The Relationship between Absorptive Capacity and Green Innovation
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.
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construction industry,” Energy Policy, vol. 9, no. 31, pp. 865-878, 2003.
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environmental innovations,” Strategic Management Journal, vol. 34, pp.
891-909, 2013.
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competitive advantage: The mediation role of green innovation,”
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technology and innovation management - An exploratory literature
review,” R&D Management, vol. 42, no. 2, pp. 180-192, 2012.
[7] T. Y. Chiou, H. K. Chan, F. Lettice, and S. H. Chung, “The influence of
greening the suppliers and green innovation on environmental
performance and competitive advantage in Taiwan,” Transportation
research, vol. 47, pp. 822-836, 2011.
[8] Y. S. Chen, “The driver of green innovation and green image: Green
core competence,” Journal of Business Ethics, vol. 81, no. 3, pp. 531-
543, 2008.
[9] G. Y. Qi, L. Y. Shen, S. X. Zeng, and O. J. Jorge, “The drivers for
contractors’ green innovation: an industry perspective,” Journal of
Cleaner Production, vol. 18, pp. 1358-1365, 2010.
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model for green innovation and performance in the construction
industry,” Construction Management and Economics, vol. 27, no. 5, pp.
451-464, 2009.
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perspective on learning and innovation,” Administrative Science
Quarterly, vol. 35, no. 1, pp. 125-152, 1990.
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learning environments in organization and partnership network from
innovation point of view,” Social Sciences, vol. 1, no. 63, pp. 68-79,
2009.
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destruction of industries,” Sloan Management Review, vol. 41, no. 1, pp.
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An empirical test of the mediating role of environmental innovation
strategy,” Journal of World Business, vol. 43, pp. 131-145, 2008.
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innovation performance on corporate advantage in Taiwan,” Journal of
Business Ethics, vol. 67, no. 4, pp. 331-339, 2006.
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core competence, ” Journal of Business Ethics, vol. 81, no. 3, pp. 531-
543, 2008.
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Family business and green innovation adoption,” Journal of
Management and Organization, vol. 15, pp. 309-326, 2009. [19] M.-L. Tseng, R. Wang, A. S. F. Chiu, Y. Geng, and Y. H. Lin,
“Improving performance of green innovation practices under
uncertainty,” Journal of Cleaner Production, vol. 40, pp. 71-82, 2013.
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measuring eco-innovation: An implementation perspective,”
Technovation, vol. 32, pp. 329-344, 2012.
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Exploring the relationship between organizational determinants of
innovation, types of innovations, and measures of organizational
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generation/transmission/use of innovation in construction activities,
Paper presented to the Third International Conference on Technology
Policy and Innovation: Global Knowledge Partnership - Creating Value
for the 21st century, Austin: TX. 30 August-2 September, 1999.
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Journal of Construction Engineering and Management, vol. 130, no. 3,
pp. 337–345, 2004.
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construction practices,” Construction Management and Economics,
vol.18, no. 8, pp. 949-957, 2000.
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Toyota,” Business Strategy and the Environment, vol. 16, pp. 202-213,
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Knowledge Intensive Business Service Sector,” Economics of
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innovations: an empirical analysis,” Management Science, vol. 32, pp.
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organization innovation,” MIS Quarterly, vol. 25, pp. 427-455,
2001.
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technology governance: a theory of multiple contingencies,” MIS
Quarterly, vol. 23, no. 2, pp. 261-290, 1999.
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the key determinants of data warehouse adoption,” Decision Support
Systems, vol. 44, pp. 817-841, 2008.
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innovation,” Construction Innovation, vol. 4, pp. 143-154, 2004.
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analytical frameworks and Korea’s experience,” Industrial & Corporate
Change, vol. 8, no. 1, pp.111-136, 1999.
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microfoundations of (sustainable) enterprise performance,” Strategic
Management Journal, vol. 28, no. 13, pp. 1319-1350, 2007.
[39] J. Vega-Jorado, A. Gutierrez-Garcia, and I. Fernandez-de-Lucio,
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R&D,” R&D Management, vol. 38, no. 4, pp. 392-405, 2008.
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human capital approach,” Economics of Innovation and New
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knowledge-intensive best practice,” SAM Advance Management Journal,
vol. 69, no. 2, pp. 21-27, 2004.
