Leveraging digital alliances for green innovations: a pathway to becoming green

David, Bendig; Schäper, Thomas; Strehlow, Manfred; Foege, Johann Nils

Abstract

Human-caused climate change and its consequences challenge the modern economy, putting pressure on firms to enhance their ecological sustainability. In this study, we argue that digital alliances, i.e., strategic partnerships focused on the co-development, enhancement, and collaborative sharing of information systems (IS) resources, are particularly important for firms’ ecological performance. Our key argument is that digital alliances are critical in acquiring IS knowledge for developing green innovations. Using an absorptive capacity perspective, we theorise that industries’ information technology (IT) intensity affects the assimilation of externally acquired IS knowledge and therefore is a critical contingency for the link between digital alliances and green innovations. We also posit that the continuous development of green innovation shifts the mindset in firms, leading to a green culture, and that industry IT intensity again moderates this link. To test our theorising, we create a panel data set of 184 United States listed firms with 1,424 firm-year observations. Our findings broadly support our theorising. They contribute to the literature on the intersection of alliances and ecological sustainability by showing that IS plays a critical role in developing green innovations.