<p>With the advancement of global sustainable development goals, the application of green innovation in retail manufacturing has become increasingly important. This paper, based on resource dependence theory and organizational leadership theory, employs Structural Equation Modeling (SEM) and Artificial Neural Networks (ANN) methods. Utilizing survey data from 212 retail manufacturing enterprises in China, it explores the decision-making mechanisms of green innovation and their driving factors. Dynamic capabilities theory provides a framework to understand how firms enhance their innovation and adaptability to respond to rapidly changing market and technological environments, while stakeholder theory emphasizes how firms balance and coordinate green innovation decisions under the influence of multiple stakeholders. The research results indicate that green innovation decisions in firms are influenced by factors such as senior leadership support, resource allocation capacity, external policies, and market conditions. Additionally, firms' dynamic capabilities and interactions with stakeholders play a crucial role in the implementation of green innovation. This study not only provides theoretical support for advancing green innovation and achieving sustainable transformation in retail manufacturing but also offers practical guidance for business decision-makers and policymakers. The goal is to optimize decision-making mechanisms to enhance firms' green innovation capabilities and promote sustainable development.</p>