Achieving sustainable business outcomes through eco-innovation adoption in manufacturing firms of Pakistan: a higher-order PLS-SEM approach

Purpose Grounded in the natural resource-based view, this study aims to investigate how eco-innovation drivers influence eco-innovation adoption and competitive benefits, which, in turn, foster sustainable business outcomes in Pakistan’s manufacturing sector. It also examines the moderating roles of firm age and firm size. Design/methodology/approach Adopting a positivist philosophy and deductive, quantitative approach, data were collected from 232 manufacturing managers via a cross-sectional online survey. A higher-order reflective–reflective measurement model was specified, estimated and validated using partial least squares structural equation modeling (PLS-SEM). Findings Eco-innovation drivers significantly shape both eco-innovation adoption and competitive benefits. Competitive benefits emerged as the strongest direct predictor of sustainable outcomes. Both eco-innovation adoption and competitive benefits mediate the path between eco-innovation drivers and sustainability performance. Firm age positively moderates the link between competitive benefits and sustainable outcomes, while firm size shows no significant effect. Research limitations/implications This study enriches eco-innovation paradigm by mapping how eco-innovation drivers initiate eco-process, product and organizational innovations that yield competitive benefits and sustainable performance, moderated by firm age in an emerging-economy context. The higher-order model enhances measurement rigor; however, generalizability may be limited due to the modest sample size. Practical implications Managers should mobilize a comprehensive set of eco-innovation drivers to accelerate innovation adoption and secure competitive and sustainability gains. Accounting for firm age dynamics may further amplify these benefits. Originality/value Applying a higher-order PLS-SEM framework, this study presents an integrated examination of eco-innovation drivers, eco-innovation adoption, competitive benefits and firm age as determinants of sustainable business performance in the manufacturing sector of emerging economy.