Testing the role of leadership competency and green dynamic capabilities in promoting sustainable development goals: insights from the manufacturing sector

Abstract The manufacturing sector plays a vital role in promoting sustainable development. However, its contribution to achieving Sustainable Development Goals (SDGs) remains insufficiently explored in the literature. This study investigates the complex relationship between leadership competency, green dynamic capabilities, and their influence on SDGs within Pakistan’s manufacturing industry, addressing a gap in research on the sector’s potential to foster sustainability. Hypotheses were tested using Smart-PLS and structural equation modeling (SEM) with data from 371 valid survey responses. The results show that both leadership competency and green dynamic capabilities significantly help in achieving SDGs. Moreover, environmental uncertainty acts as a positive moderator of these relationships, emphasizing the importance of external factors in shaping sustainability strategies across organizations. The study’s implications suggest that broad approaches to green innovation can include both green process and product innovations. Leadership style and dynamic capabilities influence the motivation to pursue either type of green innovation. These findings provide valuable insights for manufacturing companies aiming to adopt sustainable practices and contribute effectively to sustainable development in emerging economies.