Green core competence and firm performance in a post-conflict country, Iraq

Green core competence theory proposes that green core competence is needed for green innovation performance and, in turn, firm performance. We demonstrate that this theory applies in post-conflict Iraq where green innovation performance was conditional on commitment to sustainable management and development of green technology and skills. Data from 238 Iraqi executives showed that green product and process innovation performance increased with green core competence, but only when the firm invested in people and R&D or, in the case of green process innovation, top management demonstrated authentic commitment to sustainable practices. The moderation effects of R&D investment and top management commitment reflect the national context in Iraq, where R&D investment is low and management is often constrained by inflexible bureaucracy. As countries emerge from conflict, investment in modernization of companies' internal structure, management, and capacity for continuous improvement is required if core competence is to be translated into innovation performance.