Digital Entrepreneurship! Nexus among Industry 4.0 enablers, environmental dynamism, and SMEs environmental performance: A mediated-moderated perspectives

Purpose: There is currently a lack of comprehensive examination in the research field exploring the relationship between digitalization and environmental performance (EP) in manufacturing small and medium-sized enterprises (SMEs). This study investigates the relationship between digital technologies, digital organizational culture (DOC), environmental dynamism, and EP through the mediation of innovation capacity (IC) and moderation of perceived environmental volatility and green strategic intent (GSI). Design/ methodology/approach: The data were garnered from 473 managers of manufacturing SMEs in Pakistan. Partial Least Square Structural Equation Modeling (PLS-SEM) was applied to examine the mediation and moderation effects. Multiple regression analysis was used to see the influence of digital technologies, DOC, environmental dynamism, innovation capacity, perceived environmental volatility, and GSI on SMEs environmental performance. Results: Results indicate a statistically significant direct relationship between digital technologies, environmental dynamism, and EP. While an insignificant direct relationship between DOC and EP. Furthermore, the results reported a significant result between digital technologies, DOC, environmental dynamism, and IC. Similarly, IC significantly mediated the relationship between digital technologies, DOC, environmental dynamism, and EP. Moreover, results reported that perceived environmental volatility does not moderate the relationship between IC and EP, while GSI significantly moderates between IC and EP. Practical Implications: Policymakers must emphasize advancing digital integration to enhance manufacturing SMEs' efficiency and environmental effectiveness. Originality/value: This is the first research that incorporates digital technologies, environmental factors, and innovation capacity to measure environmental performance in line of with Natural Resource Orchestration Theory (natural ROT). All the variables significantly measure environmental performance instead of digital organizational culture. Perceived environmental volatility also does not moderates.