Green absorptive capacity and environmental sustainability: unveiling the interplay and moderating roles of blockchain and supply chain finance

Purpose Drawing on dynamic capability theory and the natural resource-based view, this study aims to examine how green absorptive capacity (GAC) enhances environmental sustainability performance (ESP) through financial performance (FP) and operational performance (OP) and how blockchain technology (BCT) and supply chain finance (SCF) strengthen these indirect relationships. Design/methodology/approach Data were collected from 522 organisations in Egypt and 508 in Jordan. Covariance-based structural equation modelling was used to test the moderated mediation model. Findings The results show that in both Egypt and Jordan, GAC improves ESP indirectly through FP and OP. In Jordan, blockchain technology strengthens the indirect relationship through both financial and operational performance, whereas in Egypt these blockchain effects are not supported. Supply chain finance strengthens the indirect relationship through operational performance in both countries, but not through financial performance. The nested model comparison indicates that whilst the overall model applies to both contexts, BCT and SCF exert varying degrees of influence in Egypt and Jordan. Research limitations/implications The results can support policymakers and organisational stakeholders by showing how digital technologies and green financing mechanisms can be used to strengthen the impact of green knowledge on performance and accelerate progress towards environmental sustainability. Originality/value This study develops and tests an integrated moderated mediation framework explaining how green absorptive capacity enhances environmental sustainability performance through financial and operational performance and how blockchain technology and supply chain finance strengthen these indirect relationships. By comparing Egypt and Jordan, the study extends dynamic capability theory and the natural resource-based view through context-specific evidence from two Arab emerging economies and reveals country-specific differences in the effectiveness of digital and financial enablers.