International Journal of Application on Economics and Business (IJAEB) Volume 4.
Issue 1, 2025.
ISSN: 2987-1972
CREATIVITY WITHIN RESILIENCE:
SMEAoS GREEN ORGANIZATIONAL IDENTITY TOWARDS GREEN INNOVATION CAPABILITY Ignasius Heri Satrya Wangsa1*.
Agustinus Purna Irawan2.
Cokki3 Management Doctror Program.
Universitas Tarumanagara.
Jakarta.
Indonesia* Email: ign.
118251008@stu.
Management Doctror Program.
Universitas Tarumanagara.
Jakarta.
Indonesia Email: agustinus@untar.
Management Doctror Program.
Universitas Tarumanagara.
Jakarta.
Indonesia Email: cokki@fe.
*Corresponding Author Submitted: 18-12-2025.
Revised: 05-01-2026.
Accepted: 18-01-2026
ABSTRACT
Current notions of business resilience often reduce it to Aubusiness as usual,Ay with little regard for long-term This study reinterprets resilience by surveying 400 SME owners in Palembang.
Indonesia, using a PLS-SEM model to trace how Green Organizational Identity (GOI) drives Green Innovation Capability (GIC) via Green Creativity (GC).
Results confirm that GC mediates the effect of GOI on GIC.
Although green creativity is central to building SMEsAo green innovation capability, we also acknowledge possible external influences.
Practically, firms should cultivate an internal culture of green values that stimulates creativity.
Creative adoption of green practices can heighten social awareness and accelerate the shift to a sustainable economy.
We therefore define resilience as Aucreativity within resilienceAy: a steadfast commitment to strengthening organizational identity so that innovation capability grows through the conduit of creativity.
Keywords: Resilience.
Green Organizational Identity.
Green Innovation Capability.
Green Creativity INTRODUCTION Green global norm requires business adaptation to market dynamics as green awareness demands business to maintain green reputation.
It is not just the demand of green product but to see how business is able to sustain its existence while improving its reputation.
As this norm has produced new values, and created such a pressure that business needs to move beyond Aunormal wayAy ie.
to redefine the meaning of managing business resilience.
Napier et al.
mentions resilience as the importance of companies not just surviving but being able to thrive when facing adversity.
It is very important for companies to pay more balanced attention to more than just profit orientation, but also attention to society and the environment.
According to Xing et al.
implementing environmentally friendly policies requires values that can be practiced consistently, becoming an integral part of the organization's identity.
Therefore, this organizational identity is expected to be a driving force for creative and innovative business efforts to respond to dynamic environmental changes.
SMEs play a pivotal role in global economic stability.
World Bank data indicates that in most economiesAiespecially developing countriesAiSMEs account for around 90% of all businesses and generate over 50% of total employment worldwide.
In emerging markets, formal SMEs contribute as much as 40% of national income.
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International Journal of Application on Economics and Business (IJAEB) Volume 4.
Issue 1, 2025.
ISSN: 2987-1972
The significant contribution of SMEs meet challenges in dealing with green global norm According to OECD most SMEs encounter difficulty in response with green global norm in which it is imperative for them to implement green policy.
Most of the challenges are when they need to adapt their business models and investing in the transition in respond to new values of green global norm.
Research on business resilience in the context of SME is also relevant as much of the research tend to focus on large organization.
SMEs face unique challenges and may require different resilience strategies due to limited resources.
Therefore, redefining business resilience is necessary.
Redefining business resilience refers to businessAo efforts to find its new way dealing with increasing volatile and unpredictable landscape (Napier et al.
, 2.
The perspective of RBV emphasizes strategic resources that could be allocated to improve The resources could be the existing ones which then be employed to increase the capacity.
Some would go for knowledge investment through the implementation of One of the strategic resources is marketing capability.
It is the capability to manage marketing resources ie.
value transformation.
With the view of dynamic marketing capability (DMC) business has its capacity to respond the present unpredictable environment.
Drawing on the Resource-Based View (RBV) and Dynamic Marketing Capabilities (DMC), firms can leverage organizational identity to enhance innovation capability.
