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Exploring institutional pressure, the top management team's response, green innovation adoption, and firm performance: evidence from Taiwan's electrical and electronics industry

Yi-Chun Huang (Department of Business Administration, National Kaohsiung University of Science and Technology, Kaohsiung, Taiwan)
Chih-Hsuan Huang (Research Center of Hubei Logistics Development, Hubei University of Economics, Wuhan, China) (Hubei Enterprise Culture Research Center, Hubei University of Economics, Wuhan, China)

European Journal of Innovation Management

ISSN: 1460-1060

Article publication date: 9 September 2022

Issue publication date: 26 March 2024

733

Abstract

Purpose

Prior research on green innovation has shown that institutional pressure stimulates enterprises to adopt green innovation. However, an institutional perspective does not explain why firms that face the same amount of institutional pressure execute different environmental practices and innovations. To address this research gap, the authors linked institutional theory with upper echelons theory and organization performance to build a comprehensive research model.

Design/methodology/approach

A total of 800 questionnaires were issued. The final usable questionnaires were 195, yielding a response rate of 24.38%. AMOS 23.0 was used to analyze the data and examine the relationships between the constructs in our model.

Findings

Institutional pressures affected both green innovation adoption (GIA) and the top management team's (TMT's) response. TMT's response influenced GIA. GIA was an important factor affecting firm performance. Furthermore, TMT's response mediated the relationship between institutional pressure and GIA. Institutional pressures indirectly affected green innovation performance but did not influence economic performance through GIA. Finally, TMT's response indirectly impacted firm performance through GIA.

Originality/value

The authors draw on institutional theory, upper echelons theory, and a performance-oriented perspective to explore the antecedents and consequences of GIA. This study has interesting implications for leaders and managers looking to implement green innovation and leverage it for firm performance to out compete with market rivals as well as to make the changes in collaboration with many other companies including market rivals to gain success in green innovation.

Keywords

Acknowledgements

This research was supported by the Ministry of Science and Technology, Taiwan (MOST-108-2410-H-992-051).

Citation

Huang, Y.-C. and Huang, C.-H. (2024), "Exploring institutional pressure, the top management team's response, green innovation adoption, and firm performance: evidence from Taiwan's electrical and electronics industry", European Journal of Innovation Management, Vol. 27 No. 3, pp. 800-824. https://doi.org/10.1108/EJIM-03-2022-0126

Publisher

:

Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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