Enabling environmental innovation via green supply chain integration: A perspective of information processing theory

Abstract

Although green supply chain integration (GSCI) is important, its influence on environmental innovation remains inconclusive. Based on information processing theory, we explore how the two dimensions of GSCI (i.e. green supplier and customer integration) affect two types of environmental innovation (i.e. incremental or radical environmental innovation) via information sharing and information redundancy, as well as the moderating role of knowledge combination. We test hypotheses using two-waved survey data from 206 Chinese manufacturers and structural equation model analysis. The results indicate that information sharing with customer mediates the impact of green customer integration on radical environmental innovation, while information redundancy mediates the effects of green supplier integration on environmental incremental and radical innovation. In addition, information sharing with supplier negatively affects information redundancy, while information sharing with customer positively affects information redundancy. We also find that knowledge combination strengthens the positive effects of information sharing with supplier and customer on incremental environmental innovation and the negative impact of information redundancy on radical environmental innovation. Our findings contribute to GSCI and environmental innovation literature.