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absorptive capacity for different kinds of knowledge, ZEW Discussion
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innovation process: the eco-innovation model,” Journal of Knowledge
Management Practice, vol. 4, pp. 1-10, 2003.
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of the open innovation paradigm,” Social Sciences, vol. 2, no. 52, pp.79-
91, 2008.
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absorb?,” International Journal of Technology Management, vol. 37/3,
no. 4, pp. 149-172, 1999.
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influence on innovation output: Cross-cultural validation of the
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context of a newly industrialised country: a comparison of objective and
perceptual results from Greece,” Technovation, vol. 21, pp. 25-34, 2001.
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[1] S. Sorrell, “Making the link: climate policy and the reform of the UK
construction industry,” Energy Policy, vol. 9, no. 31, pp. 865-878, 2003.
[2] P. Berrone, A. Fosfuri, L. Gelabert, and L. R. Gomez-Mejia, “Necessity
as the mother of ‘Green Inventions’: Institutional pressures and
environmental innovations,” Strategic Management Journal, vol. 34, pp.
891-909, 2013.
[3] C. H. Lee, N. A. Wahid, and Y. N. Goh, “Perceived drivers of green
practices adoption: A conceptual framework,” The Journal of Applied
Business Research, vol. 29, no. 2, pp. 351-360, 2013.
[4] C. H. Chang, “The influence of corporate environmental ethics on
competitive advantage: The mediation role of green innovation,”
Journal of Business Ethics, vol. 104, no. 3, pp. 361-370, 2011.
[5] G. Azzone, and G. Noci, “Seeing ecology and “green” innovations as a
source of change,” Journal of Organizational Change Management, vol.
11, no. 2, pp. 94-111, 1998.
[6] T. Schiederig, F. Tietze, and C. Herstatt, “Green innovation in
technology and innovation management - An exploratory literature
review,” R&D Management, vol. 42, no. 2, pp. 180-192, 2012.
[7] T. Y. Chiou, H. K. Chan, F. Lettice, and S. H. Chung, “The influence of
greening the suppliers and green innovation on environmental
performance and competitive advantage in Taiwan,” Transportation
research, vol. 47, pp. 822-836, 2011.
[8] Y. S. Chen, “The driver of green innovation and green image: Green
core competence,” Journal of Business Ethics, vol. 81, no. 3, pp. 531-
543, 2008.
[9] G. Y. Qi, L. Y. Shen, S. X. Zeng, and O. J. Jorge, “The drivers for
contractors’ green innovation: an industry perspective,” Journal of
Cleaner Production, vol. 18, pp. 1358-1365, 2010.
[10] P. Gluch, M. Gustafsson, and L. Thuvander, “An absorptive capacity
model for green innovation and performance in the construction
industry,” Construction Management and Economics, vol. 27, no. 5, pp.
451-464, 2009.
[11] W. M. Cohen, and D. A. Levinthal, “Absorptive capacity: a new
perspective on learning and innovation,” Administrative Science
Quarterly, vol. 35, no. 1, pp. 125-152, 1990.
[12] P. Juceviciene, and I. Ceseviciute, “Characteristics of educational and
learning environments in organization and partnership network from
innovation point of view,” Social Sciences, vol. 1, no. 63, pp. 68-79,
2009.
[13] S. L. Hart, and M. B. Milstein, “Global sustainability and the creative
destruction of industries,” Sloan Management Review, vol. 41, no. 1, pp.
23-33, 1999.
[14] M. E. Porter, and M. R. Kramer, “Strategy and society: the link between
competitive advantage and corporate social responsibility,” Harvard
Business Review, vol. 84, no. 12, pp. 78-92, 2006.
[15] Y. Eiadat, A. Kelly, F. Roche, and H. Eyadat, “Green and competitive?
An empirical test of the mediating role of environmental innovation
strategy,” Journal of World Business, vol. 43, pp. 131-145, 2008.
[16] Y. S. Chen, S. B. Lai, and C. T. Wen, “The influence of green
innovation performance on corporate advantage in Taiwan,” Journal of
Business Ethics, vol. 67, no. 4, pp. 331-339, 2006.
[17] Y. S. Chen, “The driver of green innovation and green image: Green
core competence, ” Journal of Business Ethics, vol. 81, no. 3, pp. 531-
543, 2008.
