While green innovation has a positive impact on firms’ performance, some established firms that initiate green innovation activities could suffer from insufficient new green knowledge and skills. Since adopting a sustainability orientation helps firms commit to the creation of superior sustainable practices, and efficiently invest resources necessary to develop appropriate new green products, leading to superior green innovation performance, sustainability orientation offers an alternative approach for diversifying green entrants to achieve green innovation success. Building on resource-based, knowledge-based, and capabilities theories, (...) this study aims to identify key factors that enable sustainability orientation of diversifying green entrants and enhance its effect on green innovation performance. As sustainability issues frequently occur upstream at the supplier level, and since supplier involvement effectively determines new product success, this study theorizes that diversifying green entrants that adopt sustainability orientation require two types of green supplier involvement to enhance the effect of sustainability orientation on green innovation performance. Green knowledge-processing capability and green R&D capability complement green supplier involvement as a knowledge source and green supplier involvement as a co-creator, respectively, to further enhance the amount of green innovation performance. Based on a longitudinal dataset of 336 diversifying green entrants, the results support all our hypotheses. Interestingly, an additional analysis suggests that when diversifying green entrants implement green supplier involvement as a co-creator, they achieve greater green innovation performance than those who implement green supplier involvement as a knowledge source. These findings provide important theoretical implications and practical guidance for established firms to pursue green innovation. (shrink)

This article proposed four novel constructs – green brand image, green satisfaction, green trust, and green brand equity, and explored the positive relationships between green brand equity and its three drivers – green brand image, green satisfaction, and green trust. The object of this research study was information and electronics products in Taiwan. This research employed an empirical study by use of the questionnaire survey method. The questionnaires were randomly mailed to consumers who had the experience of purchasing information and (...) electronics products. The results showed that green brand image, green satisfaction, and green trust are positively related to green brand equity. Furthermore, the positive relationship between green brand image and green brand equity is partially mediated by green satisfaction and green trust. Hence, investing on resources to increase green brand image, green satisfaction, and green trust is helpful to enhance green brand equity. (shrink)

In China, many firms advertise that they follow environmentally friendly practices to cover their true activities, a practice called greenwashing, which can cause the public to doubt the sincerity of greenization messages. In this study, I investigate how the market values greenwashing and further examine whether corporate environmental performance can explain different and asymmetric market reactions to environmentally friendly and unfriendly firms. Using a sample from the Chinese stock market, I provide strong evidence to show that greenwashing is significantly negatively (...) associated with cumulative abnormal returns around the exposure of greenwashing. In addition, corporate environmental performance is significantly positively associated with CAR around the exposure of greenwashing. Furthermore, my findings suggest that corporate environmental performance has two distinct effects on CAR around the exposure of greenwashing: the competitive effect for environmentally friendly firms and the contagious effect for potential environmental wrongdoers, respectively. The results are robust to various sensitivity tests. (shrink)

The paper explores the influence of greenwash on green trust and discusses the mediation roles of green consumer confusion and green perceived risk. The research object of this study focuses on Taiwanese consumers who have the purchase experience of information and electronics products in Taiwan. This research employs an empirical study by means of the structural equation modeling. The results show that greenwash is negatively related to green trust. Therefore, this study suggests that companies must reduce their greenwash behaviors to (...) enhance their consumers’ green trust. In addition, this study finds out that green consumer confusion and green perceived risk mediate the negative relationship between greenwash and green trust. The results also demonstrate that greenwash is positively associated with green consumer confusion and green perceived risk which would negatively affect green trust. It means that greenwash does not only negatively affect green trust directly but also negatively influence it via green consumer confusion and green perceived risk indirectly. Hence, if companies would like to reduce the negative relationship between greenwash and green trust, they need to decrease their consumers’ green consumer confusion and green perceived risk. (shrink)

