Nudging Toward Internal and External Origin Drivers: A Review of Corporate Green Innovation Research

Abstract

Corporate green innovation has undergone mountainous growth during the last decade, which has led to an essential accumulation of knowledge in the recent literature. This study conducts a systematic literature review of green innovation research in business economic discipline to understand corporate green innovation’s internal and external origin drivers. We explored the drivers, mediating and moderating effects, and consequences of individual conceptual frameworks following internal and external origins. Using a systematic literature review (SLR) and a content analysis approach, the PRISMA model included 91 published research articles for the review. The findings reveal the following critical conclusions: (a) both internal origin and external origin drivers stimulate the development of corporate green innovation; (b) the internal origin drivers are particularly more relevant in developing proactive and reactive green product and process innovation, whereas external origin drivers foster the development of reactive green innovations; however, (c) the role of corporate board is crucial in navigating and mitigating external origin uncertainties through building strategic goals and actively engaging with top management team based on firm-specific capabilities and resources for proactive green innovation development. This is the first systematic review to adapt a comprehensive content analysis approach to uncover internal and external origin drivers of green innovation under resource dependence theory and its complementary notions in comparison to notable business management theories. The findings of the review paper highlight various future research opportunities and practical implications for firms opting for green innovation development.