How does consumer pressure affect green innovation of manufacturing SMEs in the presence of green human resource management and green values? A moderated mediation analysis

Abstract

Although consumer pressure has been recognized as an essential driver of green innovation, the question remains as to how consumer pressure could lead to green innovation. Drawing on the stakeholder theory and Supplies-values Fit Theory, this study explored the mediating role of green HRM practices on the relationship between consumer pressure and green innovation under the moderating effect of individual green values. By using the quantitative research design, the data for the study were gathered from 257 manufacturing SMEs in India and analyzed using hierarchical regression analysis (PROCESS Macro) in SPSS. Empirical findings show that consumer pressure is positively associated with green innovation through green HRM practices which increase when the firm's employees have stronger individual green values. Thus, this study expands our understanding of consumer pressure toward green innovation and its underlying mechanism and conditional effect. Toward the end, the theoretical and practical implications are discussed.