IDEAS home Printed from https://ideas.repec.org/a/wly/complx/v2022y2022i1n7755964.html

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

Author

Listed:
  • Haiyan Li

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, 2022. "Green Innovation, Green Dynamic Capability, and Enterprise Performance: Evidence from Heavy Polluting Manufacturing Enterprises in China," Complexity, John Wiley & Sons, vol. 2022(1).
    • Handle: RePEc:wly:complx:v:2022:y:2022:i:1:n:7755964
    DOI: 10.1155/2022/7755964
    as

    Download full text from publisher

    File URL: https://doi.org/10.1155/2022/7755964
    Download Restriction: no
    File URL: https://libkey.io/10.1155/2022/7755964?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Rosa Maria Dangelico & Devashish Pujari & Pierpaolo Pontrandolfo, 2017. "Green Product Innovation in Manufacturing Firms: A Sustainability‐Oriented Dynamic Capability Perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 26(4), pages 490-506, May.
    2. Yu-Shan Chen & Yu-Hsien Lin & Ching-Ying Lin & Chih-Wei Chang, 2015. "Enhancing Green Absorptive Capacity, Green Dynamic Capacities and Green Service Innovation to Improve Firm Performance: An Analysis of Structural Equation Modeling (SEM)," Sustainability, MDPI, vol. 7(11), pages 1-19, November.
    3. Yu-Shan Chen, 2008. "The Driver of Green Innovation and Green Image – Green Core Competence," Journal of Business Ethics, Springer, vol. 81(3), pages 531-543, September.
    4. Yu-Shan Chen & Shyh-Bao Lai & Chao-Tung Wen, 2006. "The Influence of Green Innovation Performance on Corporate Advantage in Taiwan," Journal of Business Ethics, Springer, vol. 67(4), pages 331-339, September.
    5. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    6. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    7. Yu-Hsien Lin & Yu-Shan Chen, 2017. "Determinants of green competitive advantage: the roles of green knowledge sharing, green dynamic capabilities, and green service innovation," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(4), pages 1663-1685, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lu Qiu & Xiaowen Jie & Yanan Wang & Minjuan Zhao, 2020. "Green product innovation, green dynamic capability, and competitive advantage: Evidence from Chinese manufacturing enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 146-165, January.
    2. Zhang Xiaoyi & Hailan Yang & Nilesh Kumar & Maqsood H. Bhutto & Wang Kun & Tianyang Hu, 2023. "Assessing Chinese Textile and Apparel Industry Business Sustainability: The Role of Organization Green Culture, Green Dynamic Capabilities, and Green Innovation in Relation to Environmental Orientation and Business Sustainability," Sustainability, MDPI, vol. 15(11), pages 1-21, May.
    3. Xuan Hung Nguyen & Khanh Linh Nguyen & Thi Van Ha Nguyen & Thi Thanh Huyen Nguyen & Van Loi Ta, 2023. "The Impact of Green Organizational Capabilities on Competitive Advantage of Construction Enterprises in Vietnam: The Mediating Role of Green Innovation," Sustainability, MDPI, vol. 15(16), pages 1-16, August.
    4. Ching‐Hsun Chang, 2018. "How to Enhance Green Service and Green Product Innovation Performance? The Roles of Inward and Outward Capabilities," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(4), pages 411-425, July.
    5. Ying Guo, 2023. "External Knowledge Acquisition and Green Innovation in Chinese Firms: Unveiling the Impact of Green Dynamic Capabilities," SAGE Open, , vol. 13(3), pages 21582440231, July.
    6. Lee, Min-Jae & Kim, Yanghee & Roh, Taewoo, 2024. "Exploring the role of digital servitization for green innovation: Absorptive capacity, transformative capacity, and environmental strategy," Technological Forecasting and Social Change, Elsevier, vol. 207(C).
