Impact of green technology and regional market orientation on innovation performance of SMEs in China: Contextual analysis of structural and relational embeddedness

Abstract

The swift development and implementation of technology have forced enterprises in China to constantly enhance their capabilities to accomplish innovation objectives. In response to the need to improve innovation performance to stay competitive in the industry, enterprises in the region of Jiangsu have adopted a green technology orientation to develop sustainable technologies and regional market orientation to fulfil the needs and wants of environment‐conscious customers. This study assessed the relationship between green technology and regional market orientation and innovation performance and the moderating role of structural and relational embeddedness. The study performed a quantitative assessment using a survey method to collect data. This study gathered data from 386 respondents from small and medium‐sized enterprises (SMEs) from Jiangsu, which showed that both green technology and regional market orientation are essential predictors of innovation performance. Moreover, this study found a substantial moderating impact of structural and relational embeddedness on the relationship between green technology and regional market orientation and innovation performance of SMEs. The current study has several practical implications for leaders of SMEs to enhance their innovation performance.