Green ambidextrous leadership and green innovation initiatives as drivers of sustainability performance: evidence from ISO14001-certified manufacturing firms in Malaysia

Purpose This study, employing ambidexterity theory, resource-based view (RBV) theory, and dynamic capabilities perspective, aims to investigate the impact of green ambidextrous leadership (GAL) on sustainability performance in ISO 14001-certified manufacturing companies in Malaysia. This adoption is viewed as a crucial step towards achieving green innovation initiatives (GII) and sustainable performance (SP) in ISO 14001-certified manufacturing companies in Malaysia. Design/methodology/approach The research employed a quantitative research design, with the population comprising 488 owner-managers of ISO 14001-certified manufacturing companies in Malaysia. This study adopted a multistage sampling technique and analyzed 287 questionnaires. Using the Statistical Package for the Social Sciences (SPSS) and Partial Least Squares Structural Equation Modelling, exploratory and confirmatory factor analysis, path analysis, and mediation and moderation analysis were conducted on the data. Findings This study demonstrates that green ambidextrous leadership can significantly enhance SP, a crucial finding for current ISO-14001 certified manufacturing companies in Malaysia. This research explores governance ambidexterity as a boundary condition for this relationship. Additionally, this study contributes to the literature on green strategies in ISO 14001-certified manufacturing companies in Malaysia by providing practical significance to policymakers who wish to implement green strategies to enhance overall sustainable performance. Research limitations/implications This study is limited to Malaysian manufacturing companies that are ISO 14001 certified, with data collected from a cross-sectional design and a sample size of 488 firms obtained solely from the FMM Directory. Practical implications The findings suggest that Malaysian ISO 14001-certified manufacturing companies should invest in the enhancement of green ambidextrous leadership to reinforce green innovation initiatives that can be practically implemented and be consistent with the sustainability goals. Investing in leadership skills that create a balance between environmental exploration and operational exploitation, companies can maximize the effectiveness of green innovation processes and can increase sustainability performance beyond compliance-driven practices. Social implications This study outlines a clear and actionable pathway for ISO-14001-certified manufacturing companies in Malaysia to achieve sector sustainability ( Economic, social and environment) performance, thereby enlightening the reader on the potential of GAL and GII in ISO-14001-certified manufacturing companies. Originality/value Three major contributions are provided through this study. First, it combines the ambidexterity and resource-based view theory with the dynamic capabilities perspective in pointing out how the green innovation initiatives mediate the association between green ambidextrous leadership and sustainability performance and governance ambidexterity as a boundary condition. Second, it offers empirical findings regarding manufacturers (certified according to ISO 14001) in Malaysia, which is an under-researched but policy-sensitive setting. Third, the study contributes to the research by describing a leadership-innovation-governance route where certified manufacturers can better transform environmental initiatives into sustainability performance outcomes.