External green pressure, dynamic capability, and green innovation: The regulating effect of executive environmental attention
Vol 9, Issue 10, 2024, Article identifier:
VIEWS - 43 (Abstract) 24 (PDF)
Abstract
Aiming to investigate the mediating effect of green dynamic capability on external green pressure and green innovation, as well as the moderating effect of executive environmental attention on external green pressure and green dynamic capability, this study preferred a theory model with five hypotheses. A valid sample of 357 interviewees was investigated to test the proposed hypotheses, and structural equation modeling was utilized. In addition, external green pressures mostly have a significant impact on green innovation, the green dynamic capability as a mediator. Also, executive environmental attention moderates the relationship between external green pressure and green dynamic capabilities. The results offer unique contributions to the literature and some suggestions for practicing in manufacturing enterprises.
Keywords
Full Text:
PDFReferences
1. Hart SL. A natural-resource-based view of the firm (). Academy of Management Review. 1995; 20(4): 986-1014. doi: 10.5465/amr.1995.9512280033
2. Klemmer P. Innovation and the Environment. Studies of the Research Group “Innovation Effects of Environmental Policy Instruments”. Analytica Verlag. Berlin.1999
3. Kemp R, Arundel A, Smith K. Survey indicators for environmental innovation. Gramisch-Partenkirchen, Germany: Conference towards environmental innovation systems. 2002
4. Hellstrom, T. Dimensions of environmentally sustainable innovation: the structure of ecoinnovation concepts. Sustainable Development. 2007; 15(3): 148-159. doi: 10.1002/sd.309
5. Singh SK, Giudice MD, Jabbour CJC, et al. Stakeholder pressure, green innovation, and performance in small and medium-sized enterprises: The role of green dynamic capabilities. Business Strategy and the Environment. 2022; 31(1): 500–514. doi: 10.1002/bse.2906
6. Berrone P, Fosfuri A, Gelabert L. Necessity as the mother of “green” inventions: institutional pressures and environmental innovations. Strategic Management Journal. 2013; 34(8): 891-909. doi: 10.1002/smj.2041
7. Xu H, Zhao XK, Jie S. Stakeholders’ environmental demands and corporate environmental responsiveness. Soft Science. 2015; 29(12): 18-21. doi: 10.13956/j.ss.1001-8409.2015.12.05
8. Frondel M, Horbach J, Rennings K. What triggers environmental management and innovation? Empirical evidence for Germany. Ecological Economics. 2007; 66(1): 153-160. doi: 10.1016/j.ecolecon.2007.08.016
9. Galaskiewicz J, Wasserman, S. Mimetic processes within an interorganizational field: an empirical test. Administrative Science Quarterly. 1989; 34(3): 454-479. doi: 10.2307/2393153
10. Henisz WJ, Delios A. Uncertainty, imitation, and plant location: Japanese multinational corporations, 1990-1996. Administrative Science Quarterly. 2001; 46(3), 443-475. doi: 10.2307/3094871
11. Zhu Q, Geng Y. Drivers and barriers of extended supply chain practices for energy saving and emission reduction among Chinese manufacturers. Journal of Cleaner Production. 2013; 40: 6-12. doi: j.jclepro.2010.09.017
12. Li XP. Research on the influence of media attention on enterprise green technology innovation: Based on the executive team environmental attention perspective. Journal of Entrepreneurship in Science & Technology. 2023; 36(5): 14-21. doi: 10.1016/j.techfore.2023.122522
13. Lee MDP, Lounsbury M. Filtering institutional logics: community logic variation and differential responses to the institutional complexity of toxic waste. Organization Science. 2015; 26(3): 847-866. doi: 10.1287/orsc.2014.0959
14. Feng WN, Mu Y, Qu R. External green pressure, environmental commitment and green innovation strategy of manufacturing enterprises: The moderating role of organizational slack. Journal of Northeastern University (social Science). 2023; 25(1): 35-46. doi: 10.15936/j.cnki.1008-3758.2023.01.005
15. Eisenhardt KM, Martin JA. Dynamic capabilities: What are they? Strategy Management Journal. 2000; 21(10-11): 1105-1121. doi: 10.1002/1097-0266(200010/11)21:10/11<1105::AID-SMJ133>3.0.CO;2-E
16. Zahra SA, Sapienza HJ, Davidson P. Entrepreneurship and dynamic capabilities: A review, model, and research agenda. Journal of Management Studies. 2006; 43(4): 917-955. doi: 10.1111/j.1467-6486.2006.00616.x
