Green Innovation Under Uncertainty — A Dynamic Perspective

Abstract

Increasing concerns regarding environment and sustainability drive firms to devote resources to green product development to satisfy customers’ preference and gain competitive advantage. Organizations require an effective learning orientation along with a market-based orientation in order to tackle sustainability challenges to gain competitive advantage. The study proposes a conceptual framework to analyze the effects of learning orientation and market orientation in improving a firm’s green innovation.

More importantly, the framework describes how the orientation impacts innovation under different environmental settings. Data from 231 China-based companies were used in the study and the results indicate the nature of the linkages between a firm’s green innovation and its learning and market orientation. Guidelines for practitioners on managing environmental uncertainties and improving green innovation is discussed.

Keywords: Green innovation, Learning orientation, Market orientation, Environmental uncertainty