LINKING LEADERSHIP AND DIGITALIZATION TO CORPORATE GREEN PERFORMANCE: EVIDENCE FROM EMPLOYEE PARTICIPATION IN OPEN INNOVATION IN CHINA
DOI:
https://doi.org/10.18623/rvd.v22.n3.3379Keywords:
Dynamic Capabilities, Open Innovation, Corporate Green Performance, Sustainability in ChinaAbstract
This study investigates how dynamic capabilities enable green innovation and enhance corporate environmental performance in Chinese organizations. Drawing on Dynamic Capability Theory, the research examines the role of perceived green leadership support, digital infrastructure for sustainability, and green organizational culture in shaping employee participation in open innovation and, in turn, influencing corporate green performance. A quantitative design was employed, with survey data collected from 482 employees across environmentally regulated sectors in China. Structural equation modeling using SmartPLS was applied to test six hypotheses. The results demonstrate that both green leadership support and digital support significantly promote employee participation in open innovation, which emerged as the strongest predictor of perceived corporate green performance. Leadership and digital support also exhibited direct positive effects on green performance, confirming their independent importance as organizational enablers. Effect size analysis indicated that employee participation in open innovation had a medium effect on corporate green performance, while all other relationships were small. Contrary to expectations, green organizational culture did not significantly moderate the innovation–performance relationship, suggesting that cultural orientation may act more as a contextual baseline than as an active enhancer of dynamic capability deployment. These findings contribute to theory by clarifying the micro foundations of sustainability-oriented dynamic capabilities and by integrating open innovation into the dynamic capabilities framework. Practically, the study provides guidance for managers and policymakers in China seeking to align leadership development, digital transformation, and employee innovation engagement with national dual-carbon goals and broader sustainability agendas.
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