Skip to main content

Advertisement

Log in

The Determinants of Green Product Development Performance: Green Dynamic Capabilities, Green Transformational Leadership, and Green Creativity

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

Because no previous literature discusses the determinants of green product development performance, this study develops an original framework to fill the research gap. This study explores the influences of green dynamic capabilities and green transformational leadership on green product development performance and investigates the mediation role of green creativity. The results demonstrate that green dynamic capabilities and green transformational leadership positively influence green creativity and green product development performance. Besides, this study indicates that the positive relationships between green product development performance and their two antecedents—green dynamic capabilities and green transformational leadership—are partially mediated by green creativity. It means that green dynamic capabilities and green transformational leadership can not only directly affect green product development performance positively but also indirectly affect it positively via green creativity. Hence, companies have to increase their green dynamic capabilities, green transformational leadership, and green creativity to enhance their green product development performance.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2

Similar content being viewed by others

References

  • Albino, V., Balice, A., & Dangelico, R. M. (2009). Environmental strategies and green product development: An overview on sustainability-driven companies. Business Strategy and the Environment, 18(2), 83–96.

    Article  Google Scholar 

  • Amabile, T. M. (1988). A model of creativity and innovation in organization. Behavior, 10, 123–167.

    Google Scholar 

  • Amabile, T. M., Conti, R., Coon, H., Lazenby, J., & Herron, M. (1996). Assessing the work environment for creativity. Academy of Management Journal, 39(5), 1154–1184.

    Article  Google Scholar 

  • Andriopoulos, C. (2001). Determinants of organisational creativity: A literature review. Management Decision, 39(10), 834–840.

    Article  Google Scholar 

  • Arora, R. (2002). Implementing KM—A balanced scorecard approach. Journal of Knowledge Management, 6(3), 240–249.

    Article  Google Scholar 

  • Avolio, B. J., Bass, B. M., & Jung, D. I. (1999). Re-examining the components of transformational and transactional leadership using the Multifactor Leadership Questionnaire. Journal of Occupational and Organizational Psychology, 72, 441–462.

    Article  Google Scholar 

  • Bain, P., Mann, L., & Pirola-Merlo, A. (2001). The innovation imperative: The relationships between team climate, innovation, and performance in research and development teams. Small Group Research, 32(1), 55–73.

    Article  Google Scholar 

  • Barczak, G., Lassk, F., & Mulki, J. (2010). Antecedents of team creativity: An examination of team emotional intelligence, team trust and collaborative culture. Creativity and Innovation Management, 19(4), 332–345.

    Article  Google Scholar 

  • Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.

    Article  Google Scholar 

  • Bass, B. M. (1985). Leadership and performance beyond expectations. New York: Free Press.

    Google Scholar 

  • Bass, B. M. (1998). Transformational leadership: Industrial, military, and educational impact. Mahwah, NJ: Erlbaum.

    Google Scholar 

  • Bass, B. M., & Avolio, B. J. (1990). The implications of transactional and transformational leadership for individual, team, and organizational development. Research in Organizational Change and Development, 4, 231–272.

    Google Scholar 

  • Bhat, V. N. (1993). A blueprint for green product development. Industrial Management, 35(2), 4–7.

    Google Scholar 

  • Chang, C.-H. (2011). The influence of corporate environmental ethics on competitive advantage: the mediation role of green innovation. Journal of Business Ethics, 104(3), 361–370.

    Article  Google Scholar 

  • Chang, S.-C., Tein, S.-W., & Lee, H.-M. (2010). Social capital, creativity, and new product advantage: An empirical study. International Journal of Electronic Business Management, 8(1), 43–55.

    Google Scholar 

  • Chen, C. (2001). Design for the environment: A quality-based model for green product development. Management Science, 47(2), 250–263.

    Article  Google Scholar 

  • Chen, Y.-S. (2008a). The driver of green innovation and green image—Green core competence. Journal of Business Ethics, 81(3), 531–543.

    Article  Google Scholar 

  • Chen, Y.-S. (2008b). The positive effect of green intellectual capital on competitive advantages of firms. Journal of Business Ethics, 77(3), 271–286.

    Article  Google Scholar 

  • Chen, Y.-S. (2010). The drivers of green brand equity: green brand image, green satisfaction, and green trust. Journal of Business Ethics, 93(2), 307–319.

    Article  Google Scholar 

  • Chen, Y.-S. (2011). Green organizational identity: Sources and consequence. Management Decision, 49(3), 384–404.

    Article  Google Scholar 

  • Chen, Y.-S., & Chang, C.-H. (2012). Enhance green purchase intentions: The roles of green perceived value, green perceived risk, and green trust. Management Decision, 50(3), 502–520.

