Abstract: Absorptive capacity generally facilitates the adoption
of innovation. How does this relationship change when economic
return is not the sole driver of innovation uptake? We investigate
whether absorptive capacity facilitates the adoption of green
innovation based on a survey of 79 construction companies in
Scotland. Based on the results of multiple regression analyses, we
confirm that existing knowledge utilisation (EKU), knowledge
building (KB) and external knowledge acquisition (EKA) are
significant predictors of green process GP), green administrative
(GA) and green technical innovation (GT), respectively. We discuss
the implications for theories of innovation adoption and knowledge
enhancement associated with environmentally-friendly practices.