Can Technological and Customer Competencies Enable the Firm to Be Greener? Simultaneous Consideration of Resource-Based View and Social License to Operate

Abstract

This research explores the contribution of firm competencies and green management practices to enhancing a firm's sustainable performance. It examines the effects of technological competencies (TC) and customer competencies (CC) through the lens of a competence-based view (CBV) framework, particularly focusing on their influence on green supply chain management (GSCM) and green innovation (GI), along with the subsequent impact on environmental performance (EP). Additionally, the study examines the moderating role of the social license to operate (SLO) in the relationship between firm competencies, green management practices, and sustainable performance, highlighting its strategic necessity in mitigating conflicts and sustaining moral legitimacy within a developed country context. Utilizing partial least squares structural equation modeling (PLS-SEM), the study analyzes data from 213 Korean companies. The results demonstrate that both TC and CC have a positive effect on green management practices. Furthermore, both GI and GSCM contribute to improved EP. Although it is theorized that SLO can play a moderating role within this dynamic, the results find insignificant effects, with the exception of the relationship between TC and GSCM. These findings provide valuable insights to both policymakers and business managers by highlighting the role of firm competencies and SLO.