This study examines the complex interplay between technological innovation, organizational factors, environmental considerations, green enabling practices, and sustainable performance within 418 agriculture SMEs in Ghana. Using Partial Least Squares Structural Equation Modelling (PLS SEM), it investigates how green innovation practices enhance the impact of technological innovation on sustainable performance in the face of the current global climate crisis.
Findings indicate a significant positive correlation between technological innovation and SMEs' sustainable performance, with green innovation practices notably amplifying this relationship. The study emphasizes the crucial role of Technology Organisation Environment (TOE) factors in fostering green practices such as green training and performance appraisal, thereby contributing to improved sustainable performance outcomes.
Additionally, the research explores moderating effects to understand the nuanced relationships between predictor variables and their influence on sustainable performance. Notable moderating effects underscore the importance of considering various factors' interplay in designing sustainability initiatives within SMEs. Leveraging top management support for green initiatives and responding to external pressures for sustainability emerge as mechanisms that enhance the positive impacts of organizational practices and technological advancements on sustainable performance outcomes.
Furthermore, the study advocates for SMEs to prioritize internal technological and organizational factors while fostering an environmentally conscious culture to incentivize stakeholders towards a more favourable environmental stance. By elucidating the mechanisms through which technological innovation and green practices shape sustainable performance, this research offers practical insights for SMEs aiming to enhance their long-term viability amidst global environmental challenges. Lastly, it emphasizes the importance of integrating theoretical frameworks and employing advanced analytical techniques to address contemporary sustainability concerns within SMEs.