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The Connection between Absorptive Capacity and Green Innovation: The Function of Board Capital and Environmental
Sohail Ahmad Javeed1, Boon Heng Teh2, Tze San Ong3,4
1Management School, Hunan City University, Yiyang 413000, China.
International Journal of Environmental Research and Public Health
|February 25, 2023
Summary
Chinese firms can enhance their capacity to absorb new knowledge through green innovation. Board capital and environmental regulations positively moderate this relationship, driving sustainable development.
Area of Science:
- Environmental Science
- Business Management
- Innovation Studies
Background:
- Increasing global emphasis on environmental regulations, sustainable development, and global warming pressures the industrial sector.
- The industrial sector faces significant challenges in addressing climate change issues.
Purpose of the Study:
- To investigate the relationship between green innovation and absorptive capacity in Chinese firms.
- To examine the moderating roles of board capital and environmental regulation on this relationship.
Main Methods:
- Utilized econometric methods for analysis.
- Supported by theoretical frameworks including the natural resource-based view, resource dependency theory, and the Porter hypothesis.
Main Results:
- Confirmed a positive association between green innovation and absorptive capacity.
- Identified board capital and environmental regulation as significant positive moderators.
Conclusions:
- Green innovation is crucial for Chinese firms to navigate environmental challenges and enhance absorptive capacity.
- Policies and corporate governance, specifically board capital, should be leveraged to promote green innovation and sustainable industrial practices.
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