Enhancing Green Absorptive Capacity, Green Dynamic Capacities and Green Service Innovation to Improve Firm Performance: An Analysis of Structural Equation Modeling (SEM)

Yu-Shan Chen,Ching-Ying Lin,Yu-Hsien Lin,Chih-Wei Chang

doi:10.3390/su71115674

Yu-Shan Chen, Ching-Ying Lin + Show 2 more

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https://doi.org/10.3390/su71115674

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Abstract

This study discusses the influences of green absorptive capacity, green dynamic capacities, and green service innovation on firm performance. In order to fill the research gap, this study proposes the concept of green service innovation. The results are as follows: First, this study finds that green absorptive capacity has positive effects on green dynamic capacities, green service innovation, and firm performance. Second, this study points out that green dynamic capacities have positive effects on green service innovation and firm performance. Third, this study observes that green dynamic capacities and green service innovation intercede the positive connection between green absorptive capacity and firm performance.

Highlights

The world’s response to climate change began at the Rio Earth Summit in 1992, where the “RioConvention” set out a framework for action aimed at reducing greenhouse gases (GHGs) to avoid a disastrous catastrophe based on the UN Framework on Climate Change (UNFCCC)
This paper primarily aims to explore the influences of green absorptive capacity, green dynamic capacities, green service innovation on firm performance
Because Taiwanese electronics products are sold across the world, Taiwanese electronics products must comply with severe environmental regulations, such as Kyoto Protocol, UN Framework on Climate Change (UNFCCC), Directive on Energy-using Products (EuP), and Intended Nationally Determined Contributions (INDCs), so that Taiwanese electronics companies must generate their products in terms of green way which can satisfy popular consumer environmentalism [21,58]

Summary

Introduction

The world’s response to climate change began at the Rio Earth Summit in 1992, where the “Rio. Convention” set out a framework for action aimed at reducing greenhouse gases (GHGs) to avoid a disastrous catastrophe based on the UN Framework on Climate Change (UNFCCC). The major mission of the annual Conference of Parties (COP) is to review the Convention’s implementation. Conference of the Parties (COP21) in Paris in December 2015 aim to attain a legally international agreement on climate, with the goal of keeping global warming below 2 °C. There are numerous opportunities for companies to sell green products or services under the environmental context [1]. Green or environmentally-responsible products and services are increasingly important for retailers, and their market size continues to rapidly grow [2]. Owing to the advent of new environmentalism, green economy is quickly developed by the prevalence of environmentally friendly products and services.

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