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Abstract China's manufacturing industry environmental regulations portray a strategic change towards sustainable development. The study examines how green business strategies and competencies enhance green innovation for manufacturing firm performance. The study approach included surveying senior managers from Chinese manufacturing firms. The hypotheses were tested running partial least squares structural equation modeling using 459 firms. The results reveal the complex relationships between these factors, showing how value co‐creation and absorptive ability generate innovation and business performance through green strategies and capabilities. Furthermore, green value co‐creation enhances a firm's green innovation and helps to achieve firm performance. This study contributes to the corpus of knowledge on sustainable manufacturing techniques and helps firms succeed in an environmentally conscious society.
Ashraf et al. (Thu,) studied this question.