    7. Hongyi Mao & Jiang Lu, 2023. "Big Data Management Capabilities and Green Innovation: A Dynamic Capabilities View," Sustainability, MDPI, vol. 15(19), pages 1-27, October.
    8. Yuan, Baolong & Cao, Xueyun, 2022. "Do corporate social responsibility practices contribute to green innovation? The mediating role of green dynamic capability," Technology in Society, Elsevier, vol. 68(C).
    9. Achi, Awele & Adeola, Ogechi & Achi, Francis Chukwuedo, 2022. "CSR and green process innovation as antecedents of micro, small, and medium enterprise performance: Moderating role of perceived environmental volatility," Journal of Business Research, Elsevier, vol. 139(C), pages 771-781.
    10. Yali Zhang & Jun Sun & Zhaojun Yang & Shurong Li, 2018. "Organizational Learning and Green Innovation: Does Environmental Proactivity Matter?," Sustainability, MDPI, vol. 10(10), pages 1-14, October.
    11. Ali Kemal Çeli̇k & Tayfun Yildiz & Zafer Aykanat & Siamak Kazemzadeh, 2025. "Green Innovation Adoption in Turkish and Iranian SMEs: The Effect of Dynamic Capabilities and the Mediating Role of Absorptive Capacity," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 1824-1859, March.
    12. Tze San Ong & Ah Suat Lee & Boon Heng Teh & Hussain Bakhsh Magsi, 2019. "Environmental Innovation, Environmental Performance and Financial Performance: Evidence from Malaysian Environmental Proactive Firms," Sustainability, MDPI, vol. 11(12), pages 1-18, June.
    13. Arnaldo Coelho & Jorge Ferreira & Catarina Proença, 2024. "The impact of green entrepreneurial orientation on sustainability performance through the effects of green product and process innovation: The moderating role of ambidexterity," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3184-3202, May.
    14. Magdalena Pichlak, 2021. "The Drivers of Technological Eco-Innovation—Dynamic Capabilities and Leadership," Sustainability, MDPI, vol. 13(10), pages 1-17, May.
    15. Albort-Morant, Gema & Leal-Millán, Antonio & Cepeda-Carrión, Gabriel, 2016. "The antecedents of green innovation performance: A model of learning and capabilities," Journal of Business Research, Elsevier, vol. 69(11), pages 4912-4917.
    16. Chulin Pan & Yufeng Jiang & Mingliang Wang & Shuang Xu & Ming Xu & Yixin Dong, 2021. "How Can Agricultural Corporate Build Sustainable Competitive Advantage through Green Intellectual Capital? A New Environmental Management Approach to Green Agriculture," IJERPH, MDPI, vol. 18(15), pages 1-26, July.
    17. Zahid Yousaf & Magdalena Radulescu & Crenguta Sinisi & Abdelmohsen A. Nassani & Mohamed Haffar, 2022. "How Do Firms Achieve Green Innovation? Investigating the Influential Factors among the Energy Sector," Energies, MDPI, vol. 15(7), pages 1-14, March.
    18. Jingxiao Zhang & You Ouyang & Simon P. Philbin & Xiaojing Zhao & Pablo Ballesteros‐Pérez & Hui Li, 2020. "Green dynamic capability of construction enterprises: Role of the business model and green production," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 2920-2940, November.
    19. Jing-Wen Huang & Yong-Hui Li, 2017. "Green Innovation and Performance: The View of Organizational Capability and Social Reciprocity," Journal of Business Ethics, Springer, vol. 145(2), pages 309-324, October.
    20. Gema Albort-Morant & Jörg Henseler & Gabriel Cepeda-Carrión & Antonio L. Leal-Rodríguez, 2018. "Potential and Realized Absorptive Capacity as Complementary Drivers of Green Product and Process Innovation Performance," Sustainability, MDPI, vol. 10(2), pages 1-20, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:complx:v:2022:y:2022:i:1:n:7755964. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://onlinelibrary.wiley.com/journal/8503 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.