Navigating Competitive Intensity: The Role of Digital Orientation in SMEs’ Green Innovations
Xiu-e Zhang,
Wei Wang (),
Xinyu Teng and
Liu Yang
Additional contact information
Xiu-e Zhang: Jilin University
Wei Wang: Jilin University
Xinyu Teng: Jilin University
Liu Yang: Jilin University
Journal of the Knowledge Economy, 2025, vol. 16, issue 1, No 102, 2880-2908
Abstract:
Abstract This study investigates the interrelations among digital orientation (DO), green absorptive capacity (GAC), and radical green innovation (RGI) in small and medium-sized enterprises (SMEs) in China, emphasizing the mediating role of the realized-to-potential GAC ratio (R-P ratio) and the moderating effect of competitive intensity (CI). Data from 157 Chinese SMEs, analyzed through hierarchical regression and the bootstrap method, indicate that a strong digital orientation significantly enhances the R-P ratio and RGI. The R-P ratio mediates the relationship between DO and RGI, confirming that enhanced green absorptive capacity is crucial for leveraging digital orientation towards effective green innovation. Furthermore, competitive intensity positively moderates the relationship between digital orientation and the R-P ratio, enhancing the strategic use of digital tools to manage environmental challenges effectively. These findings extend the dynamic capabilities theory by integrating digital and green dimensions and offer practical insights for SMEs striving to incorporate sustainable practices through technological and digital advancements. This research enriches the discourse on the synergy between technology and environmental innovation within the knowledge economy framework, providing valuable perspectives for policymakers and business leaders aiming to foster a sustainable, innovative, and technologically adept business environment.
Keywords: Digital orientation; Green absorptive capacity; Radical green innovation; Sustainable development; Competitive intensity; Environmental technology; SMEs; China (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
http://link.springer.com/10.1007/s13132-024-02110-9 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
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:spr:jknowl:v:16:y:2025:i:1:d:10.1007_s13132-024-02110-9
Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/13132
DOI: 10.1007/s13132-024-02110-9
Access Statistics for this article
Journal of the Knowledge Economy is currently edited by Elias G. Carayannis
More articles in Journal of the Knowledge Economy from Springer, Portland International Center for Management of Engineering and Technology (PICMET)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().