We posit that creativity functions as a mediator linking organizational identity to innovation outcomes.
this framing, business resilience reflects a sustained commitment to strengthening organizational identity so that innovation capability grows through the conduit of creativity.
Accordingly, our research question asks: how can business resilience be redefined by developing the mediating role of Green Creativity in the effect of Green Organizational Identity on Green Innovation Capability? Resource-based view Resource-based view (RBV) provides a view of strategic resource allocation that has the following values: .
Unique.
Cannot be imitated.
Irreplaceable.
(Monson, 2024 .
Nie et al.
, 2.
Brands are linked to concepts like equity, trust, effectiveness, and partnershipAisignaling emphasis on brand equity, brand trust, and collaborative effectiveness in creating value.
The Auresource-based viewAy (RBV) connects these themes to brand management and marketing capabilities, highlighting their effects on competitive advantage and stakeholder trust.
Related domains include new product development and strategic marketing.
Together, these suggest that a firmAos ability to marshal and deploy marketing resources for brand management can build market trust and, in turn, strengthen competitive advantage.
Dynamic marketing capability Dynamic Marketing Capabilities (DMC) describe a firmAos capacity to realign its marketing strategies and operations as market conditions shift.
DMC comprises three facets: .
Sensing Ai detecting and anticipating changes in customer needs and market trends.
Seizing Ai translating those insights into adaptive strategies and initiatives.
Reconfiguring Ai continuously reshaping marketing resources .
echnology, processes, structure.
to stay aligned with market dynamics and enhance competitiveness.
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International Journal of Application on Economics and Business (IJAEB) Volume 4.
Issue 1, 2025.
ISSN: 2987-1972
Previous studies that use a dynamic marketing capability perspective mention the role of innovation and adaptability as strategic resources in increasing competitive advantage, especially in an era full of uncertain challenges.
Innovation and adaptability are realized through the ability to build networks as a way of developing marketing capabilities (Gliga & Evers, 2.
Through networks, companies can share access to resources, knowledge and market knowledge.
Knowledge functions as a strategic asset that firms must manage adaptively and deploy across new contexts (Cooper et al.
, 2.
Complementary research underscores technologyAos role in expanding a firmAos capacity to explore and develop new markets (Wang et al.
, 2013.
Nayal et , 2.
Moreover.
Guo et al.
highlight that customer relationship management, attentiveness to market dynamics, and branding strategies constitute specific marketing capabilities that can be leveraged to enhance marketing performance.
Green Organizational Identity and Green Innovation Capability Knowledge is a strategic asset that firms should manage flexibly and repurpose across contexts (Cooper et al.
, 2.
Related studies show that technology boosts a companyAos ability to discover and develop new markets (Wang et al.
, 2013.
Nayal et al.
, 2.
In addition.
Guo et .
emphasize that customer relationship management, sensitivity to market shifts, and branding strategies are concrete marketing capabilities that can be harnessed to improve marketing performance.
Green Innovation Capability refers to intangible managerial innovations manifested in organizational routines that reflect voluntary commitment to environmental improvement rather than compliance with formal regulations (Anik & Sulistyo, 2021.
Kumar Kar & Harichandan, 2022.
Nath & Siepong, 2022.
Song & Yu, 2.
Such practices include implementing environmental policies, employing internal assessment tools like benchmarking and environmental accounting, setting measurable environmental performance targets, disclosing performance information, conducting internal and external environmental audits, providing employee training to enhance environmental quality, and linking compensation to environmental achievements.
Green Innovation Capability refers to intangible, managerial-level innovationsAiembedded routines that rely on organizational commitment to environmental improvement rather than compliance with statutory mandates (Anik & Sulistyo, 2021.
Kumar Kar & Harichandan.
Nath & Siepong, 2022.
Song & Yu, 2.
Illustrative practices include:
Chang & Chen .
in their study of Green Organizational Identity and Green Innovation Capability explained the mediating role of organizational commitment and legitimacy.
The impact of Green Organizational Identity on Green Innovation Capability is also influenced by company size.
