This study, grounded in the Natural Resource-Based View (NRBV), explores how Green Ambidextrous Leadership (GAL) influences the Environmental Performance (EP) of manufacturing Small and Medium Enterprises (SMEs) in Pakistan. It particularly examines the mediating role of Green Absorptive Capacity (GAC) and the moderating role of Green Resource Orchestration Capabilities (GROC) between GAC and EP. Using a simple random sampling method, data were collected through 376 valid responses from managers and owners of manufacturing SMEs. The hypotheses were analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM). Results demonstrate that GAL significantly enhances both GAC and EP, with GAC acting as a mediator between leadership and environmental outcomes. Furthermore, GROC strengthens the link between GAC and EP, facilitating the transformation of green knowledge into improved EP. The findings expand NRBV literature by providing empirical insights into the interplay among leadership, absorptive capacity, and resource orchestration in developing internal green capabilities within emerging economies. The study contributes theoretically to sustainability research and offers practical implications for SME managers and policymakers, emphasizing the importance of fostering internal organizational capabilities and green leadership to achieve superior EP.
Siddqiue et al. (2026) studied this question.