM practices and SP. Additionally, DC strengthens the impact of SM practices on GTI, underscoring its moderating role. Besides, the moderated mediation effect indicates that DC positively moderates the indirect effect of SM practices on SP through GTI. Practical implications The study offers valuable practical insights for firms in developing markets. It highlights the importance of integrating SM practices with green technology initiatives while leveraging digital capabilities to enhance environmental outcomes and achieve long-term sustainable performance goals. Originality/value This study contributes to the sustainability literature by examining the mediating role of GTI and the moderating effect of DC. Situating the study in Vietnam provides novel insights into the dynamics of sustainability management in developing market contexts, addressing gaps in the understanding of how digital transformation can advance sustainability outcomes.