Green and competitive? An empirical test of the mediating role of environmental innovation strategy (original) (raw)

The mediating role of environmental innovation in the relationship between environmental management and firm performance in a multi-stakeholder environment

Nowadays, firms are increasingly challenged to bridge potentially conflicting economic interests of primary commercial stakeholders and sustainability demands from secondary non-commercial stakeholder groups. While a number of firms view investments in environmental management as disconnected from their value-creating activities, others have reported achieved cost efficiency and differentiation advantages. Prior research suggests that environmental innovation might be the missing link between environmental management and firm performance. However, the mediating effect of environmental innovation in the relationship between environmental management and a firm’s performance had not been empirically tested so far. Our paper provides a contribution by conducting an empirical investigation into this possible mediating effect. Although the presumed mediating role of environmental innovation suggests that it is influenced by internal environmental management, environmental innovation literature is especially concerned with the role of external stakeholders in environmental innovation. This study investigates the role of the engagement of stakeholders such as supply chain partners, industry, and public authorities in environmental impact reduction. We hypothesise that environmental innovation positively mediates the relationship between environmental management and firm performance, and that the engagement of stakeholders has a positive impact on environmental innovation. The research model was tested with a variance-based structural equation model using data from 90 Dutch food and beverage firms. The results confirm the positive mediating effect of environmental process innovation on the relationship between environmental management and cost efficiency advantage. Environmental product innovation contributes to a differentiation advantage but it is not significantly influenced by environmental management. So we could not support a positive mediating effect of environmental product innovation on the relationship between environmental management and differentiation advantage. Instead, environmental collaboration with supply chain partners has a strong positive impact on environmental product innovation. It also positively influences environmental process innovation but this influence is much weaker than the influence of internal environmental management. Our findings can assist managers in their decision making regarding the implementation of environmental innovations and environmental collaboration with external parties. The study is also relevant to policy makers as a tool to assess the appropriateness of their policy.

Effects of Green Innovation on Environmental and Corporate Performance: A Stakeholder Perspective

"Going green" has become an important environmental issue in contemporary business practice worldwide. This study examined the influence of a number of factors on green innovation and the consequences in terms of performance. The stakeholder theory was adopted to observe the effects of each stakeholder on the green innovation practices of companies and to determine how green innovation practices influence environmental and business performance. A research model with eight hypotheses was proposed to determine the associations between the variables of interest. An empirical survey was conducted of 202 Taiwanese service and manufacturing companies. The survey found that pressure from competitors and the government, along with employee conduct, all had significant and positive effects on green innovation practices. Additionally, a moderating effect of innovation orientation existed only in the relationship between green product innovation practices and employee conduct. This study not only provides a systematic way to analyze the effects of green innovation practices but also suggests the best means for companies to adopt green innovation practices.

Green Innovation Practices and Its Impacts on Environmental and Organizational Performance

Frontiers in Psychology, 2021

This study aims to investigate the impact of stakeholders’ views on the practices of green innovation (GI), consequent effect on environmental and organizational performance (OP), and moderating influence of innovation orientation. A quantitative method was employed for the sample size of 515 responses. To accumulate the data from the respondents, convenient random sampling was used. Data were collected from manufacturing and services firms through a field survey by using a closed-ended questionnaire based in the Punjab province of Pakistan. The analysis was done using the structural equation model of the partial least square analysis method. Our findings proved a positive and significant link between stakeholders’ views on GI practices. A significant association has been found between GI practices and environmental and OP. The moderating effect was found to be negative but statistically significant. This research offers numerous contributions and provides decision-making insinuations.

The Role of Environmental Innovation Strategy in Reinforcing the Impact of Green Managerial Practices on Competitive Advantages of Fertilizer Companies in Egypt

International Journal of Customer Relationship Marketing and Management, 2013

Little literature and research exists on the impact of Green Managerial Practices (GMP’S) on competitive advantages (CA). This study fills this research gap and is conducted on a sample of 450 workers in 10 fertilizer companies in Egypt. The study identifies the moderating role of environmental innovation strategy (EIS) in reinforcing the impact of green managerial practices on competitive advantages. The empirical results show that three types of green managerial practices – green planning, green managerial concerns, and green entrepreneurship – have positive effects on competitive advantages, which increases in the presence of environmental innovation strategy. Companies that invest resources and efforts in green managerial practices can meet the strict environmental regulations in Egypt and popular environmental consciousness of consumers, as well as obtain corporate competitive advantages. Managerial implications and areas for further research are also discussed.

