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Article
Publication date: 21 March 2024

Muhammad Hafeez, Ida Yasin, Dahlia Zawawi, Shoirahon Odilova and Hussein Ahmad Bataineh

This study aims to investigate the effect of organizational ambidexterity (OA) and organizational green culture (OGC) on corporate sustainability (CS) while incorporating the…

Abstract

Purpose

This study aims to investigate the effect of organizational ambidexterity (OA) and organizational green culture (OGC) on corporate sustainability (CS) while incorporating the mediating role of green innovation (GI) to provide a detailed insight into CS. The study also presents a research framework based on the Organizational Ambidexterity theory and Natural Resource-based view to explain the factors contributing to CS.

Design/methodology/approach

Using stratified sampling, the study collected data through survey-based empirical research from 307 textile companies registered with the Securities and Exchange Commission of Pakistan (SECP) or the All-Pakistan Textile Mills Association (APTMA). The collected data were analysed using path analysis, mediation analysis and moderation analysis through smart PLS-SEM version 4.0 to assess the composition and causal association of factors.

Findings

The study found a significant relationship between OA and OGC with CS. Furthermore, the study revealed that green innovation partially mediates the relationship between OGC and CS. The proposed research framework can be valuable for promoting and recommending actions to enhance CS.

Research limitations/implications

The study on CS in the textile sector of Pakistan has limitations such as a narrow focus, cross-sectional design and reliance on self-reported data. Future research should explore additional factors, conduct longitudinal research, investigate contextual factors, scrutinize specific green innovation practices and broaden the scope of the study to include SMEs and other textile organizations.

Practical implications

The research framework can help senior executives to foster CS by promoting OGC, OA and GI. Practitioners and academicians can also utilize or further investigate the proposed framework for validation and to foster CS.

Originality/value

This study fills gaps in the existing literature by investigating the mediating effect of GI between OGC and CS. The proposed research framework provides a comprehensive understanding of the factors contributing to CS based on the Organizational Ambidexterity theory and Natural Resource-based view.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 26 February 2024

Hashim Zameer, Humaira Yasmeen, Ying Wang and Muhammad Rashid Saeed

Understanding the role of corporate strategies in sustainability has become a hot topic for scholarly research. Meanwhile, firms strive to innovate and shape their positive image…

Abstract

Purpose

Understanding the role of corporate strategies in sustainability has become a hot topic for scholarly research. Meanwhile, firms strive to innovate and shape their positive image in the contemporary business arena. Past research has ignored investigating whether and how sustainability-oriented corporate strategies could drive innovation and firm image among external stakeholders. To address the said research gap, this paper examines the path through which sustainability-oriented corporate strategy and environmental regulation improve green corporate image and green innovation capabilities (i.e. green process and product innovation).

Design/methodology/approach

This study adopted a quantitative survey-based method. The online survey was adopted to collect data from employees working at the managerial level in the equipment manufacturing sector. The data collected from 343 managers that was complete in all aspects was used for empirical analysis using structural equation modeling. Direct and indirect relations were evaluated.

Findings

The findings reveal that sustainability-oriented corporate strategy and environmental regulation drive green innovation and green corporate image. Findings further show that external knowledge adoption underpins these effects of sustainability-oriented corporate strategy and environmental regulation.

Originality/value

The study delivers theoretical and practical understandings of the importance of sustainability-oriented corporate strategies to green corporate image and green innovation capabilities.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 29 February 2024

Jingxin Lv and Shiquan Wang

This study aims to focus on the resource-based faultline of a top management team (TMT) and intends to investigate the impact of TMT resource-based faultline on corporate green

Abstract

Purpose

This study aims to focus on the resource-based faultline of a top management team (TMT) and intends to investigate the impact of TMT resource-based faultline on corporate green innovation, by indicating the environmental management as a mediator and slack resources as a moderator to understand the relationship.

