Postformation alliance capabilities and environmental innovation: The roles of environmental in-learning and relation-specific investments

Abstract

This paper draws insights from the relational view perspective to examine the effects of two postformation alliance capabilities—interorganizational coordination and communication, and relation-specific investments on small- and medium-sized enterprises' (SMEs') environmental innovation. Analysis of time-lagged survey data from a sample of 223 SMEs from the United Arab Emirates (UAE) shows a positive interactive effect of interorganizational coordination and communication on environmental innovation, and this relationship is mediated by environmental in-learning. The results further indicate that relation-specific investment moderates the indirect relationship between the complementary effect of interorganizational coordination and communication and environmental innovation. These findings extend the environmental innovation literature by exploring the interactive effect of interorganizational coordination and communication on environmental innovation.