Key drivers of green innovation: internal resources, external pressures and dynamic capabilities

Purpose This study examines the effects of internal resources, external pressures and dynamic capabilities on green innovation and identifies their type-specific factors, focusing on green product innovation and green process innovation in Malaysia. Design/methodology/approach Given the presence of multiple potential factors, we employed Bayesian Model Averaging for linear regression, which is effective for handling uncertainty in variable selection using multiple models. In addition, we used ordinary least squares regression for checking the results’ robustness. Findings By analyzing survey data from 150 firms, the results of Bayesian linear regression indicate that external networks and external knowledge are key drivers of green innovation (GI), both in general and for each type of innovation. However, their relative importance is different, depending on the type - external networks have a strong effect on green product innovation (GPDI), but only a weak effect on green process innovation (GPCI). Technological advantage strongly affects GPDI, while organizational support has a moderate effect on GPCI. Originality/value Based on an integrative framework, this study provides a comprehensive understanding of how internal, external and dynamic factors influence green innovation and also highlights the significance of their type-specific dynamics. The results further emphasize the crucial role of government policies in promoting collaboration and strategic partnerships, through initiatives that enhance and support research and development activities.