Bridging external capabilities and internal strategy: a resource dependence and dynamic capabilities perspective on green patent value creation

PurposeThe purpose of this article is to investigate the influences of green product innovation and product process innovation on two constructs of green innovation casual chain: green product competitive advantage and green new product success. The impacts of green product competitive advantage as a partial mediator in the link between green product/process innovations and green new product success are also examined.Design/methodology/approachA model with four constructs is presented and tested on a sample of 203 R&D project leaders of electronics firms operating in China using quantitative methods.FindingsIt is found that green product and process innovations are positively associated with green product competitive advantage and green new product success, and green product competitive advantage partially mediates the relationships between green product/process innovations and green new product success. It is also found that green product innovation exerts a stronger influence on the consequential constructs than green process innovation.Practical implicationsThe positive causalities among the constructs suggest that green innovation is more than a branding support. It pays to pursue green innovation. Green product innovation is demonstrated to have a positively stronger influence on both green product competitive advantage and green new product success than green process innovation. The difference in impact signals that when operating under limited resources, green product innovation should be pursued first.Originality/valueThe article addresses the gap in green innovation theory concerning the associations among the key constructs of green innovation causal chain. It is the first green innovation research ever conducted in the e‐industry in China. The causalities identified can be leveraged to improve Chinese e‐industry players’ innovative and competitive capabilities and to encourage them to stay proactive in addressing challenges arising from environmental issues.

Despite environmental sustainability being identified as one of the key drivers of innovation, extant literature lacks a theoretically sound and empirically testable framework that can provide specific insights into green product innovation from a capability perspective. This study develops a theoretical framework from a sustainability‐oriented dynamic capability (SODC) perspective. We conceive SODCs as consisting of three underlying processes (external resource integration, internal resource integration, and resource building and reconfiguration) that influence the change/renewal of sustainability‐oriented ordinary capabilities (SOOCs) (green innovation capability and eco‐design capability). This study answers two key questions: which SODCs are needed to develop green innovation and eco‐design capabilities? Which of these capabilities lead to better market performance of green products? We test a structural model linking SODCs to market performance in 189 Italian manufacturing firms. First, we find that the nature of the SODC–performance link (direct or indirect) depends on the SODC type. Specifically, resource building and reconfiguration is the only SODC with a direct effect on market performance. Second, all three types of SODC affect the eco‐design capability, which mediates the link between SODCs and market performance. Third, we find that external resource integration is the only SODC affecting the green innovation capability, which mediates the link between external resource integration and market performance. Resource building and reconfiguration is the SODC with the overall (direct and indirect) highest impact on market performance. This study, among the first to consider capabilities for green product innovation under a dynamic capability perspective, provides implications for scholars, managers and policy makers. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

R&D and environmentally induced innovation: Does financial constraint play a facilitating role?

The development of innovative green products that can compete in unpredictable markets is a challenge for manufacturing firms. Hence, firms need to reconfigure their strategies by considering and strengthening the appropriate set of internal capabilities to achieve effective green product development. Therefore the initiatives implemented by firms in relation to their green practices and green innovation are attracting increasing scholarly attention. However, thus far only a few studies have explicitly explored the relationship between the proactive capabilities of manufacturing firms in the context of green product innovation. Thus, this study investigates the environmental proactivity (EP) and strategic flexibility (SF) of firms, and how these proactive capabilities affect green product innovation (GPI). In addition, it explores the role of GPI in enhancing product competitive advantage (PCA). The data for this study was obtained from 157 respondents representing manufacturing firms in Malaysia. Structural equation modelling was used for the statistical analysis. The results showed that SF partially mediates the relationship between EP and GPI, which indicates that SF facilitates GPI implementation. The results also revealed that GPI acts as a full mediator between SF and PCA, proving that GPI is the crucial factor that can translate SF into competitive advantage. Thus, based on the dynamic capabilities perspective, this study offers insights into the importance of flexibility and innovation in the context of green manufacturing as a means to enhance green product features and remain competitive in the market.

Accelerated green patent examination and innovation benefits: An analysis of private economic value and public environmental benefits

Are green patents granted to family firms perceived more favorably by the market than those granted to non-family firms? Using a sample of 8918 green patents granted to family and non-family firms between 2014 and 2018, our study shows that it depends on the attributes of the green patent. Integrating the green innovation and family firm literatures with signaling theory, we develop a theoretical framework that highlights the need for family firms to balance their pursuit of green innovation with signals of innovation stability and due diligence so as to gain the greatest market value from their green patents. In contrast, we theorize that green patents offer nonfamily firms the greatest gain in market value when they signal innovation radicalness and newness. While our results show that the stock market reaction does not vary significantly between family and non-family firms, when we consider the attributes of green patents, we find that compared to nonfamily firms, family firms with longer green patent grant lags realize a more positive market reaction whereas those with higher patent radicalness experience a more negative market reaction. As such, our study suggests that the types of green patents that garner the greatest market value differ for family and nonfamily firms. The findings are robust to alternate family firm definitions, and additional robustness checks.

Synthesizing insights from a dynamic capability perspective and social network theory, this study identifies the factors influencing green innovation and examines the relationships between influencing factors, green innovation, and performance. This study uses structural equation modeling to test the research hypotheses. The results indicate that dynamic capability, coordination capability, and social reciprocity are significant drivers of green innovation, including green product innovation and green process innovation. Green product and process innovation have positive effects on environmental performance and organizational performance. These findings are relevant to firms in quest of green management and innovation.

