Organisational agility, environmental knowledge and green product success

Purpose The purpose of this study is to analyse the effect of organisational agility on environmental knowledge as an instrument for the successful development of eco-innovation in products. Design/methodology/approach This study used a cross-sectional design to collect data on the study variables from a sample of 184 Spanish manufacturing organisations. Structural equations with partial least squares were used to test the hypotheses. Findings Organisational agility is significantly linked to internal and external environmental knowledge. The results of this study highlight the effect of external knowledge on the success of eco-innovation. Internal environmental knowledge positively moderates the effect of external knowledge on the success of green products. Research limitations/implications Based on the dynamic capabilities approach, a theoretical model has been proposed in which organisational agility is configured as an effective capacity for the development of environmental knowledge. The results confirm this relationship and indicate that, although internal environmental knowledge is not decisive in developing new green products, it does enhance the effect of external knowledge on the success of eco-innovation. Practical implications Innovative companies must implement organisational agility practices that promote environmental knowledge for the success of new green products. They should also promote both external and internal knowledge. Originality/value This study addresses the little explored area of the relationship between organisational agility and the successful development of new green products. The inherent particularities of eco-innovation prompt the need for further studies on the creation of specific knowledge for its promotion. This study concludes that adopting agile practices enables key environmental knowledge for this type of innovation to be created. Additionally, it explores the tensions arising from the dichotomy between internal and external knowledge, with scarce resources allocated to the most effective source. Although both types of knowledge seem to be equally relevant, external knowledge plays a more significant role in the case of eco-innovation. A final contribution of this study is the finding that internal knowledge can further enhance the effect of external knowledge on the development of successful green products.