17. Yang L, Tan JS, Gan C. Does independent goal interdependence impair dynamic capability? The mediating role of supplier integration and the moderating role of internal integration. Asia Pacific Journal of Marketing and Logistics. 2021; 34: 1436–1458. doi: 10.1108/APJML-02-2021-0078
18. Zhou SS, Zhou AJ, Feng J, et al. Dynamic capabilities and organizational performance: The mediating role of innovation. Journal of Management & Organization. 2019; 25(5): 731–747. doi: 10.1017/jmo.2017.20
19. Rodrigues B, Gohr C. Dynamic capabilities and critical factors for boosting sustainability-oriented innovation: Systematic literature review and a framework proposal. Engineering Management Journal. 2021; 34(4): 591–619. doi: 10.1080/10429247.2021.1960124
20. Delgado-Ceballos J, Aragon-Correa JA, Ortiz-de-Mandojana N, et al. The effect of internal barriers on the connection between stakeholder integration and proactive environmental strategies. Journal of Business Ethics. 2012; 107(3): 281-293. doi: 10.1007/s10551-011-1039-y
21. Freeman RE. Strategic management: a stakeholder approach. Cambridge University Press.1984
22. Mitchell RK, Agle BR, Wood DJ. Toward a theory of stakeholder identification and salience: defining the principle of who and what really counts. Academy of Management Review. 1997; 22(4): 853-886. doi: 10.5465/amr.1997.9711022105
23. Buysse K, Verbeke A. Proactive environmental strategies: A stakeholder management perspective. Strategic Management Journal. 2003; 24(5): 453-470. doi: 10.1002/smj.299
24. Li WH, Gu Y, Liu F, et al. The effect of command-and-control regulation on environmental technological innovation in China: a spatial econometric approach. Environmental Science and Pollution Research. 2019; 26(34): 34789-34800. doi: 10.1007/s11356-018-3678-3
25. Liao ZJ, Liu P. Market-based environmental policy instrument mixes and firms’ environmental innovation: a fuzzy-set qualitative comparative analysis. Emerging Markets Finance and Trade. 2022; 58(14): 3976-3984. doi: 10.1080/1540496X.2022.2079974
26. Dai J, Montabon FL, Cantor DE. Linking rival and stakeholder pressure to green supply management: Mediating role of top management support. Transportation Research Part E: Logistics and Transportation Review. 2014; 71: 173-187. doi: 10.1016/j.tre.2014.09.002
27. Helmig B, Spraul K, Ingenhoff D. Under positive pressure: How stakeholder pressure affects corporate social responsibility implementation. Business & Society. 2016; 55(2), 151–187. doi: 10.1177/0007650313477841
28. Montabon F, Sroufe R, Narasimhan R. An examination of corporate reporting, environmental management practices, and firm performance. Journal of Operations Management. 2007; 25(5): 998-1014. doi: 10.1016/j.jom.2006.10.003
29. Wang S, Li, Zhao D. Institutional pressures and environmental management practices: The moderating effects of environmental commitment and resource availability. Business Strategy and the Environment. 2018; 27: 52-69. doi: 10.1002/bse.1983
30. Le Y. Green entrepreneurial orientation: The driving factors and its impact on firm performance. [Doctoral Dissertations, Jilin University]. 2022. doi: 10.27162/d.cnki.gjlin.2022.007125
31. Teece DJ. The foundation of enterprise performance: Dynamic and ordinary capabilities in an (economic) theory of the firm. Academy of Management Perspectives. 2014; 28(4): 328-352. doi: 10.5465/amp.2013.0116
32. Teece DJ. Explicating dynamic capabilities: The nature and micro-foundations of (sustainable) enterprise performance. Strategic Management Journal. 2007; 28(13): 1319-1350. doi: 10.1002/smj.640
33. Amui LBL, Jabbour CCJ, de Sousa Jabbour AB, et al. Sustainability as a dynamic organizational capability: A systematic review and a future agenda toward a sustainable transition. Journal of Cleaner Production. 2017; 142: 308-322. doi: 10.1016/j.jclepro.2016.07.103
34. Lin YH, Chen YS. Determinants of green competitive advantage: the role of green knowledge sharing, green dynamic capabilities, and green service innovation. Quality & Quantity. 2017; 51(4): 1663-1685. doi: 10.1007/s11135-016-0358-6
35. Majid A, Yasir M, Yasir M, et al. Nexus of institutional pressures, environmentally friendly business strategies, and environmental performance. Corporate Social Responsibility and Environmental Management. 2019; 27(2): 706-716. doi: 10.1002/csr.1837
