2.1. GIS and Sustainable Competitive Advantages
A GIS refers to the process in which an enterprise adopts green technology or green management to improve or change its production and operation activities to achieve the goals of reducing environmental pollution, conserving resources, reducing waste and improving the environment in alignment with the external environment and the condition of the organization. When instituting a GIS, enterprises need to actively reduce their negative impact on the environment caused by their business activities and incorporate environmental responsibility into their strategic planning. A GIS can be divided into three modes: pollution prevention, product management and the use of clean technology [
5]. Based on data obtained from stakeholders, scholars have summarized the motivations of and pressure on enterprises to implement a GIS, mainly including pressure from government policy, market consumer demand, suppliers and competition [
18,
19,
20]. On this basis, scholars further identified government pressure and market pressure as the driving forces that cause enterprises to carry out a GIS. The former implies that enterprises lack the initiative to engage in green innovation, and governments influence enterprises’ decisions to develop a GIS by formulating and implementing environmental regulations [
21,
22], while the latter means that customer choices in an environment of market competition, supplier cooperation and the methods used by competitors will enable enterprises to carry out a GIS [
23,
24]. Thus, a GIS is affected by the characteristics of enterprises, which have dual externalities [
25].
Sustainable competitive advantages have been developed according to competitive advantages theory, and they refer to competitive advantages that an enterprise can have for a long time. Sustainable competitive advantages enable an enterprise to gain long-term benefits and avoid being outdone by potential competitors through strategic replication or imitation [
26]. Sustainable competitive advantages are long-term competitive advantages that do not disappear as the environment changes. Most scholars have explored the source of sustainable competitive advantages from the perspective of strategic management and found that resources and capabilities were the basis of an enterprise’s sustainable competitive advantages. This is especially true regarding the cultivation of dynamic capabilities, which makes enterprises constantly update their organizational routines to adapt to the environment when it is turbulent. Some scholars have considered the sociological perspective and pointed out that social responsibility, including environmental ecological protection, green product development and business ethics, can make enterprises gain sustainable competitive advantages [
27]. This paper defines sustainable competitive advantages from the perspective of strategic management, and measures them with both financial indicators and non-financial indicators. The former focuses on the sales growth rate and profit growth rate of enterprise’s products, while the latter focuses on customer satisfaction and customer loyalty.
To explore the relationship between a GIS and sustainable competitive advantages, scholars have studied it from multiple perspectives. For example, some scholars have pointed out that the pivotal assets used for a pollution control strategy were proprietary material assets and technologies. An environmental strategy involves redesigning the delivery process of a product or service and redesigning production processes to reduce pollution [
4]. In addition, this strategy involves reprocessing raw materials and by-products to reduce pollution and to develop new processes that will further reduce pollution. Finally, improving the efficiency of production processes and reducing the costs of raw material and waste disposal can lower production costs and create competitive advantages [
28]. From the perspective of green technology upgrading and process reengineering, some scholars have pointed out that to acquire sustainable competitive advantages, enterprises have been required to make thorough adjustments to various aspects such as technology R&D, the organizational structure, the process design and human capital, and their existing R&D, production and marketing functions were involved in this process [
29,
30]. Using green technologies such as clean technologies, is an integrated and complex organizational process that increases the complexity of production or distribution processes and requires employees at all levels of the enterprise to improve their skills. Developing green technologies internally is a systematic process based on organizational commitment, organizational learning, cross-functional integration, and the improvement of employees’ skills and engagement [
31,
32]. According to the resource-based view [
33], this process will help the organization develop a unique resource structure and a pattern that is difficult to replicate, thus helping the enterprise to gain sustainable competitive advantages. Additionally, some scholars have proposed the necessity and benefits of using a green entrepreneurial strategy based on stakeholder pressure. Scholars have emphasized that due to the increasing improvement of environmental regulation and consumers’ environmental protection awareness, enterprises will face increasing numbers of constraints. Only when environmental issues are incorporated at the strategic level can organizations obtain unique sustainable competitive advantages [
34]. For example, when organizations are under pressure from the government, a GIS can prevent enterprises from being punished by the government and can also help enterprises become role models in their industry. Under market pressure, with increasing awareness of green environmental protections, consumers are more likely to choose environmentally friendly products [
32]. A GIS not only meets the needs of consumers but also helps an organization develop a good ethical image and obtain product differentiation advantages by selling products at high prices [
35,
36]. Enterprises with better green innovation can increase their revenue and reduce the external costs of innovation by transferring green innovation technology and knowledge [
37,
38]. Hence, enterprises adopting a GIS are more likely to gain sustainable competitive advantages. Accordingly, we formulate the following hypothesis.
