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EMAC 2024 Annual


Open to be sustainable: External knowledge sourcing to achieve environmental innovation performance
(A2024-119582)

Published: May 28, 2024

AUTHORS

Chenyue Qi, Trinity Business School; Xiaoning Liang, Trinity Business School

ABSTRACT

Building on instrumental stakeholder theory, this study aims to explore whether and under what conditions a firm’s external knowledge sourcing influences its environmental innovation performance. Specifically, this study examines the moderation effects of two firm-specific factors (i.e., cohesiveness and entrepreneurial orientation) and one contextual factor (i.e., technological turbulence) on the external knowledge sourcing-environmental innovation relationship. Based on survey data collected from 233 Irish companies, the partial least square structural equation modelling analysis results show that deeper external knowledge souring leads to higher environmental innovation performance. In addition, cohesiveness and technological turbulence positively moderate the effect of external knowledge sourcing on environmental innovation performance, while entrepreneurial orientation negatively moderates such an effect. This study contributes to open innovation and environmental sustainability literature by confirming the positive effect of external knowledge sourcing activities on environmental innovation performance and uncovering both positive moderating effects of cohesiveness as well as negative moderating effect of entrepreneurial orientation on such an effect. Moreover, we advance instrumental stakeholder theory by unveiling both firm-specific and contextual factors – cohesiveness and technological turbulence – that reinforce the benefits of external knowledge sourcing activities in shaping environmental innovation performance. Findings provide critical directions for practitioners to follow when engaging in external knowledge sourcing activities and seeking solutions for addressing complex environmental sustainability challenges.