Design/methodology/approach

Based on the empirical data of Chinese listed manufacturing companies from 2008 to 2020, this study assesses the hypotheses using an OLS model with fixed effects of time and industry.

Findings

The results indicate that TMT resource-based faultline is significantly negatively correlated with corporate green innovation. The conclusion remains valid after endogeneity tests and robustness checks. Mechanism test shows that environmental management plays a mediating role in the association between TMT resource-based faultline and corporate green innovation. Moreover, slack resources diminish the negative association between TMT resource-based faultline and corporate green innovation.

Originality/value

The study not only expands the theoretical understanding of the deeper motivation of TMT faultline on corporate green innovation, but also provides a practical reference for optimizing the human resource allocation of the TMT and accelerating green transformation development.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 8 January 2024

Marcellin Makpotche, Kais Bouslah and Bouchra M’Zali

This study aims to exploit Tobin’s Q model of investment to examine the relationship between corporate governance and green innovation.

Abstract

Purpose

This study aims to exploit Tobin’s Q model of investment to examine the relationship between corporate governance and green innovation.

Design/methodology/approach

The study is based on a sample of 3,896 firms from 2002 to 2021, covering 45 countries worldwide. The authors adopt Tobin’s Q model to conceptualize the relationship between corporate governance and investment in green research and development (R&D). The authors argue that agency costs and financial market frictions affect corporate investment and are fundamental factors in R&D activities. By limiting agency conflicts, effective governance favors efficiency, facilitates access to external financing and encourages green innovation. The authors analyzed the causal effect by using the system-generalized method of moments (system-GMM).

Findings

The results reveal that the better the corporate governance, the more the firm invests in green R&D. A 1%-point increase in the corporate governance ratings leads to an increase in green R&D expenses to the total asset ratio of about 0.77 percentage points. In addition, an increase in the score of each dimension (strategy, management and shareholder) of corporate governance results in an increase in the probability of green product innovation. Finally, green innovation is positively related to firm environmental performance, including emission reduction and resource use efficiency.

Practical implications

The findings provide implications to support managers and policymakers on how to improve sustainability through corporate governance. Governance mechanisms will help resolve agency problems and, in turn, encourage green innovation.

Social implications

Understanding the impact of corporate governance on green innovation may help firms combat climate change, a crucial societal concern. The present study helps achieve one of the precious UN’s sustainable development goals: Goal 13 on climate action.

Originality/value

This study goes beyond previous research by adopting Tobin’s Q model to examine the relationship between corporate governance and green R&D investment. Overall, the results suggest that effective corporate governance is necessary for environmental efficiency.

Details

Review of Accounting and Finance, vol. 23 no. 2
Type: Research Article
ISSN: 1475-7702

Keywords

Article
Publication date: 22 December 2023

Xiuying Chen, Jiahong Zhu and Sheng Liu

The reform and opening-up of capital market is valued for promoting sustainable development, while its impact presented as the form of deregulation of short-selling on the green

Abstract

Purpose

The reform and opening-up of capital market is valued for promoting sustainable development, while its impact presented as the form of deregulation of short-selling on the green innovation of enterprises in developing countries remains unclear. The purpose of this study is to outline the significance of gradual reform of financial markets in developing countries for low-carbon transformation and provide implications for achieving carbon peaking and carbon neutrality goals.

Design/methodology/approach

Based on the green subdivided patent data and financial data of China’s A-share listed companies, this paper takes the implementation of securities margin trading program as a quasi-natural experiment and applies the difference-in-differences (DID) model to examine the impact of deregulation of short-selling constraints on the enterprises’ green transformation.

Findings

The findings reveal that the initiating securities margin trading program significantly enhances the green innovation performance of enterprises. These findings are valid after performing a series of robustness tests such as the parallel trend test, the placebo test and the methods to exclude other policy interference. Mechanism analyses demonstrate a two-faceted effect of the securities margin trading program on the green innovation of enterