Green innovation strategy, biodiversity and environmental regeneration: moderating role of entrepreneurial orientation and green absorptive capacity

Most of the previous works have studied the impact of green innovation and biodiversity strategies on environmental sustainability performance within firm; however, its wider impact on environmental regeneration, including biodiversity, water, air, noise, waste and natural resources, has received little attention. Consequently, the present study intends to inspect the impact of green innovation strategy on environmental regeneration. The role of entrepreneurial orientation and green absorptive capacity is also being explored between green innovation strategy and green product and process innovations.

A conceptual framework has been drafted, representing the relationships between the variables. 363 entrepreneurs of Delhi National Capital Region (Delhi-NCR) of India have agreed to provide the data for the purpose of the present study, which later employed partial least squares structure equation modeling (PLS-SEM) to test the empirical relationships.

The study conceptualized and tested the role of green innovation strategies in advancing product and process innovation, which results in environmental regeneration. The study decodes green innovation strategy to result in green product and process innovations. The findings also found that entrepreneurial orientation (EO) is insignificantly moderating, and green absorptive capacities (GAC) is significantly moderating between green innovation strategy (GIS) and green product innovation (GPI) and green process innovations (GSI).

This study contributes to existing literature related to biodiversity and green innovation, while contributing to resource-based view and dynamic capability theories. The finding also provides practical insights to companies to enable them to implement coherent green innovation strategies, while contributing to policymakers and society to encourage the adoption of environmentally friendly practices. However, the study has some geographical limitations due to which the findings could not be generalized.

The study offers a novel outlook by investigating the impact of green innovation strategies on environmental regeneration and biodiversity.