When a Green Strategy Alone Is Not Enough: The Enabling Roles of Green Absorptive Capacity and Digital Innovation in Sustaining Agility Amid Technological Change

ABSTRACT

Although growing literature is showing the influence of green‐oriented strategies of firms on their organizational agility in uncertain times, there is still a lack of understanding of how this relationship unfolds through specific resource and capability‐building mechanisms. Grounded in the natural resource‐based view and dynamic capabilities perspective, this study explores the influence of green absorptive capacity and digital innovation mechanisms on the relationship between green strategic orientation of firms and their organizational agility in technological turbulent times. A moderated mediation model was tested using partial least squares–structural equation modeling (PLS‐SEM) with survey data from 157 firms coming from Colombia, a country that is recognized for its vast biodiversity reserves. Results show that green strategic orientation is indirectly associated with organizational agility through green absorptive capacity and digital innovation. Furthermore, technological turbulence positively moderates the relationships between green strategic orientation and green absorptive capacity and between digital innovation and organizational agility.