Environmental proactivity relates to perceived sustainability performance through green innovation and resource efficiency in Vietnamese manufacturing

Abstract

Manufacturers in emerging economies face simultaneous pressure to reduce environmental impacts and preserve operating competitiveness, yet a proactive environmental orientation does not automatically translate into broad sustainability gains. Drawing on the natural-resource-based view, dynamic capability theory, and institutional theory, this study examines two internal conversion mechanisms green innovation capability and resource efficiency and the contextual role of perceived environmental institutional pressure. Survey data from 278 knowledgeable informants in Vietnamese manufacturing firms were analyzed using partial least squares structural equation modeling, bootstrap mediation and moderation tests, robustness analyses, and 10-fold cross-validation. The findings show that environmental proactivity is associated with perceived sustainability performance both directly and indirectly through two complementary routes: renewal through green innovation capability and operational optimization through resource efficiency. Institutional pressure is positively associated with green innovation capability, but it does not significantly amplify the proactivity–innovation relationship. The study contributes by specifying how strategic environmental intent is converted into sustainability-oriented capabilities rather than treating orientation as a self-executing resource. For managers and policymakers, the results support a balanced portfolio that combines innovation capability building with resource-efficiency improvement, while using external pressure together with technical support, implementation capacity, and green-finance access.