A multi-analytical investigation of explorative IT capability on green innovation and environmental regulations in enhancing organizational performance

Purpose Despite rising digital investments, manufacturers in emerging economies struggle to convert explorative IT capabilities into better performance, especially under environmental regulations. This research, grounded in Ambidexterity Theory, examines how explorative IT capabilities boost performance via green innovation in Pakistan's manufacturing sector. Design/methodology/approach The study employs multi-analytical methods, including partial least squares structural equation modeling, necessary condition analysis and importance-performance map analysis, to test the hypothesis among 620 respondents using survey data. Findings Findings show that explorative IT capability boosts organizational performance via green innovation, strengthened by environmental regulations. Analyses identify necessary and performance-enhancing capabilities. Originality/value This paper explains how explorative digital capabilities drive sustainability outcomes in manufacturing. Using sufficiency- and necessity-based methods, it offers a decision-focused view that guides managers to invest in the most impactful digital capabilities for maximum returns.