Leveraging Green Digital Transformation Capability for Ambidextrous Green Innovation: A Pathway to Sustainability Performance in Taiwan's Manufacturing Sectors

ABSTRACT The convergence of rapid digitalization and growing sustainable concerns has become a global priority, yet research offers mixed evidence on whether digitalization creates environmental and social value or resolves the debated “IT productivity paradox.” Grounded in digital entrepreneurship and the dynamic capabilities view, Green Digital Transformation Capability (GDTC) refers to an organization's ability to sense, seize, and transform sustainability‐oriented opportunities through strategic renewal in green digital transformation. Moreover, integrating ambidexterity theory and sustainability performance, this study explores how GDTC drives ambidextrous green innovation (GI)—both exploitative and exploratory—to enhance corporate sustainability performance (CSP). Data were collected from 312 manufacturing firms in Taiwan and analyzed using structural equation modeling. The results indicate that GDTC significantly strengthens both exploitative and exploratory GI, which in turn enhances CSP. Furthermore, both forms of GI directly contribute to improved CSP and mediate the relationship between GDTC and CSP. This study introduces GDTC as an integrative construct linking digital transformation and environmental sustainability, showing how firms can align digital–green strategies and balance GI to achieve sustainable competitiveness. These findings offer valuable theoretical insights and practical guidance for managers and policymakers seeking to advance digital transformation and sustainability initiatives.