Hypothesis 1. Enterprises with higher levels of GIS will have more sustainable competitive advantages.
2.2. Dynamic Capabilities under Environmental Uncertainty
Since Teece put forward the theory of dynamic capabilities, the dynamic capabilities theory has become one of the most active research areas in the field of strategic management. As an important academic concept, there is a theoretical controversy regarding dynamic capabilities to a certain extent [
39,
40]. With the development of research on dynamic capabilities, two main schools of thought have emerged [
15]. The first genre is represented by scholars such as Teece and Dyer. Using the resource-based view as their theoretical basis, these scholars have systematically expounded on the logic and connotation of dynamic capabilities by referring to Porter’s industrial positioning theory and dynamic strategic conflict theory. In addition, these scholars analyzed the essential attributes of dynamic capabilities by considering three aspects, the assets, path and organizational process [
39], thus proposing the landmark conclusion that dynamic capabilities are generated throughout the organization’s processes and are determined by the enterprise’s assets and “path”. Ultimately, dynamic capabilities are divided into three dimensions: coordination/integration capabilities, learning capabilities and refactoring capabilities. This stream of research on dynamic capabilities mainly focuses on the dynamic “path” from the construction of the enterprise asset structure to its reorganization, and enterprises need to constantly revise old routines and develop new ones to gain competitive advantages [
41,
42,
43]. The achievements of this genre are the most recognized in the academic world [
15]. The second genre is represented by scholars such as Eisenhardt and Martin, with the indirect negation of Teece’s dynamic capabilities as its starting point. Based on empirical analysis, these scholars believed that Teece’s dynamic capabilities are not the direct source of enterprise competitive advantages but rather have an indirect impact on competitive advantages through various “substantial capabilities” such as product R&D capability, alliance capability, and strategic decision-making capability [
40]. In other words, if enterprises want to gain lasting competitive advantages, they need to develop a series of substantive capabilities through objective practice [
44]. Zahra et al. further examined the development of a “substantive capacity” (best practice) by considering the organizational learning perspective on the basis of their agreement with the views [
45] presented above. The authors claimed that different enterprises may have the same resource structure, but this does not mean that they have the same “substantive capacity” because the different assets and status that organizations possess [
39] cause them to choose different methods to increase their knowledge and ability to learn. Therefore, learning is a mediator of the relationship between the resource structure of the organization and its substantive capabilities. The characteristics of these two schools of thought are shown in
Table 1.
Thus, it can be seen that there has been a certain amount of conflict in the study of dynamic capabilities, which is mainly due to the theoretical opposition between scholars such as Teece and Eisenhardt. Some scholars put forward their own views on the theoretical disputes between the two schools of thought. These scholars believe that the study of dynamic capabilities has moved in two separate directions, which has a negative effect on enriching the theory of dynamic capabilities [
46]. The academic community must address the theoretical conflict between Teece and Eisenhardt and find a reasonable way to reconcile their opinions [
15]. Fortunately, regarding the nature of dynamic capabilities, scholars have reached a consensus based on resource-based view theory that these capabilities originate in the dynamic process of constructing and reconstructing organizational routines [
45]. Furthermore, dynamic capabilities depend on organizational routines and are derived from the entire path of routine updates, which is complex and difficult to capture [
42]. Therefore, research on the updating of organizational routines can reveal the nature of dynamic capabilities, which will also help resolve the conflicts that arise in the study of dynamic capabilities, thereby making this stream of research more valuable.
