Smart and green technology capabilities shape environmental sustainability through resource efficiency under IT governance

Abstract

This study examines how the alignment between technological and organizational subsystems contributes to environmental sustainability through the theoretical lens of Socio-Technical Systems (STS) Theory. Specifically, it investigates the roles of smart technology integration and green technology development capability as key technological subsystems, the mediating mechanism of resource efficiency, and the moderating influence of IT governance on sustainability outcomes. Data were collected from 324 municipal officers in Palestine using a purposive sampling technique and analyzed using PLS-SEM. The empirical findings demonstrate that both smart technology integration and green technology development capability exert significant positive effects on environmental sustainability, both directly and indirectly through enhanced resource efficiency. The findings further reveal that IT governance significantly strengthens the effects of both green technology development capability and smart technology integration on resource efficiency. These findings suggest that organizations should adopt governance frameworks that provide strategic oversight while preserving the flexibility necessary for efficient resource utilization and continuous technological innovation. The study contributes to the literature on smart cities and sustainability by offering empirical evidence from Palestinian municipalities, a context not well researched in the literature. The results provide valuable input to municipal policy and administration on how to maximize smart technology integration and IT governance to improve resource efficiency and environmental sustainability in resource-poor urban areas. It also provides empirical evidence from developing countries, which can help policymakers and municipal managers use smart and green technologies for sustainable development.