[18] Y. C. Huang, H. B. Ding, and M. R. Kao, “Salient stakeholder voices:
Family business and green innovation adoption,” Journal of
Management and Organization, vol. 15, pp. 309-326, 2009. [19] M.-L. Tseng, R. Wang, A. S. F. Chiu, Y. Geng, and Y. H. Lin,
“Improving performance of green innovation practices under
uncertainty,” Journal of Cleaner Production, vol. 40, pp. 71-82, 2013.
[20] C. C. Cheng, and E. C. Shiu, “Validation of a proposed instrument for
measuring eco-innovation: An implementation perspective,”
Technovation, vol. 32, pp. 329-344, 2012.
[21] A. Subramanian, and S. Nilakanta, “Organizational innovativeness:
Exploring the relationship between organizational determinants of
innovation, types of innovations, and measures of organizational
performance,” International Journal Management Science, vol. 24, no.
6, pp. 631-647, 1996.
[22] P. Ussahawanitchakit, “Administrative innovation, technical innovation,
competitive advantage, competitive environment, and firm performance
of electronics businesses in Thailand,” Review of Business Research,
vol. 12, no. 1, pp. 1-10, 2012.
[23] F. Anderson, and A. Manseau, A systemic approach to
generation/transmission/use of innovation in construction activities,
Paper presented to the Third International Conference on Technology
Policy and Innovation: Global Knowledge Partnership - Creating Value
for the 21st century, Austin: TX. 30 August-2 September, 1999.
[24] B. Bossink, “Managing drivers of innovation inconstruction networks,”
Journal of Construction Engineering and Management, vol. 130, no. 3,
pp. 337–345, 2004.
[25] R. J. Cole, “Building environmental assessment methods: assessing
construction practices,” Construction Management and Economics,
vol.18, no. 8, pp. 949-957, 2000.
[26] J. Cramer, “Towards innovative, more eco-efficient product design
strategies,” Journal of Sustainable Product Design, vol. April, no. 1, 7-
16, 1997.
[27] T. Hordern, S. Börjesson, and M. Elmquist, Managing green innovation,
Center for Business Innovation Working Paper Series, No.10, Sweden,
2008.
[28] M. Nieto, and P. Quevedo, “Absorptive capacity, technological
opportunity, knowledge spillovers and innovative effort,” Technovation,
vol. 25, pp. 1141-1157, 2005.
[29] M. Williander, “Absorptive capacity and interpretation system’s impact
when ‘going green’: an empirical study of Ford, Volvo cars and
Toyota,” Business Strategy and the Environment, vol. 16, pp. 202-213,
2007.
[30] Y. Caloghirou, I. Kastelli, and A. Tsakanikas, “Internal capabilities and
external knowledge sources: complements or substitutes for innovative
performance?,” Technovation, vol. 24, pp. 29-39, 2004.
[31] A. Koch, and H. Strotmann, “Absorptive capacity and innovation in the
Knowledge Intensive Business Service Sector,” Economics of
Innovation and New Technology, vol. 17, no. 6, pp. 511-531, 2008.
[32] R. D. Dewar, and J. E. Dutton, “The adoption of radical and incremental
innovations: an empirical analysis,” Management Science, vol. 32, pp.
1422-1433, 1986.
[33] R. G. Fichman, “The role of aggregation in the measurement of ITrelated
organization innovation,” MIS Quarterly, vol. 25, pp. 427-455,
2001.
[34] V. Sambamurthy, and R. W. Zmud, “Arrangement for information
technology governance: a theory of multiple contingencies,” MIS
Quarterly, vol. 23, no. 2, pp. 261-290, 1999.
[35] K. Ramamurthy, A. Sen, and A. P. Sinha, “An empirical investigation of
the key determinants of data warehouse adoption,” Decision Support
Systems, vol. 44, pp. 817-841, 2008.
[36] A. M. Blayse, and K. Manley, “Key influences on construction
innovation,” Construction Innovation, vol. 4, pp. 143-154, 2004.
[37] L. Kim, “Building technological capability for industrialization:
analytical frameworks and Korea’s experience,” Industrial & Corporate
Change, vol. 8, no. 1, pp.111-136, 1999.
[38] D. J. Teece, “Explicating dynamic capabilities: The nature and
microfoundations of (sustainable) enterprise performance,” Strategic
Management Journal, vol. 28, no. 13, pp. 1319-1350, 2007.
