Proactive environmental strategy, innovation capability, and stakeholder integration capability: A mediation analysis

Abstract This study investigates the underlying mechanisms through which proactive environmental strategy develops organizational capabilities. The results of a survey of publicly listed companies in China reveal that proactive environmental strategy has a more positive influence on stakeholder integration capability than on innovation capability. Moreover, organizational learning plays a greater role in mediating the effect of proactive environmental strategy on innovation capability than on stakeholder integration capability, whereas cross‐functional coordination plays a greater role in mediating its effect on stakeholder integration capability than on innovation capability. These findings provide important implications on organizational capability building via proactive environmental strategy.