<![CDATA[This study examines the effects of green supply chain management and green dynamic capability on business sustainability through green innovation. It contributes by integrating the resource-based view and dynamic capability theory to explain how green innovation converts organizational resources and capabilities into sustainable outcomes in MSMEs. Using a quantitative design, data were collected from 161 batik MSME owners in Yogyakarta, Indonesia through purposive sampling and analyzed using PLS-SEM. The results show that green supply chain management does not directly affect business sustainability, whereas green dynamic capability has a significant positive effect. Both green supply chain management and green dynamic capability significantly promote green innovation, which subsequently improves business sustainability. Green innovation fully mediates the effect of green supply chain management and partially mediates the effect of green dynamic capability on business sustainability. Managers should strengthen green innovation capabilities to translate environmental practices and adaptive capabilities into sustainable competitive advantage.]]>
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