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Fostering Green Innovation Adoption through Green Dynamic Capability: The Moderating Role of Environmental Dynamism and Big Data Analytic Capability

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  • Danni Yu

    (School of Business & Economics, University of Putra Malaysia, Serdang 43400, Malaysia
    School of Economics and Management, Shandong Youth University of Political Science, Jinan 250103, China)

  • Shen Tao

    (Faculty of Medicine and Health Sciences, University of Putra Malaysia, Serdang 43400, Malaysia)

  • Abdul Hanan

    (National College of Business Administration and Economics, Lahore 54000, Pakistan)

  • Tze San Ong

    (School of Business & Economics, University of Putra Malaysia, Serdang 43400, Malaysia
    Department of Business Administration, Daffodil International University, Dhaka 1000, Bangladesh)

  • Badar Latif

    (School of Business & Economics, University of Putra Malaysia, Serdang 43400, Malaysia)

  • Mohsin Ali

    (Department of Commerce, Bahauddin Zakariya University, Multan 40000, Pakistan)

Abstract

Though the concept of green dynamic capability has been increasingly gaining traction among academics, practitioners, and policymakers, its association with green innovation adoption remains unclear. The present study addresses this gap and aims to provide clarity by distinguishing green innovation adoption in the context of developing countries. Drawing on dynamic capability and stakeholder theory, this research shed light on the significance of green dynamic capability for green innovation adoption. Additionally, this study examines the moderating role of environmental dynamism and big data analytics capability in the link between green dynamic capability and green innovation adoption. Adopting a two-wave research design, the sample for this study contained SMEs from Pakistan and Malaysia. Data was obtained from 220 SMEs (105 from Pakistan, 115 from Malaysia). To test the hypotheses, covariance-based structural equation modelling was performed to analyze causal relationships in the model, by using AMOS 23 software. The results showed that green dynamic capability positively impacts green innovation adoption, but environmental dynamism does not positively moderate between green dynamic capability and green innovation adoption. In addition, big data analytics capability positively moderates between green dynamic capability and green innovation adoption. We believe that this study opens a new avenue in the environmental literature under which green innovation adoption is useful for SMEs.

Suggested Citation

  • Danni Yu & Shen Tao & Abdul Hanan & Tze San Ong & Badar Latif & Mohsin Ali, 2022. "Fostering Green Innovation Adoption through Green Dynamic Capability: The Moderating Role of Environmental Dynamism and Big Data Analytic Capability," IJERPH, MDPI, vol. 19(16), pages 1-20, August.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:16:p:10336-:d:892579
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    5. Fenfen Ma & Shah Fahad & Shuxi Yan & Yapeng Zhang, 2023. "Digital Transformation and Corporate Environmental Green Innovation Nexus: An Approach towards Green Innovation Improvement," Sustainability, MDPI, vol. 15(7), pages 1-15, April.
    6. Han Xiao & Abdullah Al Mamun & Mohammad Masukujjaman & Qing Yang, 2023. "Modelling the significance of strategic orientation on green innovation: mediation of green dynamic capabilities," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-15, December.
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    10. Yue, Xiao-Guang & Lu, Changyi & Pi, Saiqi & Huang, Hongyu & Manta, Otilia, 2024. "The role of mineral resources, sustainable finance, and innovation in promoting sustainable development under the IRA 2022," Resources Policy, Elsevier, vol. 90(C).
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