Navigating Environmental Uncertainty and Sustainability Orientation for Environmental Performance: The Mediating Role of Green Innovation and the Moderating Role of Technological Intensity

Abstract

Environmental sustainability has become a strategic priority for manufacturing firms operating amid increasing environmental uncertainty and technological change. This study examines the effects of environmental sustainability orientation and perceived environmental uncertainty on environmental performance, considering green innovation as a mediating mechanism and technological intensity as a moderating condition. Drawing on the Natural Resource-Based View, the study employed a quantitative cross-sectional design using data from 380 managerial respondents representing manufacturing firms in Punjab, Pakistan. The proposed relationships were analyzed through partial least squares structural equation modeling using SmartPLS 4. The findings indicate that environmental sustainability orientation and perceived environmental uncertainty positively influence environmental performance. Green innovation significantly mediates both relationships, demonstrating its role in translating strategic environmental priorities and perceived external uncertainty into improved environmental outcomes. Technological intensity further strengthens the positive relationship between green innovation and environmental performance. The study extends the Natural Resource-Based View by integrating strategic orientation, environmental uncertainty, innovation, and technological capability within an emerging-economy manufacturing context. Practically, the findings emphasize aligning sustainability strategies and green innovation initiatives with firms’ technological capabilities to achieve stronger environmental outcomes.