Manufacturing firms: digital orientation and sustainable performance

Purpose Based on the dynamic capability theory, this study explores the impact of digital orientation (DO) on sustainable performance and the mediating and moderating effects of organizational agility (OA) and dynamic capabilities. Design/methodology/approach This study is designed as quantitative research, using the hierarchical regression method and Bootstrap analysis to empirically test the survey data collected from 208 Chinese manufacturing companies and explore the actual relationship between the variables in this paper. Findings The findings show that DO has a positive influence on financial performance (FP) and environmental performance (EP); OA mediates the link between DO and sustainable performance; digital dynamic capability (DDC) positively moderated the link between OA and FP, and green dynamic capability (GDC) moderated the link between OA and EP. Research limitations/implications This research contributes to the literature on the relationship between DO and corporate sustainability by developing the conceptual model of orientation-performance. At the same time, it highlights OA capability as a bridge to sustainable performance in manufacturing firms in the digital era. Practical implications This study offers managers and practitioners useful information that using DO as a strategy, showing the potential benefits of OA and different dynamic capabilities in achieving sustainable growth in manufacturing companies. Originality/value This study expands the research paradigm of strategy (DO) → behavior (OA) → outcome (sustainable performance) and expands the research related to dynamic capability theory in the area of digitalization and greening, which provides boundary conditions for the mechanism of the role between OA and sustainable performance.