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Stakeholder pressure, green innovation, and performance in small and medium‐sized enterprises: The role of green dynamic capabilities

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  • Sanjay Kumar Singh
  • Manlio Del Giudice
  • Charbel Jose Chiappetta Jabbour
  • Hengky Latan
  • Amrik Singh Sohal

Abstract

This study examines direct and indirect effects among stakeholder pressure, green dynamic capabilities, green innovation, and performance of emerging market small and medium‐sized enterprises (SMEs). Using survey questionnaires, we collected multisource data from 248 SMEs in the manufacturing sector. We used the partial least squares (PLS) path modeling approach (PLS‐PM) to examine the hypotheses of the study. The study results indicate that stakeholder pressure influences green dynamic capability, green dynamic capability influences green innovation, and green innovation influences firm performance. Furthermore, results also suggest that green dynamic capability mediates the influence of stakeholder pressure on green innovation and green innovation mediates the impact of green dynamic capability on firm performance. The findings of the study suggest critical implications for both theory and practice.

Suggested Citation

  • Sanjay Kumar Singh & Manlio Del Giudice & Charbel Jose Chiappetta Jabbour & Hengky Latan & Amrik Singh Sohal, 2022. "Stakeholder pressure, green innovation, and performance in small and medium‐sized enterprises: The role of green dynamic capabilities," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 500-514, January.
    • Handle: RePEc:bla:bstrat:v:31:y:2022:i:1:p:500-514
    DOI: 10.1002/bse.2906
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    8. Alexandre Rodrigues da Silva & Claudia Brito Silva Cirani & Fernando Antonio Ribeiro Serra & Angélica Pigola & Priscila Rezende da Costa & Isabel Cristina Scafuto & Roberto Lima Ruas & Marcos Rogério , 2023. "Determining Factors on Green Innovation Adoption: An Empirical Study in Brazilian Agribusiness Firms," Sustainability, MDPI, vol. 15(7), pages 1-23, April.
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    14. Li, Kanyong, 2023. "Can resource endowment and industrial structure drive green innovation efficiency in the context of COP 26？," Resources Policy, Elsevier, vol. 82(C).
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    17. John Wiredu & Qian Yang & Agyemang Kwasi Sampene & Bright Akwasi Gyamfi & Simplice A. Asongu, 2023. "The effect of green supply chain management practices on corporate environmental performance. Does supply chain competitive advantage matter?," Working Papers 23/063, European Xtramile Centre of African Studies (EXCAS).
    18. Bai, Dongbei & Du, Lizhao & Xu, Yang & Abbas, Shujaat, 2023. "Climate policy uncertainty and corporate green innovation: Evidence from Chinese A-share listed industrial corporations," Energy Economics, Elsevier, vol. 127(PB).
    19. Denisa Bogdana Abrudan & Nosheen Rafi & Dana Codruta Daianu & Masood Nawaz Kalyar, 2022. "Linking green intellectual capital with green innovation: Examining the roles of green dynamic capabilities and 'motivation to achieve legitimacy'," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(7), pages 250-258.
    20. Johnson, William H.A. & Bicen, Pelin & Zhu, Zhen, 2023. "Being lean: Conceptualizing and operationalizing the Lean Innovation Capability (LIC) of innovative companies," Technovation, Elsevier, vol. 126(C).
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