Go for green: green innovation through green dynamic capabilities: accessing the mediating role of green practices and green value co-creation.

Abstract

Increasing business organizations are also damaging the natural infrastructure, and researchers are pressing hard on this issue since several decades. Moreover, the studies relating to business organizations only focus on the establishment, development, and success of businesses and paid less attention to the dark trade business expansions, i.e., lack of green innovation and increase in pollution and environment damages. Keeping in view these issues, this study is aimed at investigating the effect of green dynamic capabilities, green practices, and green value co-creation on green innovation in SMEs (small and medium enterprises). This study also tested the mediating role of value co-creation in the links between green practices-green innovation and green dynamic capability-green innovation. Structural equation modeling (SEM) was used, and the mediation analysis was conducted through Preacher and Hayes Approach (2004, 2008) and through Soble test. Empirical results proved that green dynamic capabilities, green practices, and green value co-creation improve the mechanism of green innovation in SMEs.