Linking green intellectual capital with green innovation: Examining the roles of green dynamic capabilities and 'motivation to achieve legitimacy'

Abstract

The present study aims to investigate the roles of agricultural firms' green dynamic capabilities (DCs) and 'motivation to achieve legitimacy' in the relationship between green intellectual capital (IC) and green innovation. We posit the 'resource-capability-outcome' model according to which green IC is an important strategic resource which helps firms to build and increase green DCs in order to achieve green innovation outcomes. The data were collected from 146 firms operating in both primary and secondary sectors. Partial least squares structural equation modelling (PLS-SEM) was used with WarpPLS 8.0 to process and analyse the data. The results indicated that green DCs serve as an important underlying mechanism and mediate the relationship between green IC and green innovation. Moreover, results also supported the moderating role of the firms' motivation to achieve legitimacy, implying that high motivation strengthens the relationship between green DCs and green innovation. However, the results did not support moderation for the relationship between green IC and green DCs.