Distance with Customers Effects on Green Product Innovation in SMEs: A Way Through Green Value Co-creation

Abstract

Based on the perspective of multidimensional proximity, this paper examined the relationships between cognitive and social proximities with key customers and green product innovation performance via the mediation of green value co-creation by using data from 211 fine chemical small and medium-sized enterprises in clusters in China. Moderating effects of geographical distance and green project duration were assessed to further explore the relationship. The results revealed that social and cognitive proximities can promote green co-production and enhance green product innovation performance. Moreover, the relationship between social proximity and green co-production is hindered when customers are geographically distant or short duration partners of green projects. Eventually, this study was quite different from previous research by relating proximities to green value co-creation and green innovation performance in the context of small and medium-sized enterprises in emerging markets. The study provides a research framework for related research on green innovation.