Citation

Javeed, Sohail Ahmad and Teh, Boon Heng and Ong, Tze San and Phuong Lan, Nguyen Thi and Muthaiyah, Saravanan and Latief, Rashid (2023) The Connection between Absorptive Capacity and Green Innovation: The Function of Board Capital and Environmental Regulation. International Journal of Environmental Research and Public Health, 20 (4). p. 3119. ISSN 1660-4601

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Abstract

The stress of environmental regulations, sustainable development objectives, and global warming is becoming more prominent now. Most studies conclude that the industrial sector is largely at fault and under tremendous pressure to address these climate change issues. This study highlights the significance of green innovation to Chinese firms in mitigating these conservational challenges, and the study probes the association between green innovation and absorptive capacity. Additionally, board capital (the social and human capital of directors) and environmental regulation—both drivers of green innovation—are explored as moderators between green innovation and absorptive capacity. With appropriate econometric methods and theoretical support from the natural resource-based review, the resource dependency theory, and the Porter hypothesis, the results indicate the positive relationship between green innovation and absorptive capacity. They also reveal board capital and environmental regulation as positive moderators, emphasizing their significance to green innovation. This study offers several suggestions and directives for stakeholders, such as businesses, policymakers, and governments, to foster green innovation for greater profitability, minimizing negative industrial consequences.

Item Type:	Article
Uncontrolled Keywords:	green innovation; absorptive capacity; board capital; environmental regulations
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD9000-9999 Special industries and trades
Divisions:	Faculty of Management (FOM)
Depositing User:	Ms Nurul Iqtiani Ahmad
Date Deposited:	11 Apr 2023 02:35
Last Modified:	11 Apr 2023 02:35
URII:	http://shdl.mmu.edu.my/id/eprint/11336

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