Leveraging Green Supply Chain Management for Ambidextrous Innovation: The Mediating Role of Information Technology Absorptive Capacity

Abstract

This research proposes the following narrative: How does green supply chain management (GSCM) influence Ambidextrous Sustainable Innovation, with attention to the moderating function of IT absorptive capacity? Specifically, manufacturing SMEs in Iraq were chosen for this study, and questionnaires were distributed among 39 companies through a convenient cluster sampling strategy aimed at top management. By applying PLS-SEM, this study provides empirical evidence that GSCM enhances the enactment of exploitative and exploratory innovation. Also, IT Absorptive Capacity fully mediates this relationship, thereby emphasizing the firm’s competencies to acquire, transform, and exploit IT knowledge to maximize on GSCM. The results presented here provide important strategic insights for SMEs recommending that developing IT capabilities can improve the effectiveness of GSCM efforts to achieve a sustainable innovation perspective. From this research, the knowledge of implementing environmental sustainable strategies with robust IT networks to foster growth, focus innovation, and competitiveness in emerging markets is extended.