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The Green Innovation Gateway: How Technological Capabilities and Environmental Strategies Drive Sustainability Performance in Manufacturing Firms

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  • Yuan Li
  • Thillai Raja Pertheban
  • Qiaoling Li
  • Zheng Guang-Wen

Abstract

This study explores the influence of technological capabilities (TC) and environmental strategies (ENS) on the sustainability performance (SP) of manufacturing firms, using dynamic capabilities theory as a framework. It specifically examines the mediating role of green innovation (GI) in these relationships. Data from 272 managers of manufacturing firms in China were analyzed using partial least squares structural equation modeling (PLS-SEM). The findings indicate that both TC and ENS positively affect GI and SP. Additionally, GI significantly mediates the impact of TC and ENS on SP. By integrating dynamic capabilities theory with empirical evidence from a rapidly developing economy, this research highlights the crucial role of green innovation in strengthening the link between technological and environmental strategies and sustainability outcomes. The study provides valuable insights for practitioners and policymakers, offering practical guidance on enhancing sustainability performance through targeted technological and environmental initiatives. JEL Classification: O32, L6, Q55, Q01, Q58.

Suggested Citation

  • Yuan Li & Thillai Raja Pertheban & Qiaoling Li & Zheng Guang-Wen, 2025. "The Green Innovation Gateway: How Technological Capabilities and Environmental Strategies Drive Sustainability Performance in Manufacturing Firms," SAGE Open, , vol. 15(3), pages 21582440251, July.
    • Handle: RePEc:sae:sagope:v:15:y:2025:i:3:p:21582440251360842
    DOI: 10.1177/21582440251360842
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    Keywords

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    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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