Social ties, absorptive capacity, and the adoption of green innovation: a social capital perspective

Purpose: The purpose of this study is to examine how social ties (i.e. business ties and political ties) affect the adoption of green innovation in the context of emerging economies, separately and comparatively. In addition, this study also seeks to examine how absorptive capacity shapes the relationships between social ties and the adoption of green innovation. Design/methodology/approach: A theoretical model with hypothesized relationships is proposed and tested using regression in SPSS. This study’s sample consists of a dataset covering 272 Chinese firms (based on a total of 544 respondents) operating in various industries with two key informants in each firm. Findings: The authors find that business ties and political ties both facilitate the adoption of green innovation, whereas business ties influence the adoption more strongly than political ties do. This study’s findings also show that absorptive capacity strengthens the positive relationships between the two types of social ties and the adoption of green innovation. Originality/value: Although scholarship has amply documented the role that social ties play in influencing corporate performance, few studies have considered how and under what conditions these ties can impact the adoption of green innovation. Overall, the authors add value to the environmental management and social capital literature by providing novel insights into the differential roles that business ties and political ties play in the adoption of green innovation under the influence of absorptive capacity.