Examining Cognitive and Social Proximities’ Influence on Cluster Firms’ Green Technological Innovation

Abstract

Green technological innovation (GTI) has the dual externalities of promoting technological advancements and facilitating environmental protection. GTI assists manufacturing clusters respond to emission reduction and environmental protection challenges. Non-geographic proximity is vital in promoting knowledge sharing among organizations, facilitating GTI’s effective implementation; in this regard, a gap exists in the current literature. Using data from 330 cluster firms in China’s fine chemical industry and drawing on the knowledge-based view, this study explores how cognitive and social proximities affect GTI in cluster firms. The key findings are as follows: First, cognitive and social proximities are crucial factors driving GTI. Second, knowledge sharing mediates the relationship between proximity and GTI. Third, technological distance positively moderates the relationship between social proximity and green product innovation, and that between social proximity and end-of-pipe technological innovation. These findings have critical implications for cluster firms looking to cultivate network relationships based on distinct types of GTI.