Moving beyond boundaries: role of coopetition capabilities for disruptive green innovation and sustainable development through knowledge absorptive capacity

Purpose The dynamic business environment compels competitors to work together to address the socioeconomic and environmental turbulences, cultivating a win−win environment for all stakeholders. It can become challenging for firms to achieve their strategic objective without developing adequate capabilities and understanding when, where and how to collaborate with rivals. Based on the resource-based view, this study aims to examine how coopetition capability impacts Turkish manufacturing firms’ disruptive green innovation (DGI) and sustainability performance. This study examines knowledge absorptive capacity as a boundary condition in this relationship. Design/methodology/approach This study followed a quantitative research approach and relied on 267 responses from 138 firms collected through a structured questionnaire. Findings The data analyzed through structural equation modeling indicated that coopetition capability positively and significantly influences DGI and firm sustainability. DGI indicated an insignificant impact on the sampled firms’ sustainable performance. Moreover, knowledge absorptive capacity positively moderates the relationship among principal variables. Practical implications This study provides practical insights for managers looking to improve their organization’s abilities in coopetition and innovation. Companies can better promote DGI and attain sustainable performance by enhancing their coopetition abilities and investing in their capacity to absorb knowledge. Policymakers might use these insights to encourage teamwork and innovation in the manufacturing industry. Originality/value This research adds to the existing literature by incorporating knowledge absorptive capacity into the coopetition-DGI-sustainability framework, offering fresh perspectives on how internal capabilities foster innovation and sustainability. This emphasizes the important function of absorptive capacity in helping companies use coopetition for sustainable growth.