The Indirect Effect of Knowledge Integration in Improving Financial Performance through Green Innovation

Green innovations and productions are critical to improving environmental performance and sustainability. The complex process involved in green innovations has a steep learning curve, but navigation has become critical for companies engaged in green operations. Knowledge plays a critical role the process of innovation. In this study, we propose a framework to investigate the effect of integration of internal and external knowledge processes in improving green innovation and financial performance in the end. Based on the theory of organizational learning and dynamic capabilities, our empirical analysis of 231 Chinese companies shows that the impact of the company's knowledge process integration on environmental performance is achieved through its green product innovation and process innovation. This research makes a huge effort to find ways to improve green innovation and financial performance. The results provide practitioners with useful management implications on how to successfully manage resources to improve green innovation and achieve the expected benefits