Journal of Global Economics, Management and Business Research

Digital transformation and intensifying global competition compel manufacturing companies to continuously innovate while maintaining operational sustainability. The manufacturing sector's transformation is accelerated by evolving market dynamics and international sustainability frameworks demanding integration of technological capabilities with sustainable operations and cost-effective production systems. This study aims to analyze how technology orientation, digital capability, and economic orientation collectively drive innovation performance through the mediation of sustainable product design in Indonesian manufacturing companies. Employing a quantitative approach with Partial Least Squares-Structural Equation Modeling methodology, data were collected from 159 respondents working across various manufacturing firms through structured questionnaires using a seven-point Likert scale. The analysis reveals that technology orientation significantly influences digital capability, economic orientation, sustainable product design, and innovation performance. Digital capability substantially enhances both sustainable product design and innovation performance. Economic orientation also contributes positively to sustainable product design and innovation performance. A unique finding indicates that sustainable product design does not directly affect innovation performance, suggesting the necessity for systemic integration with other organizational capabilities. The research model explains 85.2% of innovation performance variance, demonstrating remarkably robust predictive power. This study contributes theoretically by integrating multiple strategic orientations within a comprehensive framework and offers practical implications for manufacturing managers in designing sustainable and competitive innovation strategies.