Green supplier integration and environmental performance: do environmental innovation and ambidextrous governance matter?

Purpose: Since firms are often puzzled with the adoption of proper governing mechanism to achieve their environmental benefits, this research examines how green supplier integration (GSI) affects environmental performance via environmental innovation and the moderating role of ambidextrous governance. Design/methodology/approach: The authors tested the hypotheses by adopting two-waved survey data from 206 Chinese manufacturers and the hierarchical regression analysis. Findings: The results revealed that GSI is positively linked with both incremental and radical environmental innovation, which further enhance environmental performance. Moreover, balanced ambidexterity enhanced the link between GSI and incremental environmental innovation, while combined ambidexterity alleviated the link between GSI and radical environmental innovation. Practical implications: Firms should integrate suppliers into their activities of dealing with environmental issues to realize environmental benefits through facilitating environmental innovation. Moreover, the choice of different dimensions of ambidextrous governance can affect the environmental benefits of GSI. Originality/value: This research enriches the authors’ understanding of how to achieve environmental benefits by engaging in GSI, and it provides a novel and insightful approach for better managing GSI from the perspective of ambidextrous governance.