Organization capital and green innovation: Evidence from China

Abstract We investigate the impact of organization capital on green innovation. Using the sample of Chinese A‐share listed firms from 2008 to 2020, we find evidence that the organization capital significantly improves green innovation. And this effect is more pronounced in firms with greater environmental regulatory pressure, more media attention, less financing constraints and in non‐state‐owned firms. Through simultaneous equation model and mediation analysis, we find that organization capital improves corporate social responsibility via green innovation. Our results are robust to endogeneity issues, alternative variables measurement, model specifications, and estimation methods. This paper contributes to the understanding of the role of organizational resources in influencing green innovation and corporate social responsibility, and helps promote corporate green transformation and environmental practices.