Unlocking green innovation and environmental performance: the mediated moderation of green absorptive capacity and green innovation climate

This study extends the foundations of the natural resource-based view (NRBV) by introducing a mediation-moderation framework by analyzing the influence of green intellectual capital (GIC) on both green innovation performance (GIP) and environmental performance (EP) while simultaneously considering the mediating role of green absorptive capacity (GAC) and the moderating influence of the green innovation climate (GICL). The data for this study was gathered from a sample of 575 participants employed within small and medium enterprises’ (SMEs’) manufacturing firms. This dataset was utilized to evaluate the proposed model; this study uses the PLS-SEM approach to comprehensively examine the complex interactions among these variables. This model adds to the theoretical understanding of NRBV and enhances its practical applicability. The findings of this study reveal a positive relationship between GIC, GAC, GIP, and EP within organizations. Furthermore, our investigation reveals a positive correlation between a GICL and the relationships involving GIC, GAC, GIP, and EP. Importantly, this research introduces a novel perspective by clarifying the complex relations among these variables and highlighting the positive correlation between a GICL and the relationships involving GIC, GAC, GIP, and EP. This novel approach enhances the theoretical understanding of NRBV and its practical applicability in fostering GIP and EP within manufacturing SMEs operating in Pakistan.