The Interplay of Environmental Dynamism, Digitalization Capability, Green Entrepreneurial Orientation, and Sustainable Performance

The purpose of this study is to understand the interplay between environmental dynamism, digitalization capability, green entrepreneurial orientation, and sustainable performance by using contingency theory and the dynamic capabilities perspective as a comprehensive theoretical lens. More specifically, this study examines the impact of environmental dynamism on the development of digitalization capability and verifies the mediating role of green entrepreneurial orientation between digitalization capability and sustainable performance. As a result of analyzing 450 Chinese manufacturing firms, it was confirmed that environmental dynamism had a significant positive effect on the development of digitalization capability. In addition, the partial mediation effect of green entrepreneurial orientation on digitalization capability and sustainable performance was also identified. This indicates that firms with a green entrepreneurial orientation can better achieve sustainable development through digitalization capability. As a result, this study provides important implications for promoting sustainable development in both the literature and practice and also presents a contribution to current knowledge.