This study utilizes structural equation modeling (SEM) to explore the positive effect of corporate environmental ethics on competitive advantage in the Taiwanese manufacturing industry via the mediator: green innovation performance. This study divides green innovation into green product innovation and green process innovation. The empirical results show that corporate environmental ethics positively affects green product innovation and green process innovation. In addition, this study verifies that green product innovation mediates the positive relationship between corporate environmental ethics and competitive advantage, but (...) green process innovation does not. Therefore, corporate environmental ethics can not only affect competitive advantage directly, but also influence it indirectly via green product innovation in the Taiwanese manufacturing industry. Taiwanese manufacturing companies can increase their corporate environmental ethics and green product innovation to enhance their competitive advantages. (shrink)

Green technology innovation (GTI) has been increasingly adopted by firms worldwide to promote sustainable development, whereas its potential downsides have been largely overlooked. Drawing on moral licensing theory, we devise a framework to reveal the potential dark side of firms’ GTI on corporate social responsibility (CSR). We argue that with the global eco-awakening, GTI has been an efficient means for firms to meet their stakeholders’ expectations and environmental legitimacy. This may cause a moral licensing effect for senior executives’ ethical strategic (...) decision-making, due to their belief that existing GTI could balance the firm’s subsequent moral neglect, thereby minimizing firms’ CSR. Using the Chinese listed manufacturing firms as a sample, we find empirical support for our prediction. In addition, we investigate how firms’ environmental awards and honors may exacerbate the negative impact of GTI on CSR, whereas the presence of women executives may mitigate the relation. Our findings can trigger firms’ reflections on GTI’s downsides, and contribute to research and practice in comprehensively understanding firms’ GTI consequences, CSR decisions, and moral balance. (shrink)

In this study, we examine how top management teams' foreign experience affects firms' green innovation performance and what role environmental regulation plays in their association. Using a large data set on firms' green patents and foreign work or education experience of top management teams from China, we find robust evidence that firms whose top management team members have foreign experience achieve significantly more green patents, and this positive relationship is more pronounced for firms subject to strong environmental regulation. Our findings (...) indicate that via enhancing firms' green innovation performance, top management teams' foreign experience has a positive corporate governance effect on advancing sustainable social development, and environmental regulation is helpful to promote this effect. (shrink)

Synthesizing insights from a dynamic capability perspective and social network theory, this study identifies the factors influencing green innovation and examines the relationships between influencing factors, green innovation, and performance. This study uses structural equation modeling to test the research hypotheses. The results indicate that dynamic capability, coordination capability, and social reciprocity are significant drivers of green innovation, including green product innovation and green process innovation. Green product and process innovation have positive effects on environmental performance and organizational performance. These (...) findings are relevant to firms in quest of green management and innovation. (shrink)

This article investigates the moderating effects of organizational social consciousness on the natural environmental competency and innovativeness relationship. Organizational social consciousness reflects the organization’s awareness of its place and contribution to the larger system in which it exists and is developed through an organization’s social responsibility, ethics, culture, corporate values, and the view of its stakeholders. Through our study of key strategic decision makers from organizations located in the USA, we operationalize organizational social consciousness and demonstrate the efficacy of this (...) construct in relation to the organizational-level constructs of environmental management competency and innovativeness. Our results reveal that organizational social consciousness positively strengthens the natural environmental competency to organizational innovativeness relationship. (shrink)

Our analysis of recent survey data of US small- and medium-sized enterprises explores the question of how these entrepreneurial ventures can do well by doing good—i.e., how they can build a competitive advantage with their social and environmental practices. We focus on several firm characteristics and choices involving motivations and capabilities. We use hierarchical OLS to analyze the survey data to find that an orientation to, commitments to, and dynamic flexibility in, the firm’s CSR and green policies are significant factors (...) in a firm’s CSR- and green-based competitive advantages. So, while some tradeoffs are likely between activities aimed at financial performance and those also aimed at improving social/environmental performance, opportunities do exist for small- and medium-sized enterprises to do both well and good. We consider several implications for theory and practice that continue in this instrumentalist perspective. (shrink)

