Substantial green innovation for survival: how do continuous aspirations work?

Purpose This study aims to explore how enterprises select between substantive and symbolic green innovation (SYGI) strategies under persistent performance difficulties, focusing on the influence of negative performance feedback and innovation motivation. Design/methodology/approach Grounded in the behavioral theory of the firm and upper echelons theory, the authors analyzed panel data from Chinese A-share listed manufacturing firms covering the period 2007–2022 to assess the effects of persistence of negative performance feedback (NPFP) on substantive green innovation (SUGI) and SYGI, alongside the moderating roles of top management team members “green experience (GEX)” and R&D experience (RDEX). To address potential econometric issues arising from unbalanced panel data, this study uses the proportion of TMT members with exceptional experience as an alternative measure in the regression analysis. Findings The results show that NPFP boosts SUGI but reduces SYGI. GEX strengthens the positive effect of NPFP on SUGI, while it weakens the adverse impact of NPFP on SYGI. RDEX enhances NPFP’s promotion of SUGI but weakens its suppression of SYGI. Practical implications These insights guide managers and policymakers in leveraging executive expertise in green and R&D areas to optimize green innovation strategies during performance downturns. Originality/value By integrating the temporal dynamics of performance feedback and innovation motivation, this study advances the theoretical understanding of firm behavior and GI strategies.