The Green Innovation Gateway: How Technological Capabilities and Environmental Strategies Drive Sustainability Performance in Manufacturing Firms

This study explores the influence of technological capabilities (TC) and environmental strategies (ENS) on the sustainability performance (SP) of manufacturing firms, using dynamic capabilities theory as a framework. It specifically examines the mediating role of green innovation (GI) in these relationships. Data from 272 managers of manufacturing firms in China were analyzed using partial least squares structural equation modeling (PLS-SEM). The findings indicate that both TC and ENS positively affect GI and SP. Additionally, GI significantly mediates the impact of TC and ENS on SP. By integrating dynamic capabilities theory with empirical evidence from a rapidly developing economy, this research highlights the crucial role of green innovation in strengthening the link between technological and environmental strategies and sustainability outcomes. The study provides valuable insights for practitioners and policymakers, offering practical guidance on enhancing sustainability performance through targeted technological and environmental initiatives. JEL Classification: O32, L6, Q55, Q01, Q58.