Unabsorbed slack, capability reconfiguration and green innovation behavior: the moderating role of consumer green pressure

Purpose Implementing green innovation is crucial for firms to build or sustain competitive advantages within the context of the sustainable development goals. Academic research has broadly explored how firms can induce green innovation behavior (GIB), examining external factors, but few studies in the current literature have deeply investigated unabsorbed slack as an internal antecedent of GIB. Drawing upon the behavioral theory of the firm and integrating it with dynamic capabilities theory, this study aims to address this deficiency by investigating the impact of unabsorbed slack on GIB and the mediating roles of two dimensions of capability reconfiguration: capability evolution and capability substitution in the relationship between unabsorbed slack and GIB. Furthermore, this study also discusses the moderating effects of consumer green pressure on the relationship between unabsorbed slack and capability evolution/substitution. Design/methodology/approach Survey data were collected from 286 Chinese technology-intensive manufacturing firms to empirically test the relationships among the variables. Findings The results reveal that unabsorbed slack has a positive influence on GIB. Furthermore, capability evolution and substitution both play mediating roles in the relationship between unabsorbed slack and GIB. Comparative analysis showed that the mediating effect of capability substitution is stronger than that of capability evolution. Moreover, consumer green pressure strengthens the positive relationship between unabsorbed slack and capability evolution/substitution. Originality/value This study enriches the research on the driving forces of GIB and contributes to providing managerial implications for firms to launch green innovation activities.