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Linking firms’ life cycle, capabilities, and green innovation

Adeel Tariq (NUST Business School, National University of Sciences and Technology, Islamabad, Pakistan)
Yuosre F. Badir (School of Management, Asian Institute of Technology, Bangkok, Thailand)
Umar Safdar (School of Business and Management, Information Technology University, Lahore, Pakistan)
Waqas Tariq (University of Sialkot, Sialkot, Pakistan)
Kamal Badar (College of Business Administration, Prince Sultan University, Riyadh, Saudi Arabia)

Journal of Manufacturing Technology Management

ISSN: 1741-038X

Article publication date: 15 July 2019

Issue publication date: 13 March 2020

Abstract

Purpose

The purpose of this paper is to investigate the relationship between firms’ life cycle stages (mature vs growth) and green process innovation performance. In addition, this research delineates the mechanism by which the mature stage firms are more strongly associated with green process innovation performance compared to growth stage firms and recognizes technological capabilities as a mediating variable fundamental to achieve a higher level of green process innovation performance.

Design/methodology/approach

This research collected data from 202 publicly listed Thai manufacturing firms. Initially, it used multiple regression analysis to test the relationship between mature stage firms and green process innovation performance compared to the relationship between growth stage firms and green process innovation performance. Later, this research followed Muller et al. (2005) to test the mediating role of technological capabilities and conducted (Sobel, 1982, 1986; Preacher and Hayes, 2004) tests to further validate the mediation effect.

Findings

The hypothesized relationships were found to be significant, providing a strong support that mature stage firms have higher green process innovation performance compared with growth stage firms. Moreover, the technological capabilities more strongly mediate the relationship between mature stage firms and green process innovation performance compared to growth stage firms and green process innovation performance.

Originality/value

This research contributes to the existing understanding about the internal drivers of green process innovation performance by incorporating and analyzing the firms’ life cycle stages as an internal driver. This research also contributes by empirically testing the mediating role of technological capabilities on the relationship between firms’ life cycle stages and green process innovation performance.

Keywords

Citation

Tariq, A., Badir, Y.F., Safdar, U., Tariq, W. and Badar, K. (2020), "Linking firms’ life cycle, capabilities, and green innovation", Journal of Manufacturing Technology Management, Vol. 31 No. 2, pp. 284-305. https://doi.org/10.1108/JMTM-08-2018-0257

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited