The increased attention to the safety of the environment and reduction of industrial emissions has encouraged the adoption of green innovation especially in the manufacturing sector. The adoption of eco-friendly innovations in manufacturing SMEs is relatively high in developed countries as compared to developing countries like Malaysia. Therefore, there was a need to study external market pressures, like customer green demand and green competition, which influence manufacturing SMEs in Malaysia to adopt green innovation. The data was collected from 183 manufacturing SMEs located in the top five states/federal territory in Malaysia. The collected data was then analyzed using the PLS-SEM in SmartPLS 4. The results show that customer green demand positively influences green innovation adoption in Malaysian manufacturing SMEs. Similarly, green competition has a positive impact on green innovation adoption. Lastly, big data analytic capability moderated the relationship between customer green demand and green innovation adoption, and green competition and green innovation adoption. The findings of this study provide valuable insights for manufacturing SMEs aiming to enhance their sustainability practices. Moreover, it will also help future researchers to explore other perspectives on green innovation adoption.