Impact of knowledge base and knowledge distance on firm′s green innovation

Abstract

Abstract: In the process of firm development in China, the problem of environmental damage has become increasingly serious. Under this background, "Made in China 2025" takes firms green innovation as the key to solve environmental problems. Therefore, how can firms better achieve green innovation has become a hot topic of academic research.
This paper studies the impact of the interaction effects between knowledge base and knowledge distance on firms′ green innovation, and the moderating effect of network density on the relationship between them, by using a panel data of 106 listed Chinese manufacturing firms during the period of 2009 to 2018 and employing multivariate regression model. It supposes that the diversified knowledge base has positive effects on firms′ green innovation in alliance networks with a short knowledge distance. The specialized knowledge base has positive effects on firms′ green innovation in alliance networks with a long knowledge distance. Low-density networks have an inhibitory effect on the interaction effects of the specialized knowledge base and the long knowledge distance, yet enhance the interaction effects of the specialized knowledge base and the short knowledge distance. High-density networks enhance the interaction effects of the specialized knowledge base and the long knowledge distance, and the interaction effects of the diversified knowledge and the short knowledge distance. The moderating effect of low-density networks can persist yet the moderating effect of high-density networks will evade over time.
Our findings reveal that firms′ knowledge base, knowledge distance in alliances and network density of alliances can have a differential impact on firms′ green innovation. The multi-dimensional combination of the above three factors is the key to achieve the ideal green innovation effect. Compared with embedding in alliances with a long knowledge distance, firms with diversified knowledge base are more conducive to green innovation when they embedded in alliances with a short knowledge distance. For the interaction effects of knowledge base and knowledge distance on firms′ green innovation, network density have a moderating effect on them. There is time difference in moderating effect.
The theoretical contributions of this paper are as follows: (1) By adopting the contingency combination strategy, two kinds of best combination configurations are formed to support green innovation, and reveal the impact of the interaction effects between knowledge base and knowledge distance on firms′ green innovation from both inside and outside the organization. (2) The loose and close dynamic change of network density is brought into the research framework of firms′ green innovation, and the moderating effect of network density on the interaction effects of knowledge base and knowledge distance on firms′ green innovation is clarified. (3) By introducing social network theory and knowledge management theory that are widely used in general innovation research into firms′ green innovation research, this paper expands the research thinking of the firms′ green innovation, and promotes the proliferation of mature theoretical achievements about social network and knowledge management from general innovation to green innovation research.
This paper can reveal the mechanism of firms′ green innovation and the best knowledge and network configuration with different situation, and provide a theoretical reference for improving the effect of firms′ green innovation.

Key words: knowledge base, knowledge distance, network density, green innovation

Yu Fei, Yuan Shengjun, Hu Zemin. Impact of knowledge base and knowledge distance on firm′s green innovation[J]. Science Research Management, 2021, 42(1): 100-112.

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