The findings in this study emphasize the urgency for companies to invest existing resources to improve organizational identity, concern for the environment, and organizational legitimacy so as to increase innovation capabilities.
Green Organizational Identity and Green Creativity The development of several new concepts regarding environmentally friendly goods, services, procedures, and practices that are regarded as possessing the qualities of originality, usefulness, and authenticity can be characterized as "Green Creativity" when viewed through the lens of organizational creativity theory.
Environmental pressures from outside sources can https://doi.
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International Journal of Application on Economics and Business (IJAEB) Volume 4.
Issue 1, 2025.
ISSN: 2987-1972
inspire innovative and practical ideas in organizations with a strong Green Organizational Identity.
As Song & Yu .
point out, this circumstance may foster green creative abilities.
Green Organizational Identity, which is realized in efforts to implement shared values, becomes a driving force for management to create various development programs that have long-term strategic value such as green training initiatives.
These initiatives both directly and indirectly affect Green Creativity in organizations (Joshi & Dhar, 2.
Because of the moderating variable resource commitment that plays in producing superior creative products, green dynamic capabilities also have an indirect impact on Green Creativity.
Arici & Uysal .
and Begum et al.
assert that the secret to gaining a competitive market advantage in the production of novel, eco-friendly products is creativity .
particularly with regard to raising environmental market awareness (Abadzhiev et al.
Wang et al.
Green Creativity and Green Innovation Capability Green Creativity is a concept, procedure, or any innovative and environmentally oriented effort that aims to minimize the impact of environmental damage.
Meanwhile.
Green Innovation Capability refers to an organization's ability to combine sustainable concepts and innovations that are able to improve business and environmental performance.
Green Creativity and Green Innovation Capability have a relationship that complements and supports each other.
Green Creativity serves as the foundation for fostering a culture of sustainability within organizations, and it has become a key component in enhancing their innovation capabilities.
Organizations can encourage the creation of knowledge resources about the environment.
The central role of organizations includes empowering the ability to solve environmental Learning facilitates empowerment and can enhance green innovation capabilities.
The Mediating Role of Green Creativity Green Creativity mediates the effect of Green Organizational Identity (GOI) on Green Innovation Capability (GIC) by converting identity-driven values into novel, useful eco-ideas that can be routinized as capabilities: a salient GOI focuses attention on environmental problems and legitimizes risk-taking and cross-functional collaboration, which heighten intrinsic motivation and domain-relevant skills for green idea generation.
Those creative outputsAieco-designs, cleaner process recombinations, resource-saving solutionsAiprovide the variation and learning that firms then sense, seize, and reconfigure into repeatable green innovation routines, explaining why GOIAos impact on GIC is substantially realized through Green Creativity (Befort, 2025 .
Alfadel et al.
, 2025 .
Dinibutun, 2.
Green Dynamic Marketing Capability Green Dynamic Marketing Capability (GDMC) integrates the principles of the resource-based view (RBV) and dynamic marketing capability (DMC) to enhance a firmAos ability to respond to environmental challenges through green marketing initiatives.
From the RBV perspective.
GDMC hinges on leveraging unique, inimitable, and irreplaceable resources that align with environmental sustainability.
Some of the resources that can be allocated include green technology, environmentally oriented branding, and knowledge.
GDMC can create a competitive advantage through its ability to develop such strategic resources, and also reaffirm the organization's commitment to the achievement of environmentally oriented goals.
Various marketing activities that are https://doi.
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International Journal of Application on Economics and Business (IJAEB) Volume 4.
Issue 1, 2025.
ISSN: 2987-1972
relevant in this context focus on green innovation, building customer trust, and managing brand equity in the long term (Chang & Chen, 2013 .
Song & Yu, 2.
Using the Dynamic Marketing Capabilities (DMC) framework.
GDMC emphasizes three capabilities, respectively: environmentally oriented market observation and evaluation, seizing opportunities for the development of green marketing strategies, and reconfiguring various organizational resources to increase competitiveness (Hoque et al.
, 2.
Wang et al.
, 2.
Companies that have GDMC strength are able to adapt to applicable regulations and market demands for sustainable values, and continuously develop market-oriented approaches that reflect responsibility towards the environment.
