This study provides an integrative model that facilitates green product innovation (GPI) by adopting dynamic capabilities theory and the motivation-opportunity-ability (MOA) framework. Drawing on dynamic capabilities theory, this study emphasizes green supply chain integration (GSCI), consisting of internal and external integration, as a dynamic capability that drives GPI. Moreover, this study analyzes the environmental conditions that benefit the development of dynamic capabilities using the MOA framework and focuses specifically on government support (GS) and market greenness (MG) as precursors to GSCI.
Survey data were collected from 300 Chinese manufacturing firms. The proposed hypotheses were tested using hierarchical multiple regression analysis.
The regression analysis reveals that (1) GS and MG positively affect both internal and external integration and (2) internal and external integration positively affect GPI.
In explicating a model of GPI, this study extends the theoretical lens of dynamic capabilities beyond the intraorganizational level to the supply chain level. Moreover, this study enhances the understanding of dynamic capability development by considering the environmental conditions that represent motivation- and opportunity-based drivers of GSCI.
