Although the importance of environmental orientation has been recognized, how and under what conditions it influences green innovation is limited. To extend the research on green innovation, our research examines the impacts of two dimensions of environmental orientation on two types of green innovation, as well as the moderating role of political ties. Drawing upon stakeholder theory and resource-based view, we propose research hypotheses. We perform hierarchical regression analysis to validate the hypotheses that is based on survey data collected in 253 Chinese manufacturing companies. Our findings indicate that internal environmental orientation and external environmental orientation are positively linked with both green product innovation and green process innovation. The effect of internal environmental orientation on green process innovation is stronger than that of green product innovation. In addition, political ties strengthen the positive impacts of internal environmental orientation on green product innovation and green process innovation, while attenuating the positive impact of external environmental orientation on green process innovation. These findings contribute to theory and practice by enriching our understanding of how two dimensions of environmental orientation affect two types of green innovation.

Despite the increasing awareness of eco‐control systems (ECS), whether and how a firm's deployment of ECS affect carbon performance is not known. Drawing on organizational learning theory, this study investigates how a firm's implementation of ECS enhances carbon performance via low‐carbon supply chain collaboration, and examines the moderating effect of organizational unlearning. To verify these hypotheses, we conduct hierarchical regression analyses using survey data from 297 Chinese manufacturers. Our results indicate that both supplier and customer low‐carbon collaborations mediate the impact of ECS on carbon performance. In addition, organizational unlearning strengthens the impact of ECS on customer low‐carbon collaboration, but weakens the impact of ECS on supplier low‐carbon collaboration. This study extends the digital transition and sustainability literature by unpacking the “black box” of transforming ECS into carbon performance and considering the contingency role of organizational unlearning. Our findings provide managers with new digital technologies to improve low‐carbon supply chain management and guide governments to appropriately extend policies that accelerate the manufacturing industry's transition to sustainability.