The Role of Green Management Practices on Product and Process Innovation: The Moderating Effect of Human Capital

Abstract

This study aims to measure the effect of green management practices on product and process innovation in some ASEAN (Association of Southeast Asian Nations) countries. Additionally, this study also investigates the moderating role of human capital through managers’ experience and training activities in the relationship between green management practices and innovation. In this context, the analysis is performed utilising data from the World Bank Enterprise Survey with 2,737 observations in manufacturing industry sectors in four ASEAN countries, including Singapore, Vietnam, Cambodia and the Philippines. The empirical investigation uses multilevel mixed-effects logit regression and the propensity score matching technique to account for the endogeneity problem. The results found that green management practices are positively associated with both product and process innovation. Training also positively impacts innovation; however, managers’ experience has no direct effect on firms’ innovation. Moreover, training and managers’ experience positively moderate the relationship between green management practices and innovation.