Enhancing organizational sustainable performance through green innovation: the roles of knowledge application, government policy, and green market orientation

Purpose This study aims to investigate the influence of knowledge application, government policy and green market orientation (GMO) on organizational sustainable performance in Vietnam, with a particular focus on the mediating role of green innovation in these relationships. Design/methodology/approach Data were collected from 253 Vietnamese organizations using purposive random sampling and manager-administered questionnaires. The analysis was conducted using partial least squares structural equation modeling. Findings The findings underscore the critical role of government policy in facilitating green innovation and enhancing the sustainable performance of organizations. While knowledge application and GMO are important drivers of green innovation, their direct impact on sustainable performance is not significant. Furthermore, the study confirms the mediating role of green innovation in bridging these relationships. Practical implications The study offers critical insights for policymakers and organizational leaders in emerging markets like Vietnam, demonstrating that strategic investments in knowledge application, green innovation and alignment with GMO and government policies can substantially enhance sustainable performance. Originality/value This research extends the resource-based view and institutional theory by identifying key determinants of sustainable organizational performance. It underscores the pivotal role of knowledge application, GMO and government policy in promoting sustainable performance through the facilitation of green innovation.