Harnessing intellectual capital for green innovation through entrepreneurial orientation

Abstract

Purpose: While green entrepreneurship has attracted growing attention, its connection to green innovation (GI) remains ambiguous. This study aims to examine the effect of green entrepreneurial orientation (GEO) on GI and investigates the moderating role of intellectual capital (IC) in this relationship within the context of large manufacturing firms in Yemen, a less-developed country. Design/methodology/approach: A survey-based approach was employed to collect data from 177 managers of large Yemeni manufacturing firms. Hierarchical regression analysis using SPSS with PROCESS Macro was employed to test the hypothesized links. Findings: The results revealed that GEO positively influences GI, particularly through its dimensions of green product innovation (GProdI) and green process innovation (GProcI), with a higher effect on GProcI. Importantly, IC significantly moderates these relationships. Specifically, high IC amplifies the GEO-GProdI link but stabilizes the GEO-GProcI link, suggesting IC's dual role in fostering GI dimensions. Research limitations/implications: This study is constrained by its focus on a single country and its reliance on self-reported cross-sectional data. Future research could enhance generalizability by adopting longitudinal designs and exploring various geographical and economic settings to confirm these findings. Practical implications: The research demonstrated that a company's possession of IC is important to enhance the full potential of GEO to improve innovation performance. This finding is crucial for decision-makers facing the challenges of allocating resources optimally. Originality/value: By integrating GEO, IC and GI within the Natural Resource-Based View (NRBV) framework, this study advances the understanding of sustainability drivers in less-developed countries. It highlights IC as a critical resource for leveraging GEO to enhance GI, providing actionable insights for managers and policymakers aiming to foster GI.