Organizational ambidexterity and green performance in emerging markets: examining the role of environmental dynamism in sustainability-oriented performance management

Purpose This study examines how organizational ambidexterity influences green performance in emerging market firms and investigates the role of environmental dynamism as a contextual condition shaping this relationship. Responding to growing calls within productivity and performance management research for sustainability-oriented performance frameworks, the study explores how firms integrate exploratory innovation and exploitative efficiency to achieve environmental performance outcomes. Design/methodology/approach A quantitative cross-sectional survey design was employed using data collected from 249 firms operating in the Greater Kumasi Metropolitan Area of Ghana. Structural equation modeling using Analysis of Moment Structure was applied to test the direct effects of organizational ambidexterity and environmental dynamism on green performance, as well as the moderating influence of environmental dynamism. Findings The results show that organizational ambidexterity significantly enhances green performance, demonstrating that firms capable of balancing exploratory innovation with exploitative efficiency achieve superior environmental outcomes. Environmental dynamism also exhibits a strong positive direct effect on green performance. However, contrary to contingency expectations, environmental dynamism does not significantly moderate the relationship between ambidexterity and green performance, suggesting that internal strategic capabilities play a more decisive role than external turbulence in shaping sustainability performance in emerging market contexts. Research limitations/implications The study relies on cross-sectional and perceptual data from firms operating within a single emerging economy. Future research could adopt longitudinal designs, incorporate objective environmental performance indicators, and explore antecedents of organizational ambidexterity to deepen understanding of sustainability-driven performance management. Practical implications The findings highlight the importance for managers to develop ambidextrous capabilities that integrate innovation with operational efficiency. Firms seeking to improve sustainability outcomes should embed environmental initiatives within performance management systems while simultaneously encouraging experimentation and process optimization. Originality/value This study contributes to productivity and performance management literature by demonstrating that organizational ambidexterity functions as a critical capability for achieving green performance in emerging markets. By providing empirical evidence from sub-Saharan Africa and revealing that environmental dynamism acts as an independent driver rather than a boundary condition of sustainability performance, the study advances understanding of the sustainability–performance nexus in volatile institutional environments.