    Article  Google Scholar 

  • Chen, Y.-S., Lai, S.-B., & Wen, C.-T. (2006). The influence of green innovation performance on corporate advantage in Taiwan. Journal of Business Ethics, 67(4), 331–339.

    Article  Google Scholar 

  • Cheung, M. F. Y., & Wong, C.-S. (2011). Transformational leadership, leader support, and employee creativity. Leadership & Organization Development Journal, 32(7), 656–672.

    Article  Google Scholar 

  • Clark, K., & Fujimoto, T. (1991). Product development performance. Cambridge, MA: Harvard Business School Press.

    Google Scholar 

  • Collis, D. J. (1994). How valuable are organizational capabilities? Strategic Management Journal, 15(1), 143–152.

    Article  Google Scholar 

  • Cooper, R. G. (1979). The dimensions of industrial new product success and failure. Journal of Marketing, 43, 93–103.

    Article  Google Scholar 

  • Deshpandé, R., Farlet, J. U., & Webster, F. E. (1993). Corporate culture, customer orientation, and innovativeness in Japanese firms: A quadrad analysis. Journal of Marketing, 57, 23–37.

    Article  Google Scholar 

  • Edmondson, A. C., & Nembhard, I. M. (2009). Product development and learning in project teams: The challenges are the benefits. Journal of Production Innovation Management, 26, 123–138.

    Article  Google Scholar 

  • Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21, 1105–1121.

    Article  Google Scholar 

  • Elkins, T., & Keller, R. T. (2003). Leadership in research and development organizations: A literature review and conceptual framework. Leadership Quarterly, 14, 587–606.

    Article  Google Scholar 

  • Ford, C. M. (1996). A theory of individual creative action in multiple social domains. Academy of Management Review, 21, 1112–1142.

    Google Scholar 

  • Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.

    Article  Google Scholar 

  • Galunic, D. C., & Eisenhardt, K. M. (2001). Architectural innovation and modular corporate forms. Academy of Management Journal, 44(6), 1229–1249.

    Article  Google Scholar 

  • Gardner, W. L., & Avolio, B. J. (1998). The charismatic relationship: A dramaturgical perspective. Academy of Management Review, 23, 32–58.

    Google Scholar 

  • Ginsberg, J. M., & Bloom, P. N. (2004). Choosing the right green marketing strategy. MIT Sloan Management Review, 46(1), 79–84.

    Google Scholar 

  • Gong, Y., Huang, J.-C., & Farh, J.-L. (2009). Employee learning orientation, transformational leadership, and employee creativity: The mediating role of employee creative self-efficacy. Academy of Management Journal, 52(4), 765–778.

    Article  Google Scholar 

  • Griffin, A. (1997). The effect of project and process characteristics on product development cycle time. Journal of Marketing Research, 34, 24–35.

    Article  Google Scholar 

  • Griffin, A., & Page, A. L. (1996). PDMA success measurement project: Recommended measures for product development success and failure. Journal of Product Innovation Management, 13(6), 478–496.

    Article  Google Scholar 

  • Gumusluoglu, L., & Ilsev, A. (2009). Transformational leadership, creativity, and organizational innovation. Journal of Business Research, 62(4), 461–473.

    Article  Google Scholar 

  • Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998). Multivariate data analysis. Upper Saddle River, NJ: Prentice-Hall, Inc.

    Google Scholar 

  • Halbesleben, J. R. B., Novicevic, M. M., Harvey, M. G., & Buckley, M. R. (2003). Awareness of temporal complexity in leadership of creativity and innovation: A competency-based model. Leadership Quarterly, 14(4/5), 433–454.

    Article  Google Scholar 

  • Howell, J. M., & Avolio, B. J. (1993). Transformational leadership, transactional leadership, locus of control and support for innovation: Key predictors of consolidated-business-unit performance. Journal of Applied Psychology, 78, 891–902.

    Article  Google Scholar 

  • Hsu, Y.-H., & Fang, W. (2009). Intellectual capital and new product development performance: The mediating role of organizational learning capability. Technological Forecasting and Social Change, 76(5), 664–677.

    Article  Google Scholar 

  • Hunt, S. D., & Morgan, R. M. (1995). The comparative advantage theory of competition. Journal of Marketing, 59(2), 1–15.

    Article  Google Scholar 

  • Iansiti, M., & Clark, K. (1994). Integration and dynamic capability: Evidence from product development in automobiles and mainframe computers. Industrial and Corporate Change, 3(3), 557–605.