Research model The following conceptual model (Figure-.
illustrates the role of Green Organizational Identity .
in shaping Green Innovation Capability .
, both directly and indirectly through Green Creativity .
First, id exerts a direct positive influence on kap (H.
, suggesting that when organizations strongly internalize green values, they are more capable of innovating sustainably.
At the same time, id stimulates kr (H.
, where the organizational commitment to environmental identity fosters creative ideas and practices aligned with green kr, in turn, positively affects kap (H.
, highlighting creativity as a crucial driver for building innovation capacity.
Finally, kr mediates the relationship between id and kap (H.
, indicating that organizational identity translates into innovation capability more effectively when channeled through creative green practices.
This model emphasizes the intertwined pathways of identity, creativity, and innovation in enhancing sustainable competitive Figure 1.
Research model Source: Chang & Chen .
Chen & Chang .
Mendoza-Silva .
Song & Yu .
Xing et al.
Hypotheses H1: Green Organizational Identity .
influences Green Innovation Capability .
H2: Green Organizational Identity .
influences Green Creativity .
H3: Green Creativity .
influences Green Innovation Capability .
H4:
Green Organizational Identity .
influences Green Innovation Capability through the mediating role of Green Creativity .
RESEARCH METHOD This research uses a quantitative approach with PLS-SEM model.
The population are SMEs owners in Palembang - Indonesia who are requested to fill up the questionnaires.
By using a purposive random sampling method, 400 respondents were obtained.
The data collection instrument contains statement items in a questionnaire developed by Chen & Chang .
The three constructs used in the model are taken from previous research as in Mendoza-Silva https://doi.
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International Journal of Application on Economics and Business (IJAEB) Volume 4.
Issue 1, 2025.
ISSN: 2987-1972
Song & Yu .
, and Xing et al.
SmartPLS is used to facilitate the PLSSEM procedure to identify: .
Outer model, where existing indicators can explain each .
Inner model, where the relationship path between constructs can identify whether there is a role of the mediating variable Green Creativity in the influence of Green Organizational Identity on Green Innovation Capability.
Next, exploration was carried out by comparing previous research findings to identify the emergence of new concepts that were relevant to be followed up by future research.
Green Organizational Identity Green Organizational Identity reflects a shared understanding that environmental stewardship informs how the organization behaves.
Its indicators include: .
the firmAos demonstrated concern for environmental management .
clearly articulated objectives guiding that environmental commitment .
the consistent practice of eco-friendly behaviors by employees and leaders alike .
Green Creativity Green Creativity refers to generating novel, authentic, and useful ideas for eco-friendly products, services, processes, and practices.
Its indicators include: .
human resources proactively crafting new environmentally friendly opportunities .
the realization of green ideas spurred by leadership motivation .
creative initiatives aimed at preventing environmental harm .
Green Innovation Capability Green Innovation Capability is a firmAos capacity to combine internal/external resources and technologies to develop new products and processes that lower environmental risks and translate sustainability into competitive advantage.
Its indicators are: .
the companyAos effectiveness in innovating to improve environmental performance .
access to information on eco-friendly activities .
marketable, value-adding innovations .
alignment of innovations with applicable regulations .
RESULTS AND DISCUSSIONS
Figure 2.
SEM Diagram Source: SmartPLS 4.
Convergent validity The following Table-1 shows the outer loadings value of each indicator for each existing construct, as well as to confirm convergent validity.
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International Journal of Application on Economics and Business (IJAEB) Volume 4.
Issue 1, 2025.
ISSN: 2987-1972
Table 1.
Convergent validity STDEV T-stats P-values *) O = original sample .
M = sample mean .
kr = Green Creativity .
kap = Green Innovation Capability .
id = Green Organizational Identity Convergent validity assesses the degree to which the observed variables .
of a latent construct correlate with each other.
As shown in the outer loadings Table-1 above, convergent validity is confirmed through the loadings value of each indicator.
Green Organizational Identity .
has high factor loadings: id1 .
, id2 .
, id3 .
