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Assessing the impacts of government environmental policies on the small and medium-sized firm's performances in Korea and China

Hye-Young Joo (Chung-Ang University, Seoul, Republic of Korea)
Hokey Min (Department of Management, Bowling Green State University, Bowling Green, Ohio, USA)

Benchmarking: An International Journal

ISSN: 1463-5771

Article publication date: 14 June 2022

Issue publication date: 24 August 2023

551

Abstract

Purpose

This paper aims to examine which role governments can play in facilitating the small and medium-sized enterprises (SMEs)' environmental capabilities in a global marketplace. It also investigates whether the extent of the impact of government intervention on firm performance varies depending on country-specific policies.

Design/methodology/approach

The authors develop a series of hypotheses that are predicated on the ecological modernization theory and the institutional theory. To test those hypotheses, the authors collected cross-national data reflecting both Korean and Chinese SME practices and then used the structural equation model. In addition, the authors utilized cross-validation techniques for methodological rigor.

Findings

A series of hypotheses test results revealed that government intervention had a positive impact on the MNF's environmental innovation capabilities and technological innovation capabilities. In addition, the authors discovered that SMEs' reaction to government intervention had a mediating effect between government intervention and the SME's performance. This discovery verifies the ecological modernization and institutional theories.

Originality/value

This is one of the few studies that conducted cross-cultural analyses of two different nations with contrasting government structures (i.e. capitalistic versus socialistic).

Keywords

Citation

Joo, H.-Y. and Min, H. (2023), "Assessing the impacts of government environmental policies on the small and medium-sized firm's performances in Korea and China", Benchmarking: An International Journal, Vol. 30 No. 7, pp. 2275-2302. https://doi.org/10.1108/BIJ-12-2021-0754

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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