    Article  Google Scholar 

  • Jain, S. K., & Kaur, G. (2004). Green marketing: An Indian perspective. Decision, 31(2), 168–209.

    Google Scholar 

  • Jung, D. I. (2001). Transformational and transactional leadership and their effects on creativity in groups. Creativity Research Journal, 13, 185–195.

    Article  Google Scholar 

  • Jung, D. I., Chow, C., & Wu, A. (2003). The role of transformational leadership in enhancing organizational innovation: Hypotheses and some preliminary findings. Leadership Quarterly, 14(4–5), 525–544.

    Article  Google Scholar 

  • Kalafatis, S. P., & Pollard, M. (1999). Green marketing and Ajzen’s theory of planned behaviour: A cross-market examination. Journal of Consumer Marketing, 16(4/5), 441–460.

    Article  Google Scholar 

  • Keller, R. T. (1992). Transformational leadership and the performance of research and development project groups. Journal of Management, 18(3), 489–501.

    Article  Google Scholar 

  • Keller, R. T. (2006). Transformational leadership initiating structure, and substitutes for leadership: A longitudinal study of research and development project team performance. Journal of Applied Psychology, 91, 202–210.

    Article  Google Scholar 

  • Lee, H., & Kelley, D. (2008). Building dynamic capabilities for innovation: an exploratory study of key management practices. R & D Management, 38(2), 155–168.

    Article  Google Scholar 

  • Leonard-Barton, D. (1992). Core capabilities and core rigidities: A paradox in managing new product development. Strategic Management Journal, 13(7), 111–125.

    Article  Google Scholar 

  • Lippman, S. A., & Rumelt, R. P. (1982). Uncertain imitability: An analysis of interfirm differences in efficiency under competition. Bell Journal of Economics, 13, 418–438.

    Article  Google Scholar 

  • Makower, J. (2009). Strategies for the green economy: Opportunities and challenges in the new world of business. New York: McGraw-Hill.

    Google Scholar 

  • March, J. G. (1991). Exploration and exploitation in organizational learning. Organization Science, 2, 71–87.

    Article  Google Scholar 

  • Marsh, S. J., & Stock, G. N. (2006). Creating dynamic capability: The role of intertemporal integration, knowledge retention, and interpretation. Journal of Product Innovation Management, 23(5), 422–436.

    Article  Google Scholar 

  • Mumford, M. D. (2000). Managing creative people: Strategy and tactics for innovation. Human Resource Management Review, 10, 313–351.

    Article  Google Scholar 

  • Nancarrow, C., Brace, I., & Wright, L. T. (2001). Tell me lies, tell me sweet little lies: Dealing with socially desirable responses in market research. Marketing Review, 2, 55–69.

    Article  Google Scholar 

  • Nederhof, A. J. (1985). Methods of coping with social desirability bias: A review. European Journal of Social Psychology, 15, 263–280.

    Article  Google Scholar 

  • Pavlou, P. A., & El Sawy, O. A. (2011). Understanding the elusive black box of dynamic capabilities. Decision Sciences, 42(1), 239–273.

    Article  Google Scholar 

  • Phillips, D. L., & Clancy, K. J. (1972). Some effects of social desirability in survey studies. American Journal of Sociology, 77(5), 921–938.

    Article  Google Scholar 

  • Pirola-Merlo, A., & Mann, L. (2004). The relationship between individual creativity and team creativity: Aggregating across people and time. Journal of Organizational Behaviour, 25(2), 235–257.

    Article  Google Scholar 

  • Podsakoff, P. M., MacKenzie, S. B., & Bommer, W. H. (1996). Transformational leader behaviors and substitutes for leadership as determinants of employee satisfaction, commitment, trust, and organizational citizenship behaviors. Journal of Management, 22(2), 259–298.

    Google Scholar 

  • Podsakoff, P. M., MacKenzie, S. B., Moorman, R. H., & Fetter, R. (1990). Transformational leader behaviors and their effects on followers’ trust in leader, satisfaction, and organizational citizenship behaviours. Leadership Quarterly, 1(2), 107–142.

    Article  Google Scholar 

  • Porter, M. E., & van der Linde, C. (1995). Green and competitive. Harvard Business Review, 73(5), 120–134.

    Google Scholar 

  • Pujari, D., Wright, G., & Peattie, K. (2003). Green and competitive: Influences on environmental new product development performance. Journal of Business Research, 56(8), 657–671.

    Article  Google Scholar 

  • Randall, D. M., & Fernandes, M. E. (1991). The social desirability response bias in ethics research. Journal of Business Ethics, 10, 805–817.

