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Fostering Green Innovation Adoption through Green Dynamic Capability: The Moderating Role of Environmental Dynamism
Danni Yu1,2, Shen Tao3, Abdul Hanan4
1School of Business & Economics, University of Putra Malaysia, Serdang 43400, Malaysia.
Summary
Green dynamic capability significantly boosts green innovation adoption in SMEs. Big data analytics capability enhances this relationship, while environmental dynamism does not. This research clarifies green innovation for developing economies.
Area of Science:
- Environmental Science
- Business Management
- Innovation Studies
Background:
- Green dynamic capability is gaining attention but its link to green innovation adoption is unclear.
- Developing countries require specific insights into green innovation adoption.
- Stakeholder theory and dynamic capability theory provide a framework for understanding green practices.
Purpose of the Study:
- To clarify the association between green dynamic capability and green innovation adoption in SMEs.
- To investigate the moderating roles of environmental dynamism and big data analytics capability.
- To provide context-specific findings for developing economies like Pakistan and Malaysia.
Main Methods:
- A two-wave research design was employed with 220 SMEs from Pakistan and Malaysia.
- Covariance-based structural equation modeling (SEM) was used to analyze causal relationships.
- Data analysis was performed using AMOS 23 software.
Main Results:
- Green dynamic capability was found to have a significant positive impact on green innovation adoption.
- Big data analytics capability positively moderated the relationship between green dynamic capability and green innovation adoption.
- Environmental dynamism did not significantly moderate the relationship between green dynamic capability and green innovation adoption.
Conclusions:
- Green dynamic capability is crucial for SMEs to adopt green innovations, especially in developing countries.
- Leveraging big data analytics capability can amplify the positive effects of green dynamic capability on green innovation.
- The findings offer valuable insights for academics, practitioners, and policymakers focused on sustainable business practices.
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