Driving Green Performance: How Organizational Readiness Leverages Green Technology Innovation and Absorptive Capacity

Abstract

Recognizing the crucial role that manufacturing firms play in advancing sustainable development and reducing environmental impacts, this study investigates a moderated mediating model to assess how organizational readiness (OR) and green technological innovation (GTI) influence green performance (GP), under the moderating influence of green absorptive capacity, using a theoretical lens of resource-based view theory. This study employed a quantitative approach, “Partial least squares structural equation modeling,” to examine data gathered from 372 management-level individuals in Chinese manufacturing firms. The findings reveal that OR significantly influences firms’ green product and process performance. GTI serves as a mediator between OR and both aspects of GP, with green absorptive capacity further moderating green product performance. For managerial practices and theoretical implications, the study findings offer significant implications by emphasizing the critical role of OR, GTI, and green absorptive capacity for firms’ GP.