How Does Entrepreneurial Alertness Lead to Green Product Innovation in Companies? The Roles of Organizational Unlearning and Diversity Climate

Abstract

ABSTRACT Green product innovation is crucial for achieving a competitive edge during the transition toward carbon neutrality. Existing studies have extensively emphasized the roles of environmental regulations, customer demand, and leadership; however, the importance of entrepreneurial alertness in green opportunity identification remains underexplored. Drawing on information processing theory and the knowledge‐based view, this study examines the relationship between entrepreneurial alertness and green product innovation by developing a theoretical model that incorporates the mediating role of organizational unlearning and the moderating influence of diversity climate. Using a multisource survey design, we collected data from 339 firms in East China. The empirical findings indicate that entrepreneurial alertness is positively associated with green product innovation via organizational unlearning, and this indirect relationship is stronger when diversity climate is supportive. This study delineates the cognitive pathway and contextual contingencies that link entrepreneurial alertness to green product innovation, providing theoretical insights into how firms can leverage entrepreneurial alertness within a supportive diversity climate to foster eco‐innovation.