Purpose Small- and medium-sized enterprises (SMEs) frequently face limitations in the specialized resources and capabilities required to implement effective environmental management. This study explores how outsourcing environmental management to environmental management specialists can help SMEs improve their environmental performance. Design/methodology/approach This study surveyed 527 Chinese SMEs, gathering data from their environmental supervisors and health, safety and environment managers, to examine how three core environmental management specialists capabilities interact to influence environmental learning and performance. Findings This study identifies three core environmental management specialists capabilities that positively correlated with SMEs' ecological learning capability. The relationship is further strengthened by incentive alignment, while the link between ecological learning capability and environmental performance is negatively moderated by environmental dynamism. Research limitations/implications Using interorganizational learning theory, this study systematizes environmental management specialists capabilities and identifies governance mechanisms that address knowledge outsourcing tensions while advancing reductions in environmental footprints, in line with SDG 12. Practical implications The study provides SMEs with actionable insights for effective environmental management outsourcing and offers policymakers guidance on fostering specialized environmental management outsourcing to advance the green transformation of the manufacturing sector. Originality/value This study investigates the interactions among three core environmental management capabilities in enhancing SMEs' ecological learning capability and environmental performance. It addresses existing research gaps by introducing incentive alignment and business dynamism as moderators of environmental performance. Importantly, the study underscores the critical role of SMEs in achieving SDG 12 by reducing their environmental footprint.
Li et al. (Thu,) studied this question.