Green Nudging Architecture, Green Innovation Self‐Efficacy, and Eco‐Innovation Performance: The Moderating Role of Strategic Agility

ABSTRACT Based on the application of choice architecture, behavioral influence and low‐cost intervention, green nudging architecture (GNA) has been identified as a promising lever to increase the corporate eco‐innovation performance (CEIP). However, the psychological process behind the link among GNA‐eco‐innovation outcomes is not well understood, and past studies have largely looked at the three streams of behavioral, innovation and strategic management aspects of the link separately, rather than combining them into a unified model. This theory‐practice disconnect not only restricts knowledge of how and when GNA works in practice, but also hinders managers' effectiveness when working with it. To fill this void, the present paper builds and tests an integrated framework based on self‐efficacy theory (SET) and dynamic capabilities theory (DCT) that views green innovation self‐efficacy (GISE) as a mediator among GNA‐CEIP, and strategic agility (SA) as a boundary condition. Hypotheses were validated with two‐wave survey data from 312 respondents of renewable energy manufacturing companies in Pakistan. Results show that GNA positively predicts GISE, and GISE partially mediates the effects of GNA on all 3 dimensions of CEIP. Furthermore, the moderating effect of the strategic agility (SA) dimensions is different: the market sensing (MS) dimension strengthens the GNA–GISE link, and the resource fluidity (RF) dimension weakens it. This study contributes to the understanding of the GNA–CEIP link by revealing and explaining the mediating role of GISE in the link. Conceptually, it is one of the first to combine the theories of behavioral science (GNA), innovation management (CEIP), and strategic management (SA) in one. Conceptually, it is among the first that bridges the theories of behavioral science (GNA), innovation management (CEIP) and strategic management (SA) in one. Empirically, it provides new evidence of the opposite effect of strategic agility dimensions, which goes against the generally accepted notion that agility always intensifies behavioral interventions. In practical terms, the results provide guidance to manufacturers in emerging economies on developing nudging architectures and configuring agility capabilities to stimulate eco‐innovation.