Green absorptive capacity and environmental management: the main challenges, gaps and research agenda

Purpose This paper aims to comprehensively examine the concept of green absorptive capacity (GAC), emphasizing the increasing need to incorporate external environmental knowledge into green innovation (GI) and management strategies. It highlights how GAC can assist companies in remaining competitive while embracing environmental issues and fostering a green economy. Design/methodology/approach We conducted a systematic and comprehensive literature review, examining over 120 peer-reviewed articles from the Web of Science database and their relevance to GAC. By utilizing the bibliometric analysis software VosViewer, we identified key themes and trends in the literature. Findings The research findings highlight the importance of GAC as a key organizational function that mediates the link between GI and environmental pressures. Four thematic areas were identified: (1) competitive advantages associated with GAC in improving environmental and business performance; (2) determinants influencing GI, such as stakeholder and regulatory pressures; (3) new dynamics of absorptive capacity that focus on integrating stakeholder and environmental concerns and (4) the urgency of GAC adoption, which is driven by both internal and external pressures to achieve sustainability goals. Practical implications We propose a conceptual definition in the context of new pressures, discuss its competitive advantages and theorize about its impact on green innovation as a driving force in the new economy. Originality/value The findings and policy recommendations are widely applicable across various industries and areas, even though the results will be derived from a particular body of literature. Due to the concept’s adaptability and close relationship to green innovation, the study can propose solutions that can be adjusted to different regulatory and industrial situations.