Explaining green innovation from a knowledge-based dynamic capabilities perspective

Abstract

Grounded in knowledge-based dynamic capabilities theory, this study investigates how green knowledge sharing influences green innovation through customer involvement moderated mediating mechanisms of knowledge creation and innovation capability. Employing a multimethod research design, this study tested for moderated-mediation relationships and a necessary condition analysis (NCA) by employing primary data from manufacturing firms in Pakistan. Results illustrate that both innovation capability and knowledge creation mediate the relationship between green knowledge sharing and green innovation, whereas customer involvement weakens the green knowledge sharing–innovation capability and green knowledge sharing–knowledge creation relationships. These findings make several theoretical and managerial contributions that inform practitioners regarding the various mechanisms through which firms can achieve green innovation.