Capabilities and organisational dimensions conducive to green product innovation: Evidence from Croatian and Spanish manufacturing firms

Abstract

This paper aims to determine which configuration of green innovation capabilities (GICs) and organisational dimensions (ODs) leads to achieving green product innovation (GPI). We used data collected through the European Manufacturing Survey (EMS) from manufacturing firms in Spain and Croatia considered to be innovators. After conducting a cluster analysis, we identified a group of firms that still develop conventional product innovations (CPIs) and three groups of firms at different stages of GPI development. The four clusters were characterised using different variables, or determinants of GPI, associated with seven GICs and five ODs that favour GPI. According to the findings, all the GICs and ODs under analysis have a positive impact on GPI development, which results in the consolidation of a framework that organisations could use to manage green innovation. By empirically showing the relevance of applying these constructs, this study makes contributions to the Resource-Based Theory (RBT), along with its extension to GICs, and points to the need to associate them with the ODs to achieve GPI towards the challenge of sustainable development