Although previous research has explored the effect of strategic orientation (SO) on innovation and business performance, little attention has been paid to its effect on environmental innovation capability (EIC) and environmental sustainability performance. Drawing on the strategic marketing and dynamic capability theory, this study attempts to increase the understanding of how SO (i.e., customer orientation, competitor orientation, and technology orientation) influences the EIC, which in turn enhances supplier’s environmental sustainability performance in the context of buyer-supplier relationships. In addition, this study examines the impact of inter-functional coordination on SO and also explores the moderating role of buyers value added in the relationship between SO and EIC. Hierarchical regression analysis was performed to test hypotheses that are based on survey data collected in 127 Taiwanese information technology firms. The results show that customer orientation and technology orientation have a positive impact on the EIC, that buyers value added has a synergistic effect on the impact of competitor orientation on EIC, that inter-functional coordination has a positive impact on SO, and that EIC mediates the relationship between SO and environmental sustainability performance.

Environmental management studies have proposed that firms can achieve substantial cost advantages over competitors and enhance their competitive positions by implementing an environmental management system (EMS). This study further investigates strategic orientation (customer, competitor, and innovation orientation) and focuses on the effect of strategic orientation on EMSs and eco-innovation; it also examines the mediating role of EMSs in the relationship between strategic orientation and eco-innovation. Furthermore, this study investigates the moderating role of absorptive capacity in the relationship between strategic orientation and EMSs. Reliability and validity analyses of a sample of 142 respondents indicated that the study design was effective, consistent, and reliable. The findings indicate that (1) strategic orientation (competitor and innovation orientation) positively influences EMSs, (2) EMSs positively influence eco-innovation, (3) absorptive capacity-enhancing strategic orientation positively influences EMSs, and (4) EMS intermediary strategic orientation positively influences eco-innovation. This study contributes to the theoretical understanding of why some firms exhibit greater proactivity in EMSs than others do.