Assessing the role of organizational strategic factors in stimulating green innovation performance: moderating effects of green absorptive capacity

Abstract

PurposeThis study investigates the interaction between organizational strategic factors (Leadership and management support [LMS] and green learning orientation [GLO]) and green innovation performance (GIP), through the lens of resource-based view (RBV) theory. It examines both the direct and indirect impacts of these factors on GIP via green knowledge management (GKM), and explores how green absorptive capacity (GAC) enhances these relationships.Design/methodology/approachUsing Partial least squares structural equation modeling (PLS-SEM) and moderated mediation analysis, we analyzed responses from 419 individuals across 154 manufacturing firms in Pakistan to understand these dynamics.FindingsResults show that LMS and GLO significantly affect GIP, both directly and indirectly, through GKM. Furthermore, GAC intensifies the impact of GLO on GKM and the influence of GKM on GIP, indicating a moderated mediation effect.Practical implicationsHighlighting the importance of LMS, GLO, GKM, and GAC, the study suggests that focusing on these areas can help firms align their strategies with sustainability goals, enhancing their GIP. These insights can guide policymakers in creating supportive strategies for businesses to improve their GAC, facilitating better knowledge adoption and application.Originality/valueThe research contributes to the RBV theory by clarifying the role of strategic organizational factors in enhancing GIP within manufacturing firms, offering a clearer path to achieving sustainability goals.