Green exploration and exploitation: Capabilities, product advantage, and policy considerations

While sustainability has been identified as a critical driver of innovation, our understanding green innovation activities interrelationship with capability antecedents and consequences both exploration exploitation remains unclear. A preliminary framework is developed to guide hypotheses provide insights into its connections new product advantage from Resource-Advantage (R-A) perspective. sample 197 traditional Chinese manufacturing enterprises conducting an input structural equation model. The results indicate that direct positive effects on innovative eco-friendly products' customer satisfaction differentiation, whereas only positively impacts differentiation. Importantly, fully mediates the between (i.e., technology market capability) differentiation). By contrast, Our findings shed light research shapes activities. Further, it contributes greater clarity how translate their capabilities advantage. Moreover, suggest implications for manufacturers become “green competitive” well offer policy-makers shaping programs assist innovation.