How much do cluster institutions drive a firm’s green innovation? A multi-level analysis

This research explores the complementary role of formal institutions at the macro-level and informal ones at the cluster level on a firm’s green product innovation. Using mixed methods in a sample of 177 firms dedicated to the footwear industry, belonging to three clusters in three different countries, findings suggest that: (1) the cluster effect positively influences a firm’s green product innovation; and (2) informal cluster-level institutions’ effect on green product innovation is jointly and positively moderated by national institutions. Green innovation in clusters requires coupling different multi-scalar institutional systems effectively.