Green innovation and corporate financial performance: Insights from operating risks

This study explores how green innovation influences corporate financing among firms in BRICS economies, with a focus on Indonesia. Using panel data from listed Indonesian companies between 2010 and 2022, we investigate the effects of green process innovation, environmental R&D, and green patents on both debt and equity financing. Employing System GMM, the results show that all three types of green innovation significantly and positively affect firms’ access to capital. Green patents have the strongest impact on equity financing, while green processes and R&D contribute to improved debt financing conditions. Control variables such as firm size, asset tangibility, and liquidity also play important roles. The findings suggest that green innovation is not just an environmental commitment but a financial strategy that strengthens capital access and investor confidence. This has implications for both policy and corporate strategy, urging stakeholders to integrate green innovation as a core financial asset.

The primary objective of this study is to enrich students’ learning experiences by integrating “Experiential Learning Methods” with “Green Patent Strategies”. This study categorizes experiential learning into four distinct modules, each systematically analyzed with the inclusion of four variables. These modules comprise Module 1: Reflective Observation, focusing on the “Corporate Sustainability Policy” variable; Module 2: Abstract Conceptualization, centering on the “Business Model Analysis” variable; Module 3: Active Experimentation, emphasizing the “Patent Strategy Layout” variable; and Module 4: Concrete Experience, delving into the “Case Analysis” variable. Within the “Patent Strategy Layout” module, additional depth is provided through subtopics such as “Green Patents”, “Keywords for Patent Application Writing”, “Zero-Carbon Patent Search Technology”, and “Enterprise Detection and Operation Analysis”, contributing to the thoroughness of the research analysis. The survey results indicate that students have attained a lucid understanding of sustainability-related subjects, including “Business Model Analysis”, “Corporate Sustainability Policy”, and “Patent Strategy Deployment”. Practical exercises have further elevated their comprehension of green patent strategies. The overarching goal of this study is to stimulate inspiration for future curriculum designs that seamlessly integrate sustainability elements, fostering interdisciplinary learning opportunities for students within the framework of sustainable education.

Sustainability is one of the fastest-growing research areas globally. Irrespective of industry and economic activity, it is the need of the day. This study examines the impact of green process innovation and green production on sustainability in Pakistan and India’s cement and plastic manufacturing industries. The study also addresses the moderating role of environmental awareness, which increases the effect of green productivity and green innovation towards sustainability. The research is based on a quantitative approach to addressing the issue in question. Primary data were collected via a closed-ended questionnaire from 657 employees of Pakistan and India’s plastic and cement manufacturing industries, and were analyzed via partial least square structural equation modeling via SmartPLS. The findings show that green productivity and green process innovation have a significant impact on sustainability, while environmental awareness also plays a significant role in sustainable practices in the cement and plastic manufacturing industries of Pakistan and India. The results are helpful for policymakers, industries, and other governmental and non-governmental organizations to ensure sustainability through green process innovation, green productivity, and environmental awareness.

Factors affecting green innovation: An analysis of patent and regional heterogeneity

Green technology innovation is essential to promoting not only the construction of ecological civilization but also the fundamental means of achieving sustainable development. Taking research and development (R&D) investment, CO2 emissions, and other related factors into account, this study constructed an extended logarithmic mean Divisia index (LMDI) decomposition model for the change in the number of green technology patent applications to quantify the contribution of each driving factor based on green patent applications data in China from 2000 to 2017. The results indicated that economic scale, R&D efficiency, R&D reaction, and green patent share play positive roles in promoting green patent applications in China, among which R&D efficiency is the most significant contributor. By contrast, carbon intensity plays a dampening role. The conclusions of this study could provide a theoretical foundation for China to formulate targeted green technology innovation management policies, promotion measures, and related R&D strategies.

Carbon emission trading scheme (ETS) policy is a quota-based market-motivated environmental regulation policy that by transforming environmental responsibility of enterprises into self-consciousness behavior induces green innovation behavior in enterprises and influences the level of regional green innovation. Based on panel data on green patents in 30 Chinese provinces from 2010 to 2019, the paper uses six Chinese pilot provinces for ETS as the treatment group to investigate the induced effects of Chinese ETS policy on the quantity and quality of green technology innovation using difference in difference model and analyzes the effects of Chinese ETS policy on green technology innovation in different pilot regions using a synthetic control method. The findings indicate that (1) compared with non-pilot areas, the carbon emission trading policies in pilot areas can induce green technology innovation activities. (2) In all pilot regions, ETS policies significantly promoted the quantity and quality of green technology innovation, but the quantity promotion effect was significantly better than the quality promotion effect, and the low-quality promotion effect was better than the high-quality promotion effect. (3) In terms of individual pilot region, ETS policies in Guangdong, Hubei and Tianjin significantly promoted the quantity of green technology innovation and low-quality green technology innovation, but significantly inhibited or suppressed high-quality green technology innovation in a short term. This paper not only enriches the research on environmental equity trading policies and green technology innovation theoretically, but also provides empirical evidence for the effectiveness of carbon emission trading schemes pilots program in China.

Sustainable practices through green innovation have become key while the organization aims to achieve COP26 (Conference of the Parties, 26th Summit) targets. This study examined the relationship between management environmental concern, green process innovation, green product innovation and green performance in China’s hotel industry. It further examines the mediating role of green products and process innovation between management environmental concerns and green performance. Researchers utilized Structural Equation Modelling using Partial Least Squares version 4 to test theory and path analysis. Findings suggest that management environmental concern significantly influences the green process and product innovation. For indirect effects, green product and process innovation mediate the relationship between management environmental concerns and green performance. This study contributes to the growing body of work on green innovation in several important ways addressing the gap in the literature and examining the causes of green innovation from the point of view of green performance in the hotel industry’s perspective.