Green Innovation Sustainability: How Green Market Orientation and Absorptive Capacity Matter?

Yueping Du and Huanhuan Wang
Additional contact information
Yueping Du: School of Economic and Management, Xidian University, Xi’an 710126, China
Huanhuan Wang: School of Economic and Management, Xidian University, Xi’an 710126, China

Sustainability, 2022, vol. 14, issue 13, 1-20

Abstract: Although there has been much research into green innovation, limited studies focus on the influence of internal factors on green innovation. This paper investigates whether and how two internal factors, such as green market orientation and absorptive capacity, facilitate green innovation. By dividing green innovation into green product innovation and process innovation, we also test the differential effects of the two internal factors on green product innovation and process innovation. Using a survey of 262 manufacturing firms in China, our results show that green market orientation improves only green product innovation, not green process innovation, whereas green absorptive capacity improves green product innovation and process innovation simultaneously. Green market orientation (green absorptive capacity) has a stronger impact on green product (process) innovation than on green process (product) innovation. Further, we find that a positive interaction effect of green market orientation and absorptive capacity on green product innovation and process innovation is significant. The findings contribute to the green innovation literature by providing an integrated framework for exploring whether the pursuit of green market intelligence and technological knowledge improves green product innovation and process innovation.

Keywords: green market orientation; green absorptive capacity; differential effect; synergy; green product innovation; green process innovation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.mdpi.com/2071-1050/14/13/8192/pdf (application/pdf)
https://www.mdpi.com/2071-1050/14/13/8192/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:13:p:8192-:d:855913

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().