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Previous studies have focused on the effect of national culture on green innovation. However, very few empirical studies have examined the roles of government in nurturing cultures that value green innovation. The main objective of this research is to investigate the effects of both national culture and government effectiveness on green innovations in emerging and developed economies. We conduct tests with and without government effectiveness as a moderating variable to validate the role of government in promoting green innovation. We also conduct robustness tests using business confidence variables to verify the government's effectiveness in encouraging investment across high- and low-corruption samples. In the second part of this research, we aim to cross-validate the roles of government in cultivating green innovation through an open-ended interview. The sample comprises 836 firm-year observations from emerging economies and 1752 from developed economies, spanning 2015 to 2018. Our results are mixed regarding the effect of power distance (a proxy for national culture) on green innovation in the emerging and developed economies. In general, we find that power distance reduces society's inclination to engage in green innovation. Government effectiveness is paramount in reforming the national culture towards greater engagement in green innovation. It acknowledges the importance of government transparency and accountability in developing a national culture that values innovation. In the second part of the analysis, using a triangulation approach by conducting open-ended interviews, we found that the regulatory framework and infrastructure are distinct factors that drive green innovation.
Roseli et al. (Wed,) studied this question.