Assessing the Relationship between Market Orientation and Green Product Innovation: The Intervening Role of Green Self-Efficacy and Moderating Role of Resource Bricolage

Environmental issues have gradually gained attention in the last decade because of increased global warming and high waste production. Therefore, this article aims to add value to the environment management research by analyzing green product innovation through market orientation. Moreover, this study includes green self-efficacy as a mediator, being less focused in the past literature to examine employees’ confidence in innovating green products according to customers’ needs. In addition, resource bricolage is also introduced as a moderator because fewer studies display the empirical results about organizations producing or tend to produce innovated green products with a limited number of resources. Data were collected from 477 employees of small and medium-sized enterprises using a self-administered questionnaire in Pakistan. Empirical results revealed by SmartPLS software delineate that market orientation has a positive and significant impact on green self-efficacy and green product innovation. Moreover, green self-efficacy shows a significant mediation impact between market orientation and green product innovation. Additionally, resource bricolage also moderates the relationship between market orientation and green product innovation. Overall, the study contributes to theoretical and practical knowledge about green product innovation in tackling the world’s environmental issues.