36. Huang YM, Chen C, Lei LJ, et al. Impacts of green finance on green innovation: A spatial and nonlinear perspective. Journal of Cleaner Production. 2022; 365(10): 132548. doi: 10.1016/j.jclepro.2022.132548
37. Goyal L. Stakeholder theory: Revisiting the origins. Journal of Public Affairs. 2022; 22(3): 1-8. doi: 10.1002/pa.2559
38. Bhatia MS, Kumar S. Linking stakeholder and competitive pressure to industry 4.0 and performance: Mediating effect of environmental commitment and green innovation. Business Strategy and the Environment. 2022; 31(5): 1905-1918. doi: 10.1002/bse.2989
39. Hofman PS, Blome C, Schleper MC, et al. Supply chain collaboration and eco-innovations: An institutional perspective from China. Business Strategy and the Environment. 2020; 29(6): 2734-2754. doi: 10.1002/bse.2532
40. Cui R, Wang J. Shaping sustainable development: External environmental pressure, exploratory green learning, and radical green innovation. Corporate Social Responsibility and Environmental Management. 2022; 29(3): 481-495. doi: 10.1002/csr.2213
41. Nguyen H, Onofrei G, Yang Y, et al. Handling customer green pressures: The mediating role of process innovation among export-oriented manufacturing industries. Business Strategy and the Environment. 2023; 32(4): 2312-2326. doi: 10.1002/bse.3250
42. Wang CH. An environmental perspective extends market orientation: Green innovation sustainability. Business Strategy and the Environment. 2020; 29(8), 3123-3134. doi: 10.1002/bse.2561
43. Aboelmaged M, Hashem G. Absorptive capacity and green innovation adoption in SMEs: The mediating effects of sustainable organizational capabilities. Journal of Cleaner Production. 2019; 220: 853-863. doi: 10.1016/j.jclepro.2019.02.150
44. Singh SK, Giudice MD, Chierici R, et al. Green innovation and environmental performance: The role of green transformational leadership and green human resource management. Technological Forecasting and Social Change. 2020; 150: 119762. doi: 10.1016/j.techfore.2019.119762
45. Child J. Strategic choice in the analysis of action, structure, organizations, and environment: retrospect and prospect. Organization Studies. 1997; 18(1): 43-76. doi: 10.1177/017084069701800104
46. Andersen O, Kheam LS. Resource-based theory and international growth strategies: an exploratory study. International Business Review. 1998; 7(2): 163-184. doi: 10.1016/S0969-5931(98)00004-3
47. Zhang G, Zhang XJ. Driver factors of corporate green innovation strategy based on planning behavior theory. Journal of Business Economics. 2013; (7): 47-56. doi: 10.14134/j.cnki.cn33-1336/f.2013.07.009
48. Hambrick DC, Mason PA. Upper echelons: the organization as a reflection of its top managers. Academy of Management Review. 1984; 9(2): 193-206. doi: 10.5465/amr.1984.4277628
49. Song C, Nahm AY, Song Z. Executive technical experience and corporate innovation quality: evidence from Chinese listed manufacturing companies. Asian Journal of Technology Innovation. 2022; 31(1): 94-114. doi: 10.1080/19761597.2021.2020137
50. Shao D, Zhao S, Wang S, et al. Impact of CEOs’ academic work experience on firms’ innovation output and performance: evidence from Chinese listed companies. Sustainability. 2020; 12(18): 7442. doi: 10.3390/su12187442
51. Naffziger DW, Ahmed NU, Montagno RV. Perceptions of environmental consciousness in US small business: An empirical study. Sam Advanced Management Journal. 2003; 68(2): 23-32. https://www.proquest.com/scholarly-journals/perceptions-environmental-consciousness-u-s-small/docview/231256554/se-2
52. Luo Y, Wang Q, Long X, et al. Green innovation and SO2 emissions: Dynamic threshold effect of human capital. Business Strategy and the Environment. 2023; 32(1): 499-515. doi: 10.1002/bse.3157
53. Kirchoff JF, Tate WL, Mollenkopf DA. The impact of strategic organizational orientations on green supply chain management and firm performance. International Journal of Physical Distribution & Logistics Management. 2016; 46(3): 269-292. doi: 10.1108/IJPDLM-03-2015-0055
54. Peng XR, Wei J. Stakeholders’ environmental orientation and eco-innovation: The moderating role of top managers’ environmental awareness. Studies in Science of Science. 2015; 33(7): 1109-1120. doi: 10.16192/j.cnki.1003-2053.2015.07.018
55. Cao HJ, Chen ZW. The driving effect of internal and external environment on green innovation strategy: The moderating role of top management’s environmental awareness, Nankai Business Review. 2017; 20(6): 95-103.
