Forging the Green Future: How Dynamic Technological Capabilities Drive the Smart–Green Synergy in Supply Chain Management

ABSTRACT

This study examines how dynamic technological capabilities (DTCs) enable manufacturing SMEs to develop Smart and Green SCM practices and thereby improve green performance. Drawing on the dynamic capabilities view, this study conceptualizes DTCs along three dimensions: technological sensing, technological learning, and technological integration. Using survey data from 264 export‐oriented manufacturing SMEs in China, the proposed model was tested with partial least squares structural equation modeling (PLS‐SEM). The results show that all three DTC dimensions significantly promote Smart SCM, while only technological learning capability directly enhances Green SCM. Smart SCM has positive effects on both Green SCM and green performance, and Green SCM further strengthens green performance. Additional indirect effect analysis further reveals that Smart SCM serves as a broad digital pathway through which DTCs improve green performance, whereas Green SCM mainly mediates the effect of technological learning capability. Moreover, the sequential pathway from DTCs to green performance through Smart SCM and Green SCM is significant for technological sensing and integration capabilities. This study extends the dynamic capabilities view by revealing differentiated smart and green transformation pathways and provides practical insights for SMEs pursuing coordinated digital and environmental transformation.