Because no previous literature discusses the determinants of green product development performance, this study develops an original framework to fill the research gap. This study explores the influences of green dynamic capabilities and green transformational leadership on green product development performance and investigates the mediation role of green creativity. The results demonstrate that green dynamic capabilities and green transformational leadership positively influence green creativity and green product development performance. Besides, this study indicates that the positive relationships between green product development (...) performance and their two antecedents—green dynamic capabilities and green transformational leadership—are partially mediated by green creativity. It means that green dynamic capabilities and green transformational leadership can not only directly affect green product development performance positively but also indirectly affect it positively via green creativity. Hence, companies have to increase their green dynamic capabilities, green transformational leadership, and green creativity to enhance their green product development performance. (shrink)

Firms worldwide are increasingly required to disclose their carbon emissions due to the environmental damage associated with climate change. Because there has been no previous literature focusing on the determinants of corporate carbon disclosure integrating environmental legitimacy and green innovation, the present study attempted to develop an original framework to fill the research gap. This study explored the influence of environmental legitimacy on corporate carbon disclosure, and investigated the role of green innovation as a mediator. With the samples of Carbon (...) Disclosure Project in China from 2008 to 2012, the results demonstrate that environmental legitimacy significantly negatively influences the likelihood of corporate carbon disclosure, and that green process innovation mediates the relationship, while green product innovation has no significant mediating effect. It means that environmental legitimacy not only directly affects the likelihood of corporate carbon disclosure, but also indirectly affects it via green process innovation. Hence, companies must increase both informal and formal mechanisms, i.e., external environmental legitimacy and internal green process innovation, to engage in carbon information disclosure and ensure sustainability. (shrink)

This study aims to map out the relationships that make up green innovation initiatives in Brazilian industry. The sample comprised 100 managers at manufacturing companies, most of them operating in the business of farm machinery and equipment and steel structures. To develop this study, Medeiros et al. study, mapping critical factors that drive the success of green product innovation and the paradigm of complexity, was used as a reference study. Based on the results, it was possible to identify that the (...) operational dynamic of the factors and variables that affect market success do not happen in an isolated or fragmented way; they occur systematically with different contingencies and structured basic and intermediate skills in order to meet the expectations of consumers, laws, and environmental legislation. Initially, the technological expertise factor was noted as very important for sustaining green product innovation. Furthermore, since proactive leaders are an important factor for successfully developing environmentally sustainable products, it must be added to technological expertise as the foundation for developing green innovation. After defining the basis for green product innovation, the intermediary conditions necessary for using the available technology appropriately were mapped out. In this sense, variables such as “elimination of cultural barriers,” “capacity for critical reflective analysis,” and “experimentation” are also very important. In addition, some of the variables of the cross-functional collaboration and market knowledge factors were a part of the structure that organizations need to transform potential into developing green products, which is the basis for the third level of the model. The fourth level of the model has the “meeting consumer expectations” and “following law and legislation” factors, which make up the main goals for developing environmentally sustainable products according to a number of surveys that were conducted. (shrink)

Does responsible leadership matter when assembling an inclusive supply chain at the Base-of-the-Pyramid? Current literature implicitly assumes that it does not. BOP scholars initially focused on the importance of shaping innovative and disruptive offerings, with radically improved price–performance ratios. Subsequent studies tended to focus on barriers to implementation of large-scale ventures at the BOP. Their common characteristic was the fact that the attributes and roles of the individuals involved were deemed unimportant. If the opportunity was there, provided barriers were removed (...) and the right value proposition was offered, the inclusive venture should take off. We evaluate three cases of leaders who succeeded in building inclusive ventures at the BOP, in contexts marked by institutional voids—where formal markets were weakly structured or nonexistent. Building a viable business under those circumstances entailed two tasks: imagining what is possible and then turning that vision into a reality. We found that, in carrying out those tasks, individuals do matter. Sampled cases show that working with nontraditional partners in inclusive supply chains requires more than aligning material incentives. Our analysis suggests that responsible leadership with a strong ethical foundation can provide powerful leverage to ensure buy-in and commitment from the various actors involved. We show how RL can impact organizations and external stakeholders through positive upward spirals. Our analysis contributes to the literature on BOP and RL by confirming, extending, and challenging existing knowledge. We propose two novel attributes and argue that context matters, influencing how RL is operationalized and defined. Understanding the critical role of RL in the construction of inclusive supply chains adds a critical missing link that sheds light into the micro level of new business creation, development, and consolidation at the BOP. (shrink)

