Green public procurement and corporate green innovation: a moderating effect of internal and external governance

To address the issue of insufficient motivation for green innovation, this article analyzes the impact and mechanisms of green public procurement on corporate green innovation from the perspectives of resource-based view by addressing the effect of internal and external governance on alleviating financial constraints faced by companies. Based on data from China’s A-share-listed companies from 2004 to 2019, the article confirms that green public procurement significantly enhances the level of corporate green innovation, both quantitatively and qualitatively. And this process is partly achieved by declining competition for external governance resources and improving internal governance levels to alleviate firms' financing constraints. This article provides a valuable supplement to the existing research literature on the micro-effects of government procurement and is effective for examining market-based policy tools. It holds positive practical significance for guiding companies to engage in green production and for promoting the construction of ecological civilization.