How Does Environmental Dynamism Impact Green Process Innovation? A Supply Chain Cooperation Perspective

Environmental dynamism, as exemplified by the rate of change and the degree of instability of the environment, plays a considerable role in determining whether firms will adopt green process innovation (GPI). Although environmental dynamism may offer new development opportunities, it also increases the risks and uncertainties associated with market potential and technology prospects. Integrating works on organizational adaptation theory and the framework of technology push, market pull, and regulatory push/pull, we examine the effects of environmental dynamism on GPI, with a focus on the moderating effects of supply chain cooperation. Examining a sample of 210 manufacturing firms in China, we find that GPI is positively related to technological dynamism but negatively associated with regulatory dynamism. In addition, supply chain cooperation weakens the association between environmental dynamism and GPI: specifically, supply chain cooperation reduces both the positive effect of technological dynamism and the negative effect of regulatory dynamism on GPI. These findings offer a new explanation for the ambiguous viewpoints and results by providing finer-grained insights on how and under which situation environmental dynamism impacts GPI.