Integrating external stakeholders for improvement in green innovation performance: role of green knowledge integration capability and regulatory pressure

Abstract

PurposeGreen innovation, particularly in manufacturing firms, is one of the most advocated methods to curb the effects of climate change. This study aims to investigate the impact of the integration of green customers and suppliers on the green innovation performance of food manufacturing firms in Pakistan. The institutional and resource-based view theories determine the moderating role of regulatory pressure and the mediating role of green knowledge integration capability (GKIC).Design/methodology/approachData was collected from 511 middle management-level employees of food manufacturing firms in Pakistan. The questionnaire was tested for reliability and validity. Hierarchical regression is used to test the proposed hypothesis.FindingsA marginal improvement in integration with green customers can increase the green innovation performance (GIP) of a firm by 23.6%. Green supplier integration can improve the GIP by 14.2%, whereas the GKIC mediates the relationship between Green Customers Integration (GCI) and GIP but not for green suppliers integration (GSI). The moderating effect of regulatory pressure was significant for the relationship between GCI and GIP but insignificant for GSI.Originality/valueFood manufacturing accounts for approximately 16% of global green house gases (GHG) emissions. Sustainable development goals (SDGs) cannot be achieved without a significant decrease in GHG emissions by food manufacturing companies. Therefore, it is crucial to investigate firms' green innovation performance in this sector. The findings of this study can help policymakers develop policies for achieving SDGs.