Determinants of corporate green innovation? A configuration analysis based on the TOE framework

Abstract

ABSTRACT Green innovation (GI) is pivotal for enterprises aiming at green development. However, there is a lack of comprehensive research on the configurations that lead to high-level GI, especially considering the diversity among firms. Leveraging the Technology-Organization-Environment (TOE) framework, this study employs fuzzy-set Qualitative Comparative Analysis (fsQCA) on data from 1,293 listed Chinese enterprises spanning 2010–2021 to uncover the intricate paths towards achieving substantial GI. Our findings reveal distinct pathways for high-tech and non-high-tech enterprises, elucidating the nuanced interplay between internal capabilities and external incentives. Specifically, we identify five configurations for high-level GI in high-tech enterprises, epitomised by a ‘dual-wheel drive’ of government support and digital transformation underpinned by signal theory. In contrast, two configurations are discernible for non-high-tech enterprises, characterised by a synergistic ‘government and senior executive cooperation’ model grounded in resource-based theory. These insights culminate in two propositions regarding GI configuration, advocating for an outcome equivalence perspective. This research represents a pioneering exploration that connects firm heterogeneity with the configuration of internal and external conditions through lenses of ‘structure’ and ‘collaboration,’ offering novel pathways for green innovation across diverse enterprise landscapes.