The mediating role of environmental innovation in the relationship between environmental management and firm performance in a multi-stakeholder environment (original) (raw)
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Green and competitive? An empirical test of the mediating role of environmental innovation strategy
Journal of World Business, 2008
This study examines links between the adoption of an environmental innovation strategy and firms’ business performance. It illustrates ways in which an environmental innovation strategy is itself influenced by significant environmental pressures, including government environmental regulation, perceived importance of stakeholder pressures, and managerial environmental concerns. Survey data from the chemical industry in Jordan show that (1) environmental innovation strategy is associated with improved perceived firms’ business performance; (2) the adoption of an environmental innovation strategy is influenced by certain environmental pressure forces, and (3) environmental innovation strategy fully mediates between certain environmental pressure forces and firms’ business performance.
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SSRN Electronic Journal, 2006
Technological innovation is a key factor for achieving a better environmental performance of firms and the economy as a whole, to the extent that it helps to increase the material/energy efficiency of production processes and to reduce emission/effluents associated to outputs. Environmental innovation may spur from exogenous driving forces, like policy intervention, and/or from endogenous factors associated to firm market and management strategies. Despite the crucial importance of research in this field, empirical evidence at firm microeconomic level, for various reasons, is still scarce. Microeconomic-based analysis is needed in order to assess what forces are lying behind environmental innovation at the level of the firm, where innovative practices emerge and are adopted. The paper exploits information deriving from two surveys conducted on a sample of manufacturing firms in Emilia Romagna region-Northern Italy-in 2002 and 2004, located in a district-intense local production system. New evidence is provided by testing a set of hypotheses, concerning the influence of: (i) firm structural variables; (ii) environmental R&D; (iii) environmental policy pressure and regulatory costs; (iv) past firm performances; (v) networking activities, (vi) other nonenvironmental techno-organizational innovations and (vii) quality/nature of industrial relations. We estimate input and output-based environmental innovation reduced form specifications in order to test the set of hypotheses. The applied investigation shows that environmental innovation drivers, both at input and output level, are found within exogenous factors and endogenous elements concerning the firm and its activities/strategies within and outside its natural boundaries. In the present case study, the usual structural characteristics of the firm and performances appear to matter less than R&D, induced costs, networking, organisational flatness and innovative oriented industrial relations. Environmental Policies and environmental voluntary auditing schemes exert some relevant direct and indirect effects on innovation, although evidence is mixed and further research is particularly needed. Although this new empirical evidence is focussing on a specific industrial territory, we provide food for discussion on firm environmental innovation strategies, and research suggestions for further empirical work.
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
Economics of Innovation and New Technology, 2014
We examine empirically whether environmental management practices (environmental audits, ISO 14001 standard, etc.) promote (or not) further innovation in the environmental domain. Using a large sample of French firms (N=4114) and three-stage least square (3SLS) model, we find that environmental management practices influence positively the decision of firms to introduce innovations delivering environmental benefits along both the production and consumption cycles. Nevertheless, this positive relation is moderated by market characteristics. The findings indicate that environmental management practices promote (respectively, promote less) further environmental innovations when the market of their main activity is growing (respectively, uncertain or competitive).
Stimulating environmental management performance
British Food Journal, 2010
Purpose-This article aims to provide an analysis of the joint impact of the business network and the company's internal resources on the level of environmental management (EM) deployment. Design/methodology/approach-Correlation, regression and cluster analyses of data gathered in 2005 in the Dutch food and drink (F&D) industry were carried out. Findings-The deployment of managerial capabilities that support ecological modernization (such as supply chain cooperation and network information exchange, or product-redesign) in the Dutch F&D industry is low. The results show that different company profiles are connected with specific drivers and barriers for environmental pro-activeness. Prospector companies (a minority) are more pro-active with respect to environmental capability building than defenders. Research limitations/implications-Comparative longitudinal studies of environmental management drivers in subsectors could improve the understanding of the factors that stimulate environmental performance. Practical implications-Optimism that industry will enhance EM-performance through radical market-induced innovation is misplaced. Instead, a contingency approach is in place. Public environmental policy with respect to the F&D industry should be adjusted to discernable managerial patterns and categories of companies. Voluntary cooperation, self-governance, and market-induced environmental innovation are only effective with respect to a minority of the companies. Originality/value-The research opposes the existing foundation of public environmental policy on generic attributes assigned to the whole F&D-industry and, consequently, of generic policies to improve environmental management performance. A differentiation of public policy should be based on the understanding of the drivers of managerial behavior.
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.
Business Strategy and the Environment, 2019
Environmental product innovation (EPI) is an imperative for contemporary business as it enhances firm competitiveness and provides significant societal benefits. Arguments that the use of environmental management systems (EMS)—such as ISO 14001—may enhance EPI have not been empirically supported. In this study, we argue that the EMS-EPI relationship is contingent upon the level of a firm’s engagement with various types of stakeholders, namely suppliers, customers, and the local community. Using a sample of 1,303 manufacturing firms for the period 2003-2014 we find empirical evidence that supports our hypothesis for all three types of stakeholders. Further analysis reveals that for firms with prior experience with quality management systems, engagement with local communities is the most beneficial. We discuss the implications of these results for both theory and practice
Advanced environmental management and innovation: A theoretical framework
Handbook of Sustainability Management , 2012
Environmental impact, a consequence of ever-increasing industrial activities around the globe, is a growing problem in the world. Firms actively engaging in green innovation can not only minimize production waste but also increase their corporate reputation and legitimacy while satisfying stakeholders’ demands. In this chapter, we provide a theoretical review of the impact that environmental innovation has on firms’ ability to sustain a competitive advantage. We summarize the environmental management literature’s most important findings relating to firms’ innovation capabilities over the last several decades. In addition, we consider the strategic potential of environmental innovation, explaining how it constitutes a potential source of competitive advantage. Next, we point out a set of important determinants of environmental innovation, focusing on environmental regulations and then analyzing several firm-specific features that may also determine the effectiveness of environmental innovations (a firm’s strategic orientation, competencies and network relations). Finally, we summarize our conclusions, propose future lines of research and provide managers and policy-makers with evidence of the increasing importance of firms’ environmental innovation capabilities for protecting the natural environment.
Environmental Innovation and Firm Performance: How Firm Size and Motives Matter
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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.
Electronic Journal of Education, Social Economics and Technology
The purpose of this study is to investigate the impact of environmental innovation which is product innovation (PDI) and process innovation (PCI) on firm’s financial performance (FFP). And also, to investigate mediating role of the environment management accounting (EMA) against innovation and FFP. Data were collected from 98 respondents, worked in management positions in Indonesia’s manufacturing sectors. The study uses PLS-SEM (partial least square based structural equation modeling) software for the data analysis. The results showed that PDI has positive and significant impacts on FFP. But PCI has not significant impacts on FFP. Furthermore, PDI and PCI have significant impacts on EMA. This study also indicated that EMA mediate the relationship between innovation and FFP in the manufacturing sector of Indonesia. This study suggests the managers of the manufacturing companies or similar sectors to introduce innovations in their products and processes for developing a better EMA sy...