Does second-order social capital matter to green innovation? The moderating role of governance ambidexterity

Abstract

Despite the importance of social capital on green innovation has been recognized, our knowledge of the influence of second-order social capital is still unclear. Based on social exchange theory and transaction cost economics perspective, we develop hypotheses regarding the impacts of second-order social capital on green innovation, as well as the moderating role of governance ambidexterity (i.e., balanced dimension and combined dimension). We use questionnaires to collect data from 212 Chinese firms and conduct hierarchical regression analysis to test hypothesized relationships. The results suggest that second-order social capital from both customers and suppliers have positive effects on green exploitative innovation and exploratory innovation. Balanced dimension strengthens the effect of second-order social capital from customers on green exploratory innovation while weakens the effect of second-order social capital from suppliers on green exploratory innovation. Further, combined dimension strengthens the effect of second-order social capital from suppliers on green exploitative innovation while weakens the effect of second-order social capital from customers on green exploitative innovation. This research enriches the literature on social capital and green innovation.