This study explores the impact of CEO ability on corporate environmental sustainability information disclosure. We take samples from Chinese A-share listed companies from 2010 to 2019 and use the ordinary least squares as a baseline regression model to check the relationship between CEO ability and corporate environmental sustainability information disclosure. Our findings are robust to different corporate environmental sustainability information disclosure measures and CEO ability. We found a positive association between CEO ability and corporate environmental sustainability information disclosure; thus, firms (...) with a more able CEO are more likely to disclose more corporate environmental sustainability information. Our results also found a significant negative interaction coefficient between CEO ability and CEO career concerns. As the CEO grows older, his/her ability decreases; therefore, corporate environmental sustainability information disclosure reduces. Furthermore, we document that a female CEO strengthens the relationship between CEO ability and corporate environmental sustainability information disclosure. The study results are important for understanding corporate environmental responsibility development and implementation, particularly in China. (shrink)

Does being green facilitate product innovation? This study examines whether green management in firms operating in China fosters radical product innovation to a greater extent than it does incremental product innovation and investigates the underlying institutional mechanisms involved in the relationship between green management and product innovation. The findings show that green management is more likely to lead to radical product innovation than to incremental product innovation. Moreover, government support as a formal institutional benefit more strongly mediates the effect of (...) green management on radical product innovation than its effect on incremental product innovation; whereas social legitimacy as an informal institutional benefit more strongly mediates the effect of green management on incremental product innovation than its effect on radical product innovation. These findings provide important implications for explaining how firms employ green management to facilitate product innovation. (shrink)

A steady demand for green products from concerned consumers has led companies to introduce new product lines that match or exceed consumer environmental concerns. Nonetheless, not all the organizations were able to achieve significant returns on their investments in green products. These failures are generally attributed towards companies’ inability to overcome consumer scepticism towards the performance of functional and green attributes of their brands to generate a positive green image and green value in consumers mind. Therefore, the question arises that (...) does the success in promoting green brand image and value depend on consumer existing perceptions about the brand quality and credibility? This study analyzes the influence of brand perceive quality and credibility on consumer perceptions towards a brand green image, green value and green equity. A theoretical model with hypothesized relationships is developed and tested to answer these research questions. Data have been collected from the consumers of electrical and electronic goods. The hypothesized relationships were tested with the help of structural equation modeling procedure. The results suggest that brand perceived quality and its overall credibility does have a significant influence on generating a greener image, green perceive value and green brand equity. (shrink)

Global environmental problems, such as global warming, pollution, or deforestation, are critical issues that require a rapid and common response. In this context, companies play a decisive role in achieving environmental objectives through the ecological knowledge they can store and manage. In this context, the present research focuses its interest on analyzing how the set of green intangibles possessed by organizations, i.e., Green Intellectual Capital, affects their Green Performance. Specifically, the study shows how GP is influenced by GIC through the (...) mediating role of the Green Innovation variable. Therefore, the research questions to be answered by this study are as follows: Does GIC influence environmental performance? Does GI mediate the GIC-GP relationship? What actions can companies take to improve their GP? There are several reasons that have led us to carry out this research. First, there is little empirical evidence of the relationships proposed in this study. Second, to the best of our knowledge, there is no previous research that has contextualized the relationships raised in the wine industry, thus representing an advance in the comprehension of the constructs studied. Third, GIC represents an incipient field of study that needs to be developed and established within the literature linked to Intellectual Capital. In order to achieve the proposed objectives, data from a survey of 202 wineries in Spain were used and a quantitative approach was followed using Structural Equation Modeling. The results of the research indicate that there is a positive and significant relationship between GIC and GP. In addition, GI partially mediates the relationship between these two variables, playing a key role in the environmental management of wineries. The theoretical and practical contributions of the study improve the understanding of the relationships raised, being a pioneering study due to its contextualization in the wine industry, as well as providing a series of guidelines for both environmental managers and winemakers to improve their GP. (shrink)

