How much do green and digital service innovations matter for firm performance? Understanding the mediating role of product creativity

The sudden outbreak of the COVID-19 pandemic has not only disrupted the world's economy but has also profoundly changed the internal and external circumstances of its development. Amid this crisis, green and digital service innovations have increasingly become two key factors in sustainable development. Firms have become increasingly committed to meeting consumers' growing demand for low-carbon sustainable development. For instance, they have enhanced their engagement in green and digital service innovations. Thus, this research theorises and empirically examines the relationships among green and digital service innovations, product creativity, and firm performance. More specifically, I attempt to examine whether and how the two strategies affect product creativity in enhancing firm performance. I further consider product creativity to have two specific dimensions, namely, product effectiveness and novelty. Then, I explore how these dimensions contribute to the improvement of firm performance. More importantly, I provide an in-depth understanding of the roles of product effectiveness and novelty in mediating the potential effects of green and digital innovations on firm performance. The study provides insights to management scholars and offers practical guidelines on managerial actions that practicing managers can implement to understand and undertake service innovations in their new product development better.