Reinforcing green business strategies with Industry 4.0 and governance towards sustainability: Natural‐resource‐based view and dynamic capability

Fadi Alkaraan, Mahmoud Elmarzouky, Khaled Hussainey, V. G. Venkatesh, Yangyan Shi*, Nadia Gulko

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


The study explores the influence of contextual factors surrounding production planning and green strategic investment decision‐making practices (GSIDMP) in UK companies. We utilize a mixed‐method approach as a research methodology to study the current trend of production planning and GSIDMP. This study's conceptual model is rooted conspicuously in the resource‐based theory (RBT), natural‐resource‐based view, and dynamic capabilities. We empirically examine the nexus among GSIDMP, technological innovation, dynamic capability, and companies' performance. Our study was based on a sample selected from UK‐listed companies, FTSE ALL‐Share Index for the period (2012–2021). Also, the study utilizes data from the UK Innovation Survey (2018–2020) and corporate disclosure through companies' annual reports as a complementary approach for data collection. Findings of this study explore the interdependencies among company dynamic capability, advanced technological innovation and governance mechanisms, and their mediation influence on the nexus between GSIDMP and companies' performance. This study sheds lights on current business innovation strategies. Findings reveal how current practices of production planning and GSIDM in large UK companies shaped by boardrooms absorptive and adaptive capabilities, knowledge‐generating and knowledge‐collaboration capabilities, technological adoption, and corporate governance mechanisms. This study offers insight regarding boardrooms proactive engagement in exploration and exploitation activities to strengthen ambidexterity through various innovation trajectories associated with green production and GSIDMP towards sustainability. We provide managerial implications for decision‐makers, regulators, investors, scholars, and other stakeholders.
Original languageEnglish
Pages (from-to)3588-3606
Number of pages19
JournalBusiness Strategy and the Environment
Issue number4
Early online date11 Jan 2024
Publication statusPublished - May 2024

Bibliographical note

© 2024 The Authors. Business Strategy and The Environment published by ERP Environment and John Wiley & Sons Ltd.

This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made.


  • sustainability
  • governance
  • green production
  • natural resource based view
  • dynamic capabilities
  • sustainable business strategy
  • ESG performance
  • companies performance
  • technological adoption
  • green strategic investment decisions
  • green innovation strategies


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