56. Jiang W, Chai H, Shao J, et al. Green entrepreneurial orientation for enhancing firm performance: A dynamic capability perspective. Journal of Cleaner Production. 2018; 198: 1311-1313. doi: 10.1016/j.jclepro.2018.07.104
57. Nordin R, Hassan RA. The role of opportunities for green entrepreneurship towards investigating the practice of green entrepreneurship among SMEs in Malaysia. Review of Integrative Business and Economics Research. 2019; 8(1): 99-116.
58. Nunnnally JC. An Overview of Psychological Measurement. In: Wolman, B.B. (eds) Clinical Diagnosis of Mental Disorders. Springer, Boston, MA. 1978; doi: 10.1007/978-1-4684-2490-4_4
59. Fornell C, Larcker DF. Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research. 1981; 18(1): 39-50. doi: 10.1177/002224378101800104
60. Jackson DL, Gillaspy Jr JA, Purc-Stephenson R. Reporting practices in confirmatory factor analysis: An overview and some recommendations. Psychological Methods. 2009; 14(1): 6-23. doi: 10.1037/a0014694
61. Preacher KJ, Hayes AF. Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behavior Research Methods. 2008; 40(3): 879-891. doi: 10.3758/BRM.40.3.879
62. Aragon-Correa JA, Marcus AA, Vogel D. The effects of mandatory and voluntary regulatory pressures on firms’ environmental strategies: A review and recommendations for future research. Academy of Management Annals. 2020; 14(1): 339-365. doi: 10.5465/annals.2018.0014
63. Dechezlepretre A, Sato M. The impacts of environmental regulations on competitiveness. Review of Environmental Economics and Policy. 2017; 11(2): 183-206. doi: 10.1093/reep/rex013
64. Horbach J. Determinants of environmental innovation – new evidence from German panel data sources. Research Policy. 2008; 37(1): 163-173. doi: 10.1016/j.respol.2007.08.006
65. Murillo-Luna JL, Garces-Ayerbe C, Rivera-Torres P. Why do patterns of environmental response differ? A stakeholder’s pressure approach. Strategic Management Journal. 2008; 29(11): 1225-1240. doi: 10.1002/smj.711
66. Zhang J, Zhu M. When can B2B firms improve product innovation capability (PIC) through customer participation (CP)? The moderating role of inter-organizational relationships? Journal of Business & Industrial Marketing. 2019; 34(1): 12-23. doi: 10.1108/JBIM-09-2016-0214
67. Huang SZ, Tian HH, Cheablam O. Promoting sustainable development: Multiple mediation effects of green value co-creation and green dynamic capability between green market pressure and firm performance. Corporate Social Responsibility and Environmental Management. 2023; 31: 1063-1078. doi: 10.1002/csr.2613
68. Liao ZJ, Liu P, Tan YY, et al. Research progress and review on driving factors of firm’s environmental innovation: From the perspective of stakeholder. Environmental Pollution & Control. 2023; 45(10): 1440-1446, 1466. doi: 10.15985/j.cnki.1001-3865.2023.10.018
69. Antonia MG, Antonio D. Sustainable development barriers and pressures in SMEs: The mediating effect of management commitment to environmental practices. Business Strategy and the Environment. 2023; 33: 949-967. doi: 10.1002/bse.3537
70. Kang LQ, Liu HM, Qian JJ. Influence of top managers’ long-term orientation on enterprise green innovation: Moderating role of environmental dynamics and the mediating effect of strategic learning capability. Journal of Business Economics. 2021; (10): 34-48. doi: 10.14134/j.cnki.cn33-1336/f.2021.10.003