Environmental Issues and Strategic Corporate Social Responsibility for Organizational Competitiveness

Journal of Competitiveness, Vol. 13 (2), 5–22. (ISI Web of Science – Social Sciences Citation Index® & Journal Citation Reports/Social Sciences Edition) (Impact factor 4.725) , 2021

The objective of this study is to examine a multi-dimensional modified conceptual model based on stakeholder theory & previous literature. The work represents an attempt to evaluate the association of environmental issues and practices of an organization's corporate social responsibility and the impact of these two factors on overall competitiveness. We have taken four corporate social responsibility (CSR) factors regarding the environment that affect competitive organizational performance. Additionally, we incorporated green innovation as a mediator and social media marketing apps as a moderator to examine the impact on organizational competitiveness. We collected 906 responses from the manufacturing and services sectors from the regional developing Asian countries China, India, Pakistan, Bangladesh, and the UAE for more generalizable and robust results. We developed a modified questionnaire and conceptual framework to empirically test organizational performance & competitiveness. For the analysis, we employed SEM-based multivariate modeling. The study's findings reveal that all the considered CSR factors of the environment positively and significantly impact organizational performance for competitiveness. The results further show that both green innovation as a mediator and social media marketing apps as moderators significantly impact the relationship of CSR factors of environment and organizational competitiveness. Thus, the modified conceptual model demonstrates that the environmental CSR factors are beneficial for the manufacturing and service sectors of developing economies, which create value for competitive business, society, and environment. The findings provide valuable directions for the senior management in the manufacturing and services sector to devise and implement environmental strategies for competitiveness.

The Effect of Green Process Innovation on Corporate Sustainability and Environmental Performance as a Mediation Variable

Proceedings of the 7th Sriwijaya Economics, Accounting, and Business Conference (SEABC 2021), 2022

This research aims to examine the environmental performance as a mediating variable of the relationship between green process innovation on the corporate sustainability in small and medium enterprise (SME) in South Sumatra. The respondents in this research were the managers and owners of manufacturing small and medium-sized businesses. There were 70 SMEs as research samples. The data analysis used partial least square structural equation technique (PLS3). The results proved the green process innovation directly had a positive and significant effect on environmental performance, the green process innovation does not have effect on corporate sustainability, and the environmental performance has a positive and significant effect on corporate sustainability. The moderating variable in this research is environmental performance. The result showed the green process innovation has positive effect on corporate sustainability and the environmental performance can moderate the relationship between green process innovation and corporate sustainability

Environmental Innovation and Firm Performance: How Firm Size and Motives Matter

Sustainability, 2019

There is limited understanding of the precise circumstances under which environmental actions-such as environmental innovation-contribute to firm performance. Building on the resource-based view and on stakeholder theory, this study argues that the general positive effect of environmental innovation on financial performance varies significantly with firm size and the motives underlying a firm's engagement in environmental innovation. Integrating survey data and lagged annual account data on 1761 Flemish companies, we find that larger firms benefit financially from environmental innovation driven by regulation or industry codes of conduct, while smaller firms benefit from environmental innovation introduced in response to customer demand. While it is increasingly accepted that environmental innovation relates positively with firm performance, the current study highlights important boundary conditions of this relationship.

Eco-innovation and cleaner production as sustainable competitive advantage antecedents: the mediating role of green performance

This main purpose of this study is to examine the relationship between eco-innovation (EI) and cleaner production (CP) variables and sustainable competitive advantage (SCA) with the mediating role of green performance (GP). In this study, data are collected from 196 Iranian SMEs using an email survey. The proposed hypotheses are tested using structural equation modelling (SEM). The results indicate that the EI and CP are related in different ways to the SCA in a firm. A positive relationship is observed between EI and GP and also between CP and GP. The results also show a sequential positive relationship from EI and CP via GP to the SCA of firms. Managers can use the findings to monitor and influence the EI and CP in a firm to increase overall firm green perform GP and finally achieve SCA. Earlier studies have shown a positive relationship between eco-innovation, cleaner production and firm's performance. However, the green performance and business sustainable competitive advantage were neglected.

The Impact of Green Innovation on Organizational Performance, Environmental Management Behavior as a Moderate Variable: An Analytical Study on Nuqul Group in Jordan

International Journal of Business and Management, 2014

This study aims to investigate "The impact of the Green Supply Chain Management" (GSCM) on Environmental-Based Marketing Performance. In order to achieve the objectives of the study, the researchers deployed the descriptive analytical approach due to its relevance to this kind of research. The sample used in this study was the stratified convenience sampling, where the study targeted the top and middle managerial levels from the population, and the targeted managerial levels was made up of (167) employees in the five companies. 125 questionnaires were distributed for the five companies with (25) questionnaires for each company. The accepted questionnaire was (96). The results of the research showed that the elements of the Green Supply Chain Management "Internal Environmental Management, Green Purchasing, Green Information Systems, Cooperation with Customers, Eco-Design and Packaging, and Investment Recovery" practices affected the environmental-based marketing performance. The results showed the element with significant impact on the environmental-based marketing performance was internal environmental management.