External involvement and green product innovation: The moderating role of environmental uncertainty

Abstract Although the importance of external involvement has been recognized, under what conditions it is more effective is still unclear. To address this research gap, this study explores the moderating roles of three dimensions of environmental uncertainty on the relationship between external involvement and green product innovation based on contingency theory and organizational information processing theory. We examine the research hypotheses employing survey data collected from 198 Chinese manufacturing firms and using hierarchical moderated regression analyses. The results indicate that both customer involvement and supplier involvement have positive effects on green product innovation. Technological uncertainty strengthens the effects of customer involvement and supplier involvement on green product innovation. However, demand uncertainty fails to moderate the relationship between customer involvement and green product innovation, and supply uncertainty fails to moderate the relationship between supplier involvement and green product innovation. This study provides novel and fruitful research avenues for stakeholder involvement and suggests future directions.