Role of Green Dynamic Capabilities on Environmental and Social Innovation Behavior: Mediating of Green Creativity and Moderating of Innovation Proclivity

Abstract

The pharmaceutical industry has recently faced many environmental challenges and pressures due to increased environmental awareness. Prior researchers have found that green dynamic capability and green creativity are important aspects of sustainable growth and can provide a competitive edge. On the other hand, enhancing the environmental and social innovation behavior of employees through green dynamic capability and green creativity involves various issues, and there is a need to address these challenges. Therefore, this study’s objective is to examine the influence of green dynamic capability on environmental and social innovation behavior with the mediating role of green creativity and the moderating effect of a manager’s innovation proclivity. This study applied the partial least squares structural equation modeling (PLS-SME) method to test the hypotheses on a sample of 320 employees working in pharmaceutical industries in China. The main results are as follows. (1) Green dynamic capability positively influences green creativity and environmental and social innovation behavior. (2) Green creativity has a significant indirect effect on the relationship between green dynamic capability and social innovation behavior. (3) Managers’ innovation proclivity is significantly associated with green creativity and moderates the link between green dynamic capabilities and green creativity. This study provides theoretical and practical guidance for practitioners and policymakers to gain a better understanding of how to enhance green dynamic capability and green creativity to achieve the desired environmental and social innovation behavior for sustainability goals.