Does proactive boundary‐spanning search drive green innovation? Exploring the significance of green dynamic capabilities and analytics capabilities

Abstract Successful innovation requires firms to search beyond their organizational confines for complementary knowledge resources ahead of their competitors. While such proactive boundary‐spanning search (PBS) provides relevant knowledge resources for green innovations, it can also lead to information overload that derails green innovation efforts. Therefore, there is a need to understand how and when PBS translates into green innovation. This study combines the dynamic capabilities theory with the organizational information processing theory to develop a moderated mediation model that espouses the role of green dynamic capability and analytics capability in the relationship between PBS and green innovation. The study's hypothesis is tested using firm‐level survey data from 200 manufacturing firms in Ghana. Partial least squares structural equations modeling (PLS‐SEM) and PROCESS were used to evaluate the research model. The results confirm a positive relationship between PBS and green dynamic capabilities, and also between green dynamic capabilities and green innovation. More importantly, PBS drives green innovation through green dynamic capability, particularly at moderate and high levels of analytics capability. The theoretical and managerial implications of the study are outlined in the text.