71. Quan XF, Ke Y, Qian YT, et al. CEO foreign experience and green innovation: evidence from China. Journal of Business Ethics. 2023; 182: 535-557. doi: 10.1007/s10551-021-04977-z
72. Ren,S, Jiang KF, Tang GY. Leveraging green HRM for firm performance: The joint effects of CEO environmental belief and external pollution severity and the mediating role of employee environmental commitment. Human Resource Management, 2022; 61(1): 1-16. doi: 10.1002/hrm.22079
73. Clemens B, Douglas TJ. Does coercion drive firms to adopt ‘voluntary’ green initiatives? Relationships among coercion, superior firm resources, and voluntary green initiatives. Journal of Business Research. 2006; 59(4): 483-491. doi: 10.1016/j.jbusres.2005.09.016
74. Scott WR. Institutions and organizations: Ideas, interests, and identities. Sage Publications. 2013.
75. Selznick P. TVA and the grass roots: A study in the sociology of formal organization. University of California Press, Berkeley, CA.1949.
76. Yu F, Hu C, Liu M. Network density, attention allocation of TM and firm green innovation: The moderating effect of institutional pressure. Journal of Industrial Engineering/Engineering Management. 2021; 35(2): 55-66. doi: 10.13587/j.cnki.jieem.2021.02.006
77. Xu J, Guan J, Lin Y. Institutional pressures, top managers’ environmental awareness and environmental innovation practices: An institutional theory and upper echelons theory perspective. Management Review. 2017; 29(9): 72-83. doi:10.14120/j.cnki.cn11-5057/f.2017.09.007
78. Hung RYY, Yang B, Lien BY, et al. Dynamic capability: Impact of process alignment and organizational learning culture on performance. Journal of World Business. 2010; 45: 285-294. doi: 10.1016/j.jwb.2009.09.003
79. Ar IM. The impact of green product innovation on firm performance and competitive capability: the moderating role of managerial environmental concern. Procedia-Social and Behavioral Sciences. 2012; 62: 854–864. doi: 10.1016/j.sbspro.2012.09.144
80. Chen J, Liu L. Customer participation, and green product innovation in SMEs: the mediating role of opportunity recognition and exploitation. Journal of Business. Research. 2020; 119: 151-162. doi: 10.1016/j.jbusres.2019.05.033
81. Xie X, Huo J, Zou, H. Green process innovation, green product innovation, and corporate financial performance: a content analysis method. Journal of Business Research. 2019; 101: 697–706. doi: 10.1016/j.jbusres.2019.01.010
82. Wang MY, Li YM, Li JQ, et al. Green process innovation, green product innovation, and its economic performance improvement paths: A survey and structural model. Journal of Environmental Management. 2021; 297: 113282. doi: 10.1016/j.jenvman.2021.113282
83. Cai W, Li G. The drivers of eco-innovation and its impact on performance: evidence from China. Journal of Cleaner Production. 2018; 176: 110–118. doi: 10.1016/j. jclepro.2017.12.109
84. Chiou TY, Chan HK, Lettice F, et al. The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan. Transportation Research Part E: Logistics and Transportation View. 2011; 47(6): 822–836. doi: 10.1016/j.tre.2011.05.016
85. 29.Wang L, Li W, Qi L. Stakeholder pressures and corporate environmental strategies: a meta-analysis. Sustainability. 2020; 12(3): 1172. doi: 10.3390/su12031172
DOI: https://doi.org/10.59429/esp.v9i10.3069
(43 Abstract Views, 24 PDF Downloads)
Refbacks
- There are currently no refbacks.
Copyright (c) 2024 Xiaofang Lin, Wunhong Su
This work is licensed under a Creative Commons Attribution 4.0 International License.