, all exceeding the ideal threshold of 0.
7, which suggests that the indicators strongly reflect the underlying latent Green Creativity .
has factor loadings that are slightly below the ideal threshold, but are still acceptable, respectively: kr1 .
, kr2 .
, kr3 .
Meanwhile.
Green Innovation Capability .
appears to have factor loadings, respectively: kap1 .
, kap2 .
, kap3 .
and kap4 .
Factor loadings on kap1 and kap3 are below the ideal threshold but are still acceptable.
Average Variance Extracted (AVE) The following Table-2 presents the Average Variance Extracted (AVE) to determine the percentage of variance of indicators in explaining the construct.
Table 2.
Average Variance Extracted (AVE) STDEV T-stats P-values *) O = original sample .
M = sample mean .
kr = Green Creativity .
kap = Green Innovation Capability .
id = Green Organizational Identity Average Variance Extracted (AVE) reflects how much of an indicatorAos variance is captured by its latent construct.
A commonly accepted benchmark is 0.
50, indicating that the construct explains over half of the indicatorsAo variance.
In the table.
AVE values are 0.
392 for Green Creativity .
, 0.
409 for Green Innovation Capability .
, and 0.
608 for Green Organizational Identity .
Thus, kr and kap fall below the 0.
50 threshold, suggesting limited variance explanation by these constructs.
Even so, given the comparatively high factor loadings, the measurement model remains defensible.
Discriminant validity Discriminant validity measures how much correlation the indicators in a particular construct have compared to other constructs.
Discriminant validity is confirmed if each indicator correlates more strongly with the construct it is supposed to than other constructs.
In the following cross loadings and Fornell-Larcker criterion tables (Table-3 and Table-.
, the results https://doi.
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International Journal of Application on Economics and Business (IJAEB) Volume 4.
Issue 1, 2025.
ISSN: 2987-1972
of examining the discriminant validity of the indicators in their respective constructs are Table 3.
Cross loadings *) id = Green Organizational Identity .
kap = Green Innovation Capability .
kr = Green Creativity Table 4.
Fornell-Larcker criterion *) kap = Green Innovation Capability .
kr = Green Creativity .
id = Green Organizational Identity The cross loadings table (Table-.
shows that the indicators in Green Organizational Identity .
have more loadings on their own construct compared to other constructs, respectively id1 .
, id2 .
, id3 .
Likewise with the constructs of Green Innovation Capability .
and Green Creativity .
, respectively kap1 .
, kap2 .
, kap3 .
, kap4 .
, kr1 .
, kr2 .
, kr3 .
By using the Fornell-Larcker criteria (Table-.
, it is known that the value of the existing constructs is higher for the construct itself compared to other constructs, respectively Green Innovation Capability .
Green Creativity .
, and Green Organizational Identity .
These results indicate that discriminant validity has been confirmed.
Structural model evaluation The model assesses links among three latent constructsAiGreen Organizational Identity .
Green Innovation Capability .
, and Green Creativity .
Path coefficients reflect the magnitude and direction of these links.
Green Organizational Identity positively predicts Green Innovation Capability ( = 0.
and Green Creativity ( = 0.
both are significant except the id Ie kap path, whose p-value is 0.
lightly above 0.
Green Innovation Capability also enhances Green Creativity .
= 0.
Yellow outer nodes .
, id1, kr.
are indicators, and their high factor loadings show they represent their constructs well.
Bracketed values report loadings and p-values, supporting model validity.
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International Journal of Application on Economics and Business (IJAEB) Volume 4.
Issue 1, 2025.
ISSN: 2987-1972
id Ie kap id Ie kr kr Ie kap id Ie kr Ie kap Table 5.
Path coefficients STDEV T-stats P-values *) O = original sample .
M = sample mean .
kr = Green Creativity .
kap = Green Innovation Capability .
id = Green Organizational Identity Hypothesis testing The results of hypothesis testing are presented in the following table:
Hypothesis H1: id Ie kap H2: id Ie kr H3: kr Ie kap H4: id Ie kr Ie kap Table 6.