    Article  Google Scholar 

  • Rego, A., Sousa, F., Cunha, M. P. E., Correia, A., & Saur-Amaral, I. (2007). Leader self-reported emotional intelligence and perceived employee creativity: An exploratory study. Creativity and Innovation Management, 16, 250–264.

    Article  Google Scholar 

  • Reiter-Palmon, R., & Illies, J. J. (2004). Leadership and creativity: Understanding leadership from a creative problem-solving perspective. Leadership Quarterly, 15, 55–77.

    Article  Google Scholar 

  • Roe, B., Teisl, M. F., Levy, A., & Russell, M. (2001). US consumers’ willingness to pay for green electricity. Energy Policy, 29(11), 917–925.

    Article  Google Scholar 

  • Sarros, J. C., Cooper, B. K., & Santora, J. C. (2008). Building a climate for innovation through transformational leadership and organizational culture. Journal of Leadership & Organizational Studies, 15(2), 145–158.

    Article  Google Scholar 

  • Schulze, W. (1994). The two schools of thought in resource-based theory: Definitions and implications for research. Advances in Strategic Management, 10(1), 127–152.

    Google Scholar 

  • Shamir, B., House, R. J., & Arthur, M. B. (1993). The motivational effects of charismatic leadership: A self-concept based theory. Organization Science, 4, 577–594.

    Article  Google Scholar 

  • Shin, S. J., & Zhou, J. (2003). Transformational leadership, conservation, and creativity: Evidence from Korea. Academy of Management Journal, 46, 703–714.

    Article  Google Scholar 

  • Shin, S. J., & Zhou, J. (2007). When is educational specialization heterogeneity related to creativity in research and development teams? Transformational leadership as a moderator. Journal of Applied Psychology, 92, 1709–1721.

    Article  Google Scholar 

  • Smith, P. G., & Reinertsen, D. G. (1992). Shortening the product development cycle. Research Technology Management, 35, 44–49.

    Google Scholar 

  • Sosik, J. J., Avolio, B. J., & Kahai, S. S. (1997). Effects of leadership style and anonymity on group potency and effectiveness in a group decision support system environment. Journal of Applied Psychology, 82, 89–103.

    Article  Google Scholar 

  • Teece, D., & Pisano, G. (1994). The dynamic capabilities of firms: An introduction. Industrial and Corporate Change, 3(3), 537–556.

    Article  Google Scholar 

  • Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18, 509–533.

    Article  Google Scholar 

  • Waldman, D. A., & Bass, B. M. (1991). Transformational leadership at different phases of the innovation process. Journal of High Technology Management, 2(2), 169–180.

    Article  Google Scholar 

  • Wang, P., & Rode, J. C. (2010). Transformational leadership and follower creativity: The moderating effects of identification with leader and organizational climate. Human Relations, 63(8), 1105–1128.

    Article  Google Scholar 

  • Winter, S. G. (2003). Understanding dynamic capabilities. Strategic Management Journal, 24, 991–995.

    Article  Google Scholar 

  • Woodman, R. W., Sawyer, J. E., & Griffin, R. W. (1993). Toward a theory of organizational creativity. Academy of Management Review, 18(2), 293–321.

    Google Scholar 

  • Wyer, P., Donohoe, S., & Matthews, P. (2010). Fostering strategic learning capability to enhance creativity in small service businesses. Service Business, 4(1), 9–26.

    Article  Google Scholar 

  • Yoon, S. W., Song, J. H., Lim, D. H., & Joo, B. K. (2010). Structural determinants of team performance: The mutual influences of learning culture, creativity, and knowledge. Human Resource Development International, 13(3), 249–264.

    Article  Google Scholar 

  • Zahra, S. A., Sapienza, H. J., & Davidsson, P. (2006). Entrepreneurship and dynamic capabilities: A review, model and research agenda. Journal of Management Studies, 43, 917–955.

    Article  Google Scholar 

  • Zhang, A. Y., Tsui, A. S., & Wang, D. X. (2011). Leadership behaviors and group creativity in Chinese organizations: The role of group processes. Leadership Quarterly, 22(5), 851–862.

    Article  Google Scholar 

Download references

Acknowledgments

The authors are grateful for the funding of National Science Council in Taiwan for this study, and the project number of this study is 101-2410-H-305-074-MY3.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Yu-Shan Chen.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Chen, YS., Chang, CH. The Determinants of Green Product Development Performance: Green Dynamic Capabilities, Green Transformational Leadership, and Green Creativity. J Bus Ethics 116, 107–119 (2013). https://doi.org/10.1007/s10551-012-1452-x

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-012-1452-x

Keywords

Navigation