Substitution over synergy: green culture, supply chain practices and leadership in manufacturing innovation

Purpose This study reveals novel patterns in manufacturing capability development for environmental innovation among manufacturing small and medium-sized enterprises (SMEs). The study examined how green supply chain management (GSCM) practices relate to Green product innovation (GPI) through leadership mediation and cultural moderation. Design/methodology/approach The study adopts a cross-sectional survey design. Data were collected from 517 manufacturing SMEs using structured questionnaires. The study adopts Partial Least Squares Structural Equation modelling and Artificial Neural Networks to examine and validate the findings. Findings GSCM practices relate positively to GPI both directly and through green leadership support mediation. A novel substitution pattern emerged between green organisational cultures and supply chain practices in their associations with leadership support. This challenged conventional complementarity assumptions. Green organisational cultures demonstrated the strongest association with innovation, while leadership effectiveness remained consistent across cultural contexts. Originality/value The study identifies substitution rather than complementarity between environmental mechanisms, advancing theory for resource-constrained contexts and providing selective capability development strategies for manufacturing managers.