Towards green growth capability development: A knowledge-based perspective

Journal article

Baranova, P., Waheed, H. and Paterson, F. 2025. Towards green growth capability development: A knowledge-based perspective. Business Strategy and the Environment. https://doi.org/10.1002/bse.4284
AuthorsBaranova, P., Waheed, H. and Paterson, F.
Abstract

Green growth, which balances a firm’s growth aspirations with environmental stewardship, is gaining traction in the literature. However, the notion of green growth capability (GGC) as a foundation for firm-level green growth strategy remains underexplored. Multifaceted and multi-skills nature of organisational capabilities is brought into focus to advance a knowledge-based view and to develop a new GGC scale. A robust scale development process was employed, including expert insights and a scoping review to establish content and face validity. A primary survey of 280 firms in the UK Midlands green market niches was undertaken. Exploratory and confirmatory factor analysis demonstrated construct validity and reliability revealing three main skill groupings necessary for GGC development: environmental impact minimisation, business development, and green growth stewardship skills. A two-step structural equation modeling (SEM) approach confirmed the scale’s nomological and predictive validity. This study advocates for a green growth capability development approach to the design and implementation of policy mixes which support capacity building for sustainable regional development.

Keywordscapability development; firm size; green growth; knowledge-based view; skills; sustainable regional development
Year2025
JournalBusiness Strategy and the Environment
PublisherWiley
ISSN0964-4733
Digital Object Identifier (DOI)https://doi.org/10.1002/bse.4284
Web address (URL)https://onlinelibrary.wiley.com/journal/10990836
Accepted author manuscript
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File Access Level
Open
Output statusPublished
Publication dates
Online26 Apr 2025
Publication process dates
Accepted25 Mar 2025
Deposited10 Apr 2025
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