The present study aims to explain the mechanisms through which economic sustainability is achieved in the value chain of Iraqi petroleum products, by identifying and modelling the relationships among institutional, managerial, and environmental factors. In terms of purpose the research is applied, and in terms of nature it is descriptive–analytical with a mixed approach. In the first stage, drawing on an exploratory approach, qualitative data analysis, and a systematic review of the literature, a set of variables affecting sustainability was extracted and the research instrument was designed. In the quantitative stage, data were collected through a researcher-made questionnaire based on a five-point Likert scale from 600 managers and experts active in the value chain of Iraq’s oil industry. After data pre-processing and confirming the adequacy of the sample size, exploratory factor analysis was performed, which reduced 103 items to 26 latent variables and ultimately to 8 main constructs: human-capital capacity building, regulatory and governance framework, technological progress, commitment to strategic planning, social responsibility, resource efficiency, environmental performance, and economic sustainability. Subsequently, to validate the conceptual model and test the research hypotheses, partial-least-squares structural-equation modelling was applied using SmartPLS software. The results of the measurement model confirmed the reliability and the convergent and discriminant validity of the constructs. The findings of the structural model showed that environmental performance has a positive and significant effect on economic sustainability, and that this variable is significantly influenced by resource efficiency and the regulatory and governance framework, whereas the direct effects of variables such as human capital, technological progress, social responsibility, and commitment to strategic planning on environmental performance were not statistically significant. The coefficient of determination for environmental performance (0.542) and economic sustainability (0.277) indicates an acceptable explanatory power of the proposed model. Overall, the results show that, in Iraq’s oil industry, achieving economic sustainability depends more on governance effectiveness, genuine resource efficiency, and improved environmental performance than on symbolic managerial measures a finding that can serve as a basis for policymaking and strategic decision-making at both the firm and macro levels.