Fostering green product innovation through green entrepreneurial orientation: The roles of employee green creativity, green role identity, and organizational transactive memory system

Abstract Developing new green products is critical to an organization's achievement of sustainable goals as well as competitive advantage. This study aims to unravel the mechanisms through which organizations with green entrepreneurial orientation (green EO) can foster green product innovation. The dataset for testing these mechanisms was garnered from employees and managers who worked in manufacturing firms based in an Asia‐Pacific market. Through a multilevel analysis of the data, the study revealed the positive nexus between organizational green EO and green product innovation. The results of the study further lent credence to employee green creativity as a mediation path for such a relationship. Furthermore, employee green role identity and organizational transactive memory system were found to fortify the linkage between green EO and employee green creativity. These results suggest to organizations how to optimally translate their green entrepreneurial strategy into new green products that met customer preferences and societal expectations.