Organizations must develop new green products and processes to gain a competitive advantage and achieve sustainable goals. This study aims to uncover the mechanisms, such as digital transformation (DT), through which organizations driven by a green entrepreneurial orientation (GEO) can enhance the development of green product innovation (GPI) and green process innovation (GPCI), grounded in the resource-based view (RBV) theory. The authors also anticipate international opportunities (IO) to strengthen the relationship between DT, GPI and GPCI, anchored in institutional theory.
The data were collected through a multiwave study from 440 managerial-level employees working in the manufacturing industry in Punjab, Pakistan. The authors used partial least squares structural equation modelling to evaluate the hypotheses proposed in the theoretical model.
The findings have shown significant relationships between GEO, GPI and GPCI. The research findings further support the notion that DT serves as a mechanism for enhancing GEO, GPI and GPCI relationships. Additionally, firms’ seizing IO as a boundary condition strengthened the link between DT, GPI and GPCI.
Grounded in the RBV and institutional theory, this study offers novel empirical insights by exploring the underlying mechanisms and contextual boundary conditions through which GEO influences GPI and GPCI. However, addressing a critical yet underexplored gap, this research examines the interplay between GEO, DT and IO, with a specific focus on the manufacturing sector in Punjab, Pakistan. By concentrating on a regional context often overlooked in green innovation discourse, this study provides valuable theoretical and practical implications for manufacturing firms pursuing green initiatives, particularly those aiming to leverage DT and IO to advance their GPI and GPCI efforts.