Hypothesis testing P-values Accepted/Rejected Accepted Accepted Accepted Accepted *) O = original sample .
M = sample mean .
kr = Green Creativity .
kap = Green Innovation Capability .
id = Green Organizational Identity The table reports hypothesis test results.
For H1.
Green Organizational Identity .
has a marginal effect on Green Innovation Capability .
with p = 0.
051 (OO 0.
H2Aitesting id Ie Green Creativity .
Aiis supported .
= 0.
000 < 0.
H3 shows kr significantly predicts kap .
= 0.
H4 confirms that kr mediates the effect of id on kap .
= 0.
023 < 0.
, so the mediation hypothesis is accepted.
Green Organizational Identity .
and Green Innovation Capability .
Green Organizational IdentityAos effect on Green Innovation Capability is borderline and not robust: the p-value is 0.
ust above 0.
and the t-statistic is 1.
lightly under the 96 benchmar.
, indicating a weak relationship.
The model estimates three links: .
Green Creativity .
Ie Green Innovation Capability .
Green Organizational Identity .
Ie Green Creativity .
Green Organizational Identity .
Ie Green Innovation Capability .
Among these, the id Ie kap path is comparatively weaker than both id Ie kr and kr Ie kap.
Green Organizational Identity .
and Green Creativity .
The Green Organizational Identity substantially impacts Green Creativity, evidenced by a path coefficient of 0.
533 and a significant p-value of 0.
000 (< 0.
The t-statistic of 7.
004 exceeds the optimal threshold of 1.
This signifies a profound impact.
Green Organizational Identity can influence mindsets and behaviors, as well as foster creative actions aimed at environmental sustainability.
Green Creativity .
and Green Innovation Capability .
The influence of Green Creativity on Green Innovation Capability has a path coefficient value 339 with a significance level of 0.
011 (< 0.
The t-statistic value of 2.
548 is also above the ideal threshold of 1.
This indicates that Green Creativity can drive the enhancement of green innovation capabilities.
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International Journal of Application on Economics and Business (IJAEB) Volume 4.
Issue 1, 2025.
ISSN: 2987-1972
The Mediating Role of Green Creativity .
Green Creativity significantly mediates the effect of Green Organizational Identity on Green Innovation Capability.
Green Organizational Identity .
strongly predicts Green Creativity .
(=0.
533, t=7.
004, p<0.
, and Green Creativity .
in turn predicts Green Innovation Capability .
(=0.
339, t=2.
548, p=0.
the indirect effect idIekrIekap is positive and significant (=0.
181, t=2.
281, p=0.
, while the direct path from Green Organizational Identity .
to Green Innovation Capability .
remains positive but only marginally significant (=0.
293, p=0.
Together, these coefficients indicate a complementary partial Green Organizational Identity .
and Green Innovation Capability .
The findings of this study show a weak direct influence of Green Organizational Identity .
on Green Innovation Capability .
Previous studies support this finding where the weak influence can be seen from the low commitment to environmentally friendly good practices.
This is mainly due to the limited resource capacity available.
Another consideration is the relatively low market demand for green products compared to conventional products.
The weak relationship between Green Organizational Identity .
and Green Innovation Capability .
is also due to the organization's ability to interpret and apply its green values.
There is still a tendency for these values to be limited to a symbolic nature.
According to Song & Yu .
Green Organizational Identity is a collective value and organizational commitment that should be integrated and capable of being operationalized at a practical level.
However, according to Chang & Chen .
Green Innovation Capability .
, which should be a manifestation of Green Organizational Identity .
, is hampered by high investment costs, especially for research, technology and development (Wang et al.
, 2.
Organizations at this level prioritize branding and communication strategies, as part of the actualization of Green Organizational Identity .
, and have not yet taken substantive action to build green innovation capabilities .
Song & Yu .
argue that Green Organizational Identity .
is not always directly related to Green Innovation Capability .
, but there is a role of mediating variables.
Green Organizational Identity .
and Green Creativity .
The significant influence of Green Organizational Identity .
on Green Creativity .
is demonstrated through the organization's ability to develop collective, environmentally friendly values .
reen value.
in an integrated and systematic manner within the organizational scope.
