Green absorptive capacity: A mediation-moderation model of knowledge for innovation

Supported by the dynamic capabilities literature, this study examines the linkages between environmental factors, organizational factors and green innovation performance in light of the moderating effect of green absorptive capacity. Based on a sample of 78 firms in the electric power industry in Brazil, a mediation-moderation model is proposed and tested using partial least squares structural equation modelling, which allows the analysis of both direct and indirect relationships. The results yielded general support for the study hypotheses, suggesting that (i) environmental factors have both a direct and indirect positive effect on green innovation performance, (ii) organizational factors fully mediate the effect of environmental factors on green innovation performance, and (iii) green absorptive capacity has a positive moderating impact on the mediation model. These findings provide empirical evidence of a better understanding of the antecedents of green innovation performance by highlighting the role of green absorptive capacity.