Analyzing the relationship between green innovation and environmental performance in large manufacturing firms

TLDR

Existing research links green intellectual capital, green human resource management, and green innovation to firms' environmental performance. This study contends that green innovation mediates the effects of green intellectual capital and green human resource management on environmental performance, while environmental strategies directly influence performance and moderate the green‑innovation–performance link. The model was tested using data from 244 large manufacturing firms. Structural equation modeling confirmed most of the proposed hypotheses.

Abstract

Extant literature suggests that green intellectual capital (GIC), green human resource management (GHRM), and green innovation (GI) impacts the environmental performance of firms. In this paper, we argue that the relationship between GIC, GHRM, GI and environmental performance is more complex than previously suggested. We propose that neither GIC nor GHRM are directly related to environmental performance. We argue instead that GI mediates the relationships between GIC, GHRM, and environmental performance. Further, we suggest that environmental strategies are directly related to environmental performance, while also moderating the relationship between GI and environmental performance. We tested our proposed model on a sample of 244 large manufacturing firms. The results of a structural equation modeling analysis provide support for most of our hypotheses.