Public policy and sustainability: How green core competence, government trust, and policy satisfaction influence green R&D investments in the private sector

Fadi Abdelfattah; Mohammed Salah; Khalid Dahleez; Riyad Darwazeh; Hussam Al Halbusi

Sustainable Futures (Jun 2025)

Public policy and sustainability: How green core competence, government trust, and policy satisfaction influence green R&D investments in the private sector

Fadi Abdelfattah,
Mohammed Salah,
Khalid Dahleez,
Riyad Darwazeh,
Hussam Al Halbusi

Affiliations

Fadi Abdelfattah: Department of Business and Economics, Modern College of Business and Science (MCBS), Oman; Corresponding authors.
Mohammed Salah: Management Department, College of Business Administration (COBA), A'Sharqiyah University (ASU),Ibra, Oman. & Strategic Studies Centre, University of Karbala, Karbala, Iraq; Corresponding authors.
Khalid Dahleez: Management Department, College of Business Administration (COBA), A'Sharqiyah University (ASU), Ibra, Oman
Riyad Darwazeh: Head of Accounting Department, Business School, Al-Ahliyya Amman University, Amman, Jordan
Hussam Al Halbusi: College of Commerce and Business (CCB), Lusail University, Jabal Thuaileb P.O. Box 9717, Lusail, Qatar; Business Administration Department, College of Business Administration, Al-Bayan University, Airport St, Baghdad, Baghdad Governorate, Iraq

Journal volume & issue: Vol. 9
p. 100461

Abstract

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This study examines how green innovation practices influence organizational capabilities and investments in sustainability within Omani firms. Grounded in Dynamic Capabilities Theory and Institutional Theory, it explores the relationship between Green Product Innovation Performance (GPIP), Green Process Innovation Performance (GPcIP), Green Core Competence (GCC), and Green Research and Development (R&D) Investments. Data collected from 214 top management personnel across diverse industries in Oman were examined via Structural Equation Modeling. The findings reveal that GPIP positively affects GCC, indicating that firms excelling in green product innovation enhance their strategic environmental capabilities. Conversely, GPcIP does not significantly impact GCC, suggesting that process innovations may need integration with broader strategies to influence core competencies effectively. GCC positively influences Green R&D Investments, showing that firms with solid environmental capabilities are more likely to finance sustainable innovation. Moreover, Trust in Government (TG) and Satisfaction with Sustainability Government Policies (SWGM) significantly moderate the relationships between GPIP, GPcIP, GCC, and Green R&D Investments. High levels of trust and satisfaction amplify these positive effects, highlighting the crucial role of a supportive institutional environment in fostering sustainable innovation. The study contributes to theoretical frameworks by integrating internal capabilities with external institutional factors within the context of sustainability, thereby bridging gaps between Dynamic Capabilities Theory and Institutional Theory. Practically, it suggests that firms should focus on green product innovation and develop GCC, while policymakers should foster trust and satisfaction through transparent and supportive policies to encourage green R&D investments.

Published in Sustainable Futures

ISSN: 2666-1888 (Online)
Publisher: Elsevier
Country of publisher: United Kingdom
LCC subjects: Geography. Anthropology. Recreation: Environmental sciences; Technology
Website: https://www.journals.elsevier.com/sustainable-futures/

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