Leveraging technological readiness and green dynamic capability to enhance sustainability performance in manufacturing firms

Purpose This research explains the critical role of technological readiness and green dynamic capabilities in enhancing the sustainability performance of manufacturing firms, which is pivotal for achieving the United Nations’ Sustainable Development Goals. The theoretical framework is grounded in the dynamic capability theory, positing that technological readiness enhances a firm’s green dynamic capabilities, and employee green behavior moderates the effect on the sustainability performance of manufacturing firms. Design/methodology/approach Quantitative data from 1,660 managerial employees of a diverse sample of manufacturing firms was aggregated at the firm level using interclass correlation and interrater agreement, ensuring robustness using at least two responses per firm. With the final dataset of 418 firms, structural equation modeling was conducted using AMOS26. Findings The findings reveal that technological readiness positively affects sustainability performance and enhances it through green dynamic capabilities. Furthermore, the study highlights the positive moderating role of employees’ green behavior, amplifying the impact of green dynamic capabilities on sustainability performance. Originality/value This research makes a novel contribution to the body of knowledge by integrating dynamic capability theory with empirical evidence on sustainability performance. It represents a significant step toward promoting a more sustainable and responsible future for organizations and society and provides comprehensive insights into the complex interplay of these variables. These insights are crucial for academia, industry practitioners and policymakers striving to foster sustainable practices within the manufacturing sector.