The effects of green orientation and technological agility on sustainable competitive advantage under environmental uncertainty: Organizational agility as a pathway

Despite the strengthened efforts on sustainability and technological activities by firms, the existing literature lacks a clear picture regarding how green orientation (GO) and technological agility (TAG) can be transformed into sustainable competitive advantage (SCA) and at what time the conversion process may be most efficient. This paper conceptualizes organizational agility (OGA) based on the resource-based view (RBV) and dynamic capabilities theory (DCT) and hypothesizes that GO and TAG indirectly affect SCA with the mediating impact of environmental uncertainty (ELU). A moderated-mediation model was tested based on a sample of 200 managers (HR, marketing, accounting/finance, quality control, R&D) of auto-parts manufacturers in industrial clusters in Gujarat, India, and measured with PLS-SEM. The findings indicate that GO and TAG have positive effects on OGA and SCA and that OGA plays a significant mediation role in the association of GO and SCA, as well as TAG and SCA. Nevertheless, the conditional indirect hypothesis effects of ELU were not significant and indicated that the routinized agility could shield the firms against the legitimacy turbulence in the process of transforming the sustainability intent and technological responsiveness into competitive results. The research makes a contribution to theory by explaining how the effects of orientations make sense when beneficial and defining a condition of what might be termed a limit in which the capability effects are enhanced. On the managerial front, it emphasizes the aspects of co-investment of GO and TAG along with the institutionalization of agility routines to achieve sustainability-driven competitiveness in dynamic markets. • The study examines how Green Orientation (GO) and Technological Agility (TAG) drive Sustainable Competitive Advantage (SCA). • It introduces Organizational Agility (OGA) as a mediating factor in converting sustainability and technology capabilities into competitive outcomes. • It integrates Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT) to explain the strategic roles of green and agile practices. • PLS-SEM is used to empirically analyze responses from 200 manufacturing firms in Gujarat, India. • The analysis shows Environmental Uncertainty (ELU) does not significantly moderate the agility–advantage link, emphasizing the strength of internal adaptability. • The study offers practical insights for firms seeking resilience through sustainability and technology-driven agility in uncertain environments.