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Green Innovation, Green Dynamic Capability, and Enterprise Performance: Evidence from Heavy Polluting Manufacturing Enterprises in China

Author

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  • Haiyan Li
  • Wei Zhang

Abstract

Green innovation is widely regarded as a beneficial strategy for manufacturing enterprises to accelerate green transformation. Drawing the natural resource-based view with dynamic capabilities, this study proposes a model linking green innovation, green dynamic capability, and firm performance. Using survey data from 236 heavy polluting manufacturing firms in China, this study investigates the impact of green innovation on firm performance. The results show that green innovation is positively correlated with both enterprise performance and green dynamic capability, whereas green dynamic capability also has a significant impact on enterprise performance. Furthermore, the survey found that the green resource integration ability, organizational learning capability, and environmental insight capability of green dynamic capability play a moderating effect on the relationship between green innovation and enterprise performance. Additionally, we provide useful enlightenment for policymakers and business managers to stimulate green innovation in enterprises. Our research not only assists managers to better grasp the effects of green innovation practices but also provides some important implications for policymakers.

Suggested Citation

  • Haiyan Li & Wei Zhang, 2022. "Green Innovation, Green Dynamic Capability, and Enterprise Performance: Evidence from Heavy Polluting Manufacturing Enterprises in China," Complexity, Hindawi, vol. 2022, pages 1-13, June.
    • Handle: RePEc:hin:complx:7755964
    DOI: 10.1155/2022/7755964
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    Cited by:

    1. Sikandar Rahman & Sheikh Adeel & Murad Ali & Saleh Bajaba & Hengky Latan, 2026. "Power of Green Capabilities and Artificial Intelligence (AI): Understanding How and When Green Innovation Promotes Sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 35(2), pages 2502-2525, February.
    2. Renpu Liu & Mengchen Xie & Yu Li, 2025. "How Does Digital Transformation Drive Green Innovation? The Key Roles of Green Dynamic Capabilities and Environmental Munificence," Sustainability, MDPI, vol. 17(19), pages 1-28, October.
    3. Sandeep Kumar Dey & Reshma Sandeep Kumar Dey & Sinh Duc Hoang & Jose Arturo Garza‐Reyes, 2025. "Unveiling Circular Economy Pathways Among Small and Medium Hotels Through a Hybrid Analytical Framework," Business Strategy and the Environment, Wiley Blackwell, vol. 34(8), pages 9545-9565, December.
    4. Liu, Minghao & Xu, Kun & Zhai, Lihong, 2024. "Bank-firm common ownership, green credit and enterprise green technology innovation: Evidence from Chinese credit markets," Energy Economics, Elsevier, vol. 140(C).
    5. Pham Quang Huy & Vu Kien Phuc, 2025. "Insight into how social media platforms in building relational social commerce capability for green entrepreneurial innovation," Future Business Journal, Springer, vol. 11(1), pages 1-32, December.
    6. Asier Baquero, 2025. "Leveraging Green Dynamic Capabilities and Institutional Support for Green Technological Innovation and Performance: Evidence From Spanish Manufacturing Firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(6), pages 8481-8498, November.
    7. José Rabal Conesa & Daniel Jiménez Jiménez & Micaela Martínez Costa, 2025. "Dynamic Knowledge Management Capabilities for Successful Product Eco‐Innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 34(6), pages 7349-7367, September.
    8. Liping Wang & Ru Li & Min Chen & Chuang Li, 2026. "Nonlinear Effects of Environmental Costs on Dual Performance of Enterprises and Credit Regulation Mechanism: A Dynamic Empirical Study Based on Chinese Heavily Polluting Enterprises," SAGE Open, , vol. 16(1), pages 21582440251, February.

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