Organizational routine renewal is the result of organizational learning, which represents the evolution of knowledge in the organization [
47]. Therefore, it is more meaningful to explore the process of organizational routine renewal from the perspective of knowledge. Organizational routine renewal is the same as knowledge evolution, and both have unique internal ways of updating. The study on organizational knowledge conducted by Nelson and Winter draws on the theory of evolution, in which “heredity” and “variation” are two manifestations [
48]. Heredity is directional, and refers to the inheritance of the old knowledge system. In the process of organizational selection and absorption of external knowledge, the new knowledge system is based on the old knowledge system and is the result of constant revision and evolution of the old knowledge system. However, variation is non-directional, and reflects the difference between the new knowledge system and the old knowledge system. Heredity and variation are both the results of the organization’s adaptation to environment. Since the renewal of organizational routines involves the selective absorption of new knowledge, there should be two ways of dealing with new knowledge and subsequently, two results. The first is to apply new knowledge to the old knowledge system and to amend and improve the inherent systems and routines, representing the process of organizational routine amendment (RA); the second is to create a new knowledge structure and routine on the basis of the old knowledge system based on the acquisition of new knowledge, representing the process of organizational routine creation (RC) [
49]. Routine amendment and routine creation are two methods used for organizational routine renewal, which correspond to the “heredity” and “variation” of the organization’s adaptation to environmental changes. In this paper, to measure dynamic capabilities, we use routine amendment behaviors and routine creation behaviors to represent routine renewal behaviors.
Therefore, revealing the role of dynamic capabilities in the relationship between a GIS and sustainable competitive advantages can be achieved by exploring the roles of the two methods of routine renewal. Routine amendment behavior that occurs during the process of green innovation represents the heredity of green knowledge, implying that the organization has absorbed and accumulated new green knowledge in a targeted manner according to the existing green knowledge base, reorganized the green knowledge system and improved an existing routine. This results in the improvement of the organization’s standard process and old routine system by emphasizing a small number of changes and slow reform and paying attention to the efficiency and implementation of new green routines. In addition, routine creation behavior that occurs during the process of green innovation represents the variation of green knowledge, which indicates that the members of the organization seek change, adventure and like to experiment. The organization mainly tends to acquire new green knowledge from external customers, partners and competitors and to study new green technologies and green management models that differ from the organization’s existing knowledge systems and routines [
50]. Given the adventurous nature of organizational routine creation behavior, it is associated with income uncertainty and high risk. Both routine amendment behavior and routine creation behavior are affected by environmental uncertainty, and the degree of influence is very large. In a moderately dynamic market environment, the industry boundaries are clear, the participants are explicit, and the industry structure is relatively stable. At this point, the organization attempts to engage in green innovation by relying on dynamic capabilities achieved through routine renewal, which is a detailed, analyzable and stable process [
40]. Therefore, the organization is capable of updating organizational routines, which can either be improved or created to enhance efficiency [
51]. Based on this information, this paper proposes the following hypotheses.
Hypothesis 2. In an environment of low uncertainty, dynamic capabilities have a positive effect on sustainable competitive advantages.
Hypothesis 3. In an environment of low uncertainty, dynamic capabilities have a complete mediating effect on the relationship between a GIS and sustainable competitive advantages.
In contrast, in a rapidly changing market environment, market boundaries are blurring, successful business models are unclear, and market players (i.e., buyers, suppliers, competitors) are ambiguous and shifting. The overall industry structure is unclear and the life cycle of new technology which appears in the industry will be very short [
40,
52]. Therefore, it will be difficult for enterprises to obtain sustainable competitive advantages if they develop a new green technology or improve the original technological process. The benefits of green innovation strategy are short-term. Under these circumstances, effective dynamic capabilities of the organization are necessarily reflected by the simple, highly utilized, mature and stable management processes which are not complicated [
53]. Organizational routines should also include simple routines that can be tailored to specific situations and can also purposefully allow for emergent adaptation. Furthermore, when the pressure of the market environment becomes intense, enterprises should choose those simple and mature “substantive capabilities” such as alliancing, strategic decision making, and knowledge brokering, as the best practices for organization, that is focusing on “choose” rather than “change”. In addition, because the members of the organization become uncertain about the acquisition and use of new green knowledge, the characteristic of new organizational routines is path-dependent from the old one [
49]. At this point, updating routines by engaging in new green behavior may adversely affect and misalign the old routines and may also make the new routines ineffective and fragile [
51]. This decision-making risk under uncertainty is the main reason organizations lose their competitive advantages. Overall, in an environment of high uncertainty, enterprises should choose those simple (not complicated) and experiential routines to deal with the unpredictable outcomes. Any activities related to routine amendment and routine creation may harm the sustainable competitive advantages. Therefore, this article proposes the last two hypotheses.
Hypothesis 4. In an environment of high uncertainty, dynamic capabilities have a negative effect on sustainable competitive advantages.
Hypothesis 5. In an environment of high uncertainty, dynamic capabilities have no mediating effect on the relationship between a GIS and sustainable competitive advantages.
Figure 1 presents the overall research framework.