This has an impact on the ability to manage knowledge resources.
There is a shared commitment at all organizational levels, as well as good learning practices that can open horizons, encourage creative thinking and become an inseparable part of organizational Existing studies show that Green Creativity .
is the ability to translate values and As a learning process.
Green Creativity .
is the foundation for the emergence of new ideas and solutions.
The mediating role of Green Creativity .
in the relationship between Green Organizational Identity .
and Green Innovation Capability .
The mediating role of Green Creativity .
in the influence of Green Organizational Identity .
on Green Innovation Capability .
emphasizes how creativity is able to transform organizational values into innovative practices.
Green Organizational Identity .
builds a foundation of commitment to environmentally friendly organizational practices, creating an organizational culture that supports sustainability.
Green Organizational Identity .
in this context is able to create creative values that are focused on problem-solving, and therefore this becomes the essence of Green Innovation Capability .
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International Journal of Application on Economics and Business (IJAEB) Volume 4.
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Green Creativity .
creates new ideas and concepts regarding environmental friendliness, specifically responding to sustainability challenges (Song & Yu, 2.
Green Creativity .
has the function of translating the values that have been integrated in the Green Organizational Identity .
, into creative efforts focused on attention to the environment.
The creative process in Green Creativity .
is realized in unique and specific solutions.
If this creative process forms a permanent system, carried out consistently, it will be able to accumulate Green Innovation Capability .
Redefinition of business resilience The marginal association between Green Organizational Identity .
and Green Innovation Capability .
= 0.
invites a reframing of business resilience within the sustainability While resilience is conventionally conceived as the capacity to absorb shocks, adapt to environmental turbulence, and re-establish performance post-disruption, the present evidence suggests a more internal, capability-oriented dimension: resilience as the systematic translation of identity commitments into innovation outcomes.
A weak direct path from id to kap implies that symbolic or declarative green identity is insufficient to yield innovation advantages absent enabling routines and structures .
Jansson et al.
, 2017.
Cai & Li, 2.
Accordingly, resilience should be understood to encompass the development of integrative, cross-functional processes.
continuous learning mechanisms.
and creativity-enabling contexts that bridge the identityAeinnovation gap and convert espoused environmental values into operationalized, scalable green practices.
This new meaning of resilience emphasizes the importance of internal flexibility and strategic Firms must recognize that environmental identity, while important for aligning with market expectations, does not automatically foster innovation unless the organization is resilient enough to integrate identity with Green Creativity and dynamic capabilities (Li et al.
This reframing of resilience highlights the need for businesses to proactively cultivate internal mechanisms that enhance their capacity for sustainable innovation even when direct linkages to identity are weak.
Therefore, resilience now includes a companyAos ability to adapt and evolve by fostering the organizational capabilities that turn green identity into meaningful, innovative outcomes, which is essential for long-term competitiveness in environmentally conscious markets (Cai & Li, 2.
CONCLUSIONS AND SUGGESTIONS
The Green Dynamic Marketing Capability (GDMC) framework demonstrates how Green Organizational Identity .
is crucial in guiding businesses toward sustainability, even though the direct impact on Green Innovation Capability .
is slightly insignificant.
This shortcoming stems from the resource limitations that many companies, especially SMEs, face when trying to meet their green reputation.
The foundation for sustainability is laid by promoting environmental responsibility through Green Organizational Identity .
, but it usually lacks the financial and technological resources to improve Green Innovation Capability .
Consequently, businesses might struggle to turn their green ideas into practical innovations without enough support and commitment.
A key limitation of this study concerns potential resource constraintsAiparticularly among SMEsAithat may impede the full enactment of environmental commitments and, consequently, circumscribe green innovation capability.
While the analysis identifies a weak direct effect of Green Organizational Identity on Green Innovation Capability, it also https://doi.
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International Journal of Application on Economics and Business (IJAEB) Volume 4.
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acknowledges exogenous contingenciesAisuch as regulatory frameworks, market pressures, and technological availabilityAithat may condition or attenuate this relationship.
REFERENCE