[39] J. Vega-Jorado, A. Gutierrez-Garcia, and I. Fernandez-de-Lucio,
“Analyzing the determinants of firm’s absorptive capacity: beyond
R&D,” R&D Management, vol. 38, no. 4, pp. 392-405, 2008.
[40] A. L. Vinding, “Absorptive capacity and innovative performance: a
human capital approach,” Economics of Innovation and New
Technology, vol. 15, no. 4/5, pp. 507-517, 2006.
[41] A. Daghfous, “Absorptive capacity and the implementation of
knowledge-intensive best practice,” SAM Advance Management Journal,
vol. 69, no. 2, pp. 21-27, 2004.
[42] F. A. J. Van den Bosch, H. W. Volberda, and M. de Boer, “Coevolution
of firm absorptive capacity and knowledge environment: Organizational
forms and combinative capabilities,” Organization Science, vol. 10, no.
5, pp. 551-568, 1999.
[43] T. Schmidt, Absorptive capacity: one size fits all? firm-level analysis of
absorptive capacity for different kinds of knowledge, ZEW Discussion
Papers, No. 05-72, 2005.
[44] J. A. Albers, and S. Brewer, “Knowledge management and the
innovation process: the eco-innovation model,” Journal of Knowledge
Management Practice, vol. 4, pp. 1-10, 2003.
[45] B. Janiunaite, “Characteristics of educational dimensions in the context
of the open innovation paradigm,” Social Sciences, vol. 2, no. 52, pp.79-
91, 2008.
[46] V. Mangematin, and L. Nesta, “What kind of knowledge can a firm
absorb?,” International Journal of Technology Management, vol. 37/3,
no. 4, pp. 149-172, 1999.
[47] N. Murovec, and I. Prodan, “Absorptive capacity, its determinants, and
influence on innovation output: Cross-cultural validation of the
structural model,” Technovation, vol. 29, no. 12, pp. 859-872, 2009.
[48] J. L. Pierce, and A. L. Delbecq, “Organizational structure, individual
attitudes, and innovation,” Academy of Management Review, vol. 2, pp.
27-37, 1977.
[49] A. Leiponen, and C. E. Helfat, “Innovation objectives, knowledge
sources and the benefits of breadth,” Strategic Management Journal,
vol. 31, pp. 224-236, 2010.
[50] I. Kastelli, Y. Caloghirou, and S. Ioannides, Cooperative R&D as a
means for knowledge creation, Paper presented in MESIAS workshop,
Budapest, 2001.
[51] M. J. Mol, and J. Birkinshaw, “The sources of management innovation:
when firms introduce new management practices,” Journal of Business
Research, vol. 62, pp. 1269-1280, 2009.
[52] V. Souitaris, “External communication determinants of innovation in the
context of a newly industrialised country: a comparison of objective and
perceptual results from Greece,” Technovation, vol. 21, pp. 25-34, 2001.
[53] K. H. Kang, and J. Kang, “How do firms source external knowledge for
innovation? Analysing effects of different knowledge sourcing
methods,” International Journal of Innovation Management, vol, 13, no.
1, pp. 1-17, 2009.
[54] G. Ahuja, “Collaboration networks, structural holes and innovation: A
longitudinal study,” Administrative Science Quarterly, vol. 45, pp. 425–
455, 2000.
[55] R. T. Sparrowe, R.C. Liden, S.J Wayne, and M.L. Kraimer, “Social
networks and the performance of individuals and groups,” Academy of
Management Journal, vol. 44, no. 2, 316-325, 2001.
[56] I. M. B. Freitas, T. H. Clausen, R. Fontana, and B. Verspagen, “Formal
and informal external linkages and firms’ innovative strategies. A crosscountry
comparison,” Journal of Evolutionary Economics, vol. 21, pp.
91-119, 2011.
[57] J. Armstrong, and T. S. Overton, “Estimating nonresponse bias in mail
surveys,” Journal of Marketing Research, vol. 14, no. 3, pp. 396-402,
1977.
[58] A. Sev, “How can the construction industry contribute to sustainable
development? A conceptual framework,” Sustainable Development, vol.
17, pp. 161-173, 2009.
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@article{"International Journal of Business, Human and Social Sciences:69382", author = "R. Hashim and A. J. Bock and S. Cooper", title = "The Relationship between Absorptive Capacity and Green Innovation", 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.
", keywords = "Absorptive capacity, construction industry,
environmental, green innovation.", volume = "9", number = "4", pages = "1065-8", }
