Green innovation: how firms leverage capabilities, resources and complementary assets

Abstract

Environmental issues are critical for business either as a constraint or an opportunity. Hence, they should be addressed by firms as a strategic priority integrated in their operations strategy. In order to do so, firms need to develop green capabilities and assets that support their green strategies. This paper discusses the green capabilities necessary to develop green innovation initiatives. It presents a framework that structures the relationship between drivers of green operations strategies, firms’ resources and green innovation as a source of competitive advantage. Case study research is used to support and extend the framework. Case study evidences validate the framework, provide additional insights and suggest new lines of research on these topics.