Uncertainties, ranging from environmental threats and health epidemics to political instability, financial crises, and technological advancements, can significantly alter business environments. When such changes occur, service organizations face various difficulties that hinder their sustainable organizational performance. Consequently, the study empirically examines the influences of technological capability (i.e., digitalization, big data analytics, and a data-driven culture) on service firms’ sustainable organizational performance (SOP), and in turn, the impact of SOP on organizational resilience (OR) via the moderation of innovation leadership. Drawing on the theoretical frameworks of the dynamic capability view (DCV) and flexible systems management (FSM), the proposed hypotheses were tested via survey data collected from 297 senior-level professionals in service organizations. The results of partial least squares structural equation modeling (PLS-SEM), necessary condition analysis (NCA), and fuzzy-set qualitative comparative analysis (fsQCA) revealed that technological capability significantly influences sustainable organizational performance, which in turn contributes to organizational resilience, particularly when innovation leadership is present. Thus, technological capability, as the foundation of a flexible system, enables rapid resource reconfiguration, real-time data-driven decision-making, and scalable operations. In doing so, it directly enhances sustainable organizational performance and indirectly supports organizational resilience, which is reinforced by innovation leadership. These insights advocate that service firms leverage technological capability and innovation-driven leadership to ensure sustainability and resilience in complex and uncertain environments while maintaining operational and managerial flexibility.

The accelerating growth of electric mobility has intensified the need for cleaner and more resource-efficient production systems within lithium-ion battery supply chains. Ensuring sustainability and cost efficiency in these systems is essential to reducing material waste, supply dependency, and environmental pressures across the value chain. This study examines how circular economy practices within the European Union, a region recognized for its leadership in policy innovation and battery manufacturing, shape the cost performance of lithium-ion battery systems. Drawing on longitudinal evidence that captures more than a decade of industrial and regulatory transformation, the analysis applies an integrated framework to explore the interactions among policy measures, technological capabilities, and logistics coordination. To empirically examine these relationships, the study employs a panel dataset covering the European lithium-ion battery supply chain from 2010 to 2023. The analysis combines panel ARDL and nonlinear ARDL (NARDL) models with Necessary Condition Analysis (NCA) and fuzzy-set Qualitative Comparative Analysis (fsQCA) to capture both dynamic effects and configurational pathways influencing cost efficiency in circular battery supply chains. The results show that cost efficiency emerges from the combined influence of recycling performance, government incentives, and coordinated reverse logistics rather than from any single intervention. Strong policy support and efficient recycling infrastructure lead to measurable reductions in production costs and environmental burdens, while fragmented logistics continue to constrain progress. The study offers strategic guidance for policymakers and industry leaders on aligning circular resource recovery with cleaner production objectives, advancing the transition toward low carbon and economically competitive technologies. Graphical abstract