Leveraging green dynamic capabilities and institutional support for green technological innovation and performance: evidence from spanish manufacturing firms

Abstract

Drawing on dynamic capabilities theory (DCT) and the resource-based view (RBV) perspective, this study proposes a moderated mediation model examining how green dynamic capabilities (GDCs) influence green performance (GP) through the mediation of green technological innovation (GTI), with the moderating effect of institutional support. Using a quantitative approach, partial least squares structural equation modeling (PLS-SEM) and moderated mediation analysis were employed to examine the study model, which was based on data collected from 343 managers in Spanish manufacturing firms. The results indicate that GDCs have a positive impact on GP dimensions, including green management and green product and process performance, and GTI serves as a significant mediator. Moreover, institutional support strengthens the relationship between GDC and GTI. The moderated mediation results also reveal that GTI's mediating role on GDCs and different aspects of green performance is stronger when institutional support is high. The results underscore the importance of firms spending on GDCs, promoting GTI, and exploiting institutional support to gain sustainable competitive advantages. By integrating DCT and RBV, this study extends the application of these theories to new contexts, providing insights that are both academically and practically relevant.