Strategic Drivers of Corporate Sustainability Performance: The Mediating Role of Green Innovation in a Dual‐Method Investigation Using PLS ‐ SEM and fsQCA

ABSTRACT Achieving corporate sustainability performance (CSP) has become a strategic priority for resource‐intensive industries facing increasing environmental and stakeholder pressures. However, limited evidence exists on how green technology adoption (GTA), digital transformation adoption (DTA), and sustainability leadership (SL) jointly contribute to CSP through green innovation (GI), particularly in emerging economies such as Iraq. This study addresses this gap by examining the direct and indirect relationships among these strategic drivers within the Iraqi oil sector. This study employed a deductive, quantitative, cross‐sectional survey of managers in large oil companies in southern Iraq. Using validated questionnaire scales, 578 valid responses were obtained. Partial least squares structural equation modeling (PLS‐SEM) assessed symmetric relationships, while fuzzy‐set qualitative comparative analysis (fsQCA) examined asymmetric causal configurations. The results indicate that DTA and SL have direct positive effects on both innovation and CSP. GTA was found to positively influence GI but did not show a significant direct effect on CSP. Additionally, GI was found to mediate the relationships between DTA and SL and CSP, whereas no mediating effect was observed between GTA and CSP. The results highlight the significance of coordination between technological investments and innovation capabilities as well as leadership practices. The oil industry should focus on the implementation of digital and green technologies using the innovation platform and improve the leadership styles that will contribute to sustainability‐focused strategies. The research has been added to the body of knowledge on sustainability and innovation by offering empirical data based on the Iraqi oil industry and by explaining sustainable performance within the framework of an integrated capability‐based view, which incorporates its technological, innovation, and leadership aspects.