Does the nexus of corporate social responsibility and green dynamic capabilities drive firms toward green technological innovation? The moderating role of green transformational leadership

Abstract

Dynamic organizations actively capitalize on social responsibility (CSR) and environmental recovery strategies, considering social and ecological challenges. However, how CSR-committed firms respond to changing environmental technologies and sense critical social and environmental trends is unknown. This study examines the role of CSR in developing green dynamic capabilities (GDC) of organizations, including resource reconfiguration, integration, and environmental insight capabilities, and it explains whether they strengthen organizational green technological innovation (GTI) performance. Specifically, it takes green transformational leadership (GTL) as the moderating variable in the relationship between GDC and GTI. The data collected from 295 manufacturing managers analyzed through linear regression and structural equation modeling indicated that CSR-committed firms have significant capability to integrate and reconfigure green resources and environment insight capability, leading toward improved GTI. The study establishes that GTL bolsters the relationship between resource integration and environmental insights aspects of GDC and GTI; while insignificant relationship exists for resource reconfiguration. Considering their pivotal green transformative role, it suggests that organizational leaders should prioritize sustainability, inspire vision, empower employees, and foster a culture of innovation to leverage the organizational GDC to boost GTI and concludes with policy implications.