Green product innovation, green dynamic capability, and competitive advantage: Evidence from Chinese manufacturing enterprises

Abstract This study focuses on how green product innovation affects green dynamic capability and competitive advantage in the Chinese manufacturing industry. The empirical research indicates that green product innovation is positively correlated with both competitive advantage and green dynamic capability, whereas green dynamic capability also has a significant impact on competitive advantage. Furthermore, this paper finds that the resource integration capability, resource reconfiguration capability, and environmental insight capability of green dynamic capability play intermediary roles between green product innovation and competitive advantage. Corporate reputation positively moderates the relationship between green product innovation and resource integration capability and positively moderates the relationship between green product innovation and resource reconfiguration capability, whereas there is no moderating effect between green product innovation and environmental insight capability.