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Fostering green innovation performance through open innovation strategies: do green subsidies work?

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  • Hoang Thu Thao

    (Shanghai University
    University of Finance - Marketing)

  • Xuemei Xie

    (Tongji University)

Abstract

In today’s competitive market, the importance of open innovation with external involvement has been recognized. However, with the increasing number of manufacturers pursuing environmentally sustainable production, existing studies have failed to fully elaborate on the mechanism of how open innovation could foster its impact on green innovation performance. To address this research gap, this study investigates the role of open innovation as a driver of firms’ green product innovation performance and process innovation performance, as well as the moderating effect of green subsidies on these relationships. We empirically examine the research hypotheses employing survey data collected from 254 Vietnamese manufacturers analyzed by structural equation modeling (SEM). The data support all four hypotheses in our study (β = 0.251, β = 0.177, β = − 0.499, β = − 0.557 for 4 hypotheses respectively). In addition, we found that the different sources of external knowledge (market sources, institutional sources, specialized sources, and other sources) firms acquired convey different effects on green product and process innovation performance. Based on the evidence, policymakers and firm practitioners can also incorporate the findings and insights of this study while devising their policies to foster green innovation performance.

Suggested Citation

  • Hoang Thu Thao & Xuemei Xie, 2024. "Fostering green innovation performance through open innovation strategies: do green subsidies work?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 18641-18671, July.
    • Handle: RePEc:spr:endesu:v:26:y:2024:i:7:d:10.1007_s10668-023-03409-4
    DOI: 10.1007/s10668-023-03409-4
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    More about this item

    Keywords

    Green product innovation performance; Green process innovation performance; Open innovation; Green subsidies;
    All these keywords.

    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • L17 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Open Source Products and Markets
    • O36 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Open Innovation
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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