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Analysis demonstrates that negative performance feedback influences green innovation, highlighting TMT human capital's impact.
The question of whether negative performance feedback (NPF) inhibits or promotes green innovation remains unresolved. We argue that a significant source of controversy in existing research lies in the failure to consider the multiple sources of NPF and the role of top management team (TMT) multi‐dimensional human capital. Drawing on the behavioral theory of the firm and upper echelons theory, this study classifies corporate green innovation into substantive and symbolic green innovation based on innovation motivations. It focuses on how the scope of negative performance feedback (SNPF) influences the choice of corporate green innovation strategy, while also considering the moderating effect of TMT multi‐dimensional human capital. The empirical results reveal that the SNPF has a differential impact on symbolic and substantive green innovation. Specifically, the SNPF diminishes substantive green innovation while promoting symbolic green innovation. Furthermore, in testing the moderating effects, we find that the TMT's technical background, overseas experience, and education level can amplify the positive effect of SNPF on symbolic green innovation and mitigate its negative effect on substantive green innovation. Our research demonstrates that the SNPF is a key antecedent in determining the strategic choice of green innovation, offering valuable insights for both corporate management practices and government policies.
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Tang et al. (2025) studied this question.
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