How Can Technology Orientation Promote Green Process Innovation? The Mediating Effect of Digital Capability and the Moderating Role of Innovation-Oriented Leadership

In the context of the global carbon neutrality process intertwined with the digital technology revolution, firms are facing unprecedented opportunities and challenges in green process innovation (GPI). Therefore, achieving GPI has become a critical issue for academics and industry practitioners. To deepen the understanding of the driving factors of GPI, this study explores how technology orientation can effectively promote GPI, considering the mediating role of digital capability and the moderating effect of innovation-oriented leadership. Utilizing a two-stage lagged data collection approach, we gathered information from a sample of 291 manufacturing firms in China. The findings reveal that technology orientation has a direct positive effect on GPI and also exerts an indirect influence through digital capability. Furthermore, innovation-oriented leadership significantly strengthens the positive impact of technology orientation on digital capability. This research contributes to the existing literature by providing a comprehensive theoretical framework that integrates technology orientation, digital capability, and leadership dynamics while focusing on the specific context of Chinese manufacturing. It offers practical insights for firms in China seeking to bridge the gap between technological advantages and environmental benefits in the pursuit of carbon neutrality, ultimately guiding them in effectively leveraging technology for sustainable development.