Enhancing green technology innovation through enterprise environmental governance: A life cycle perspective with moderator analysis of dynamic innovation capability

• Published in: Energy policy 2023-11, Vol.182, p.113773, Article 113773
• Main Authors: Pan, Xianyou, Shen, Zhiyang, Song, Malin, Shu, Yalin
• Format: Article
• Language: English
• Subjects: Dynamic innovation capability; Economics and Finance; Environmental governance; Green technology innovation; Humanities and Social Sciences; Life cycle; Moderating effect
• ISSN: 0301-4215; 1873-6777
• DOI: 10.1016/j.enpol.2023.113773

Consolidating the leadership of enterprises in Environmental Governance (EG) and enhancing their Green Technology Innovation (GTI) are vital for fostering global ecological civilization. Previous research has primarily focused on the non-linear relationship between EG and GTI but has overlooked the factors that contribute to varying GTI effects in response to EG constraints across different stages of a business's life cycle. Drawing on data from Chinese A-share listed enterprises, this study investigates the impact of EG on GTI by considering two typical forms of EG: cost-based and voluntary participation. Furthermore, it introduces the concept of dynamic innovation capability (DIC) based on the principles of open innovation paradigm. The findings reveal that, contrary to the positive influence observed during the growth and maturity stages, EG has no significant effect on GTI during the recession stage. One-way ANOVA results demonstrate that enterprises' DIC varies across different life cycle stages, with a declining trend observed during the maturity, growth, and recession stages. Moreover, the study finds that DIC, encompassing absorptive, operational, perceptual, and relational capabilities, positively moderates the impact of EG on GTI. These conclusions shed light on the differentiated effects of EG on enterprises' GTI at various life cycle stages. •Test the impact of different environmental governance on enterprise green technology innovation.•Discuss the differentiated green technology innovation from the perspective of the life cycle.•Refine dynamic innovation capability based on the open innovation paradigm.•Analyzes the impact of dynamic innovation ability on green technology innovation.