Green innovation investments have rapidly grown since 2000. Green innovation indexes play important roles and are typically constructed by screening and indexing. However, Nobel Laureate Markowitz emphasizes portfolio selection instead of security selection and accentuates that “A good portfolio is more than a long list of good stocks.” Moreover, the screening-indexing strategies ignore that investors can take green innovation as an additional objective and thus gain additional utility. We consequently construct 3-objective portfolio selection for green innovation in addition to variance (...) and expected return. An efficient frontier of portfolio selection then extends to an efficient surface which is a panorama of the optimal variance, expected return, and expected green innovation. Investors thus fully envisage the trade-offs and enjoy the freedom of choosing preferred portfolios on the surface. In contrast, the screening-indexing strategies inflexibly leave investors with only one point. As the originality, we prove in a theorem that there typically exists a curve on the efficient surface so all portfolios on the curve dominate the green innovation index. We test the dominance by component stocks of China Securities Index 300 and obtain affirmative results out of sample. The results still hold in robustness tests. At last, we classify green innovation into categories, further model the categories by general k -objective portfolio selection, and still illustrate the dominance. Consequently, investors can consider and control each category. (shrink)

Environmental research has usually highlighted that the existence of slack resources in an organization helps allocate investment to innovative initiatives. However, the existing literature has paid very limited attention to how slack resources can influence the effects of focused and diversified innovations in different ways. Agency theory scholars claim that a manager’s first preference when confronted with discretionary resources will not generate positive investments for the firm, but their own opportunistic preferences. The differences between focused and diversified environmental innovations allow (...) us to gain a better understanding of the financial impact of being focused and how slack resources matter in this context. We analyze a longitudinal sample of 5845 environmental patents from the 75 largest companies in the electrical components and equipment industry worldwide. Our results show that high levels of slack resources reduce the existing positive relationship between focused environmental innovations and a firm’s financial performance. These results contribute to delineating the theoretical and empirical implications of focused versus diversified environmental innovations and extend the literature on ethical dilemmas concerning managers’ use of slack resources in the firm. (shrink)

By exploring whether nanotechnologies have the potential to generate green innovations, we consider the paradox between the negative and positive side-effects that could come with the development of nanotechnologies. Starting from the conceptual framework of green product innovation, the potential green innovation activity of more than 14,000 firms of the nanotech sector is investigated. Using a query-search method, their patenting activity is explored. Results first show that there is an increasing trend toward the creation of fundamental green knowledge by firms (...) involved in nanotechnologies; second, they demonstrate that energy efficiency is the main driver of green knowledge creation in the sector and third they reveal the main characteristics of nanotech firms creating green knowledge. Beyond their contribution to the debate between positive and negative outcomes of nanotechnology developments, these results also enrich the conceptual framework of green product innovation—a key route to achieving sustainability at the same time as growth. (shrink)

Since it implies a reduction in the quality and the quantity of the natural resources, environmental degradation is a present day problem that requires immediate solutions. This situation is driving firms to undertake an environmental transformation process with the purpose of reducing the negative externalities that come from their economic activities. Within this context, environmental marketing is an emerging business philosophy by which organizations can address sustainability issues. Moreover, environmental marketing and orientation are seen as valuable strategies to improve a (...) firm's competitiveness. However, the literature that has analyzed the link between environmental strategies and firms' results has been inconclusive and contradictory. In this study, we propose and test a model that analyses how the implementation of ecological issues within a firm's marketing strategy and orientation influences organizational results. Data were obtained through a survey sent to Spanish manufacturing firms. The results show that environmental marketing positively affects firms' operational and commercial performance and this improvement will influence their economic results. Moreover, environmental marketing is revealed as an excellent strategy to obtain competitive advantages in costs and in product differentiation. Thus, this study agrees with the researchers who affirm that environmental strategies positively affect firm's competitiveness while reducing environmental impact. (shrink)

Responsible management competences are the skills of managers to deal with the triple bottom line, stakeholder value and moral dilemmas. In this paper, we analyse how managers develop responsible management competences and how the competences interact with capabilities at the organisational level. The paper contributes to the responsible management literature by integrating research on absorptive capacity and organisational learning. By creating intersections between these disparate research streams, this study enables a better understanding of the development of responsible management competences. The (...) paper is a systematic literature review on environmental competences, which are a type of responsible management competences referring to the managerial skills aimed at improving environmental sustainability. The findings demonstrate that managers who are able to recognize and acquire external knowledge develop environmental competences, and organisations capable of assimilating, transforming and exploiting knowledge develop environmental capabilities. The paper establishes that a dynamic and recursive relation exists between environmental competences and capabilities. Antecedents and contextual conditions specific to a sustainability context, such as eco-centric values and stakeholder pressures, influence the development of environmental competences. The study shows that environmental competences have a positive direct effect on environmental performance, and an indirect effect as a mediator between environmental capabilities and performance. (shrink)

This study extends previous literature on the association between corporate social responsibility and corporate financial behavior by investigating the influence of corporate environmental performance on the cost of debt. Using a sample of Chinese private-owned firms, we document strong and consistent evidence to show that corporate environmental performance is significantly negatively associated with the interest rate on debt—the proxy for the cost of debt. The findings suggest that lenders applaud better environmental performance. Moreover, internal control attenuates the negative association between (...) corporate environmental performance and the interest rate on debt, implying substitutive effects between corporate environmental performance and internal control on the reduction of interest rates on debt. The results are robust to various sensitivity tests and are still valid after controlling for the potential endogeneity between corporate environmental performance and the interest rate on debt. (shrink)

Industrial pollution is of both national and international concern in the context where one country's emissions contribute to the problem of global warming. Existing studies have focused on government and regulations rather than on employees. The context of this study is in respect of 472 workers in seven Chinese energy companies in Shanxi province in China, one of the biggest coal mining regions and a region most responsible for environmental pollution. The key findings are two-fold: first, employees' values were positively (...) correlated with attitudes toward the environment, which also correlates with perceived corporate citizenship; second, the ownership type of the firm had a significant influence on corporate citizenship, employee values and their attitudes toward environment. Contrary to existing beliefs, Stateowned enterprises in China have much poorer ratings on all the three constructs compared to privately owned companies. The results highlight the role of the government and policy makers in shaping employees' attitudes toward the environment, and in turn the corporate citizenship of the Chinese energy industry. (shrink)

As part of a new focus on sustainability, this study examines the effects of technological attributes, market potential, and environmental factors on the commercialization of technologies. A survey was conducted on two of Taiwan’s promising sustainable high-tech industries—solar photovoltaic (PV) and light emitting diodes (LEDs). We found that if the technologies possess the specific attributes of innovativeness, genericness, simplicity, and compatibility, as required by the potential adopters, the level of market potential will be more favorable and technology commercialization (TC) probability (...) will be higher. In addition, the results of regression analysis indicate that environmental requirements play moderating roles in affecting the relationships between market potential and TC probability. The empirical findings highlight the role of market potential as a mediator between technological attributes and the likelihood of commercialization. Furthermore, environmental factors moderate the influence of market potential on TC. The results of this study can provide firms’ operations with insights into resource allocation, sustainable development, and competitive advantages in an intensely competitive environment. (shrink)

This paper examines the impact of China’s new environmental protection law on green innovation. Using a large sample of Chinese prefecture-level cities for the 2010–2016 period and the difference-in-differences methodology, we provide strong evidence that the new environmental protection law promotes green innovation. This finding is robust to a battery of sensitivity tests. The micromechanism analysis shows that the new environmental protection law can promote green innovation by imposing stricter financial constraints on enterprises in high-pollution industries and increasing their incentives (...) for green innovation to meet green credit requirements. Further, we find that the impact of the new environmental protection law on green innovation is more prominent in prefecture-level cities with a lower level of banking competition and for prefecture-level cities with stronger intellectual property protection. Overall, these findings suggest that the new environmental protection law has played an important role in promoting green innovation in China. To improve the effect of the new environmental protection law on green innovation, the government can consider lowering banking competition and strengthening intellectual property protection. (shrink)