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Although environmental regulations have been considered as important forces of conducting green innovation, how and under what conditions they affect green innovation are still unclear. Drawing from institutional theory, this study used survey data from 237 manufacturing firms in China to investigate how two dimensions of environmental regulations (i.e., command and control regulation and market‐based regulation) affect green product innovation and green process innovation. Further, this article examined the mediating role of external knowledge adoption and the moderating role of green absorptive capacity. Our results indicate that both command and control regulation and market‐based regulation have positive influences on external knowledge adoption. External knowledge adoption fully mediates these positive relationships. In addition, green absorptive capacity only strengthens the positive impact of market‐based regulation on external knowledge adoption. Our study contributes to institutional theory and green innovation literature.

Although the importance of external involvement has been recognized, under what conditions it is more effective is still unclear. To address this research gap, this study explores the moderating roles of three dimensions of environmental uncertainty on the relationship between external involvement and green product innovation based on contingency theory and organizational information processing theory. We examine the research hypotheses employing survey data collected from 198 Chinese manufacturing firms and using hierarchical moderated regression analyses. The results indicate that both customer involvement and supplier involvement have positive effects on green product innovation. Technological uncertainty strengthens the effects of customer involvement and supplier involvement on green product innovation. However, demand uncertainty fails to moderate the relationship between customer involvement and green product innovation, and supply uncertainty fails to moderate the relationship between supplier involvement and green product innovation. This study provides novel and fruitful research avenues for stakeholder involvement and suggests future directions.

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