The causal and interactive approach to drive sustainability: role of green dynamic capabilities, ambidextrous green innovation strategy and resource orchestration capability

Purpose Grounded in dynamic capabilities and ambidexterity theories, this study investigates how causal and interactive mechanisms promote sustainable outcomes via the prisms of green dynamic capabilities (GDC), ambidextrous green innovation strategy (AGIS) and resource orchestration capability (ROC). Design/methodology/approach The study employed partial least squares-structural equation modelling (PLS-SEM) and fuzzy set qualitative comparative analysis (fsQCA) to assess data gathered from 304 respondents from Chinese manufacturing firms. Findings The findings show that GDC significantly impacts different aspects of sustainable performance and AGIS serves as a significant mediating mechanism. High ROC amplifies GDC’s indirect impact on sustainable performance via AGIS. FsQCA results reveal multiple synergistic pathways of how GDC, AGIS and ROC can bring about better sustainability outcomes. Practical implications The research offers valuable insights and a novel strategy for manufacturing firms and policymakers to mitigate environmental degradation and attain sustainable performance by stimulating AGIS through GDC. Originality/value This paper contributes to sustainability research by integrating dynamic capabilities and ambidexterity theories. It provides actionable insights for manufacturing firms to engage in appropriate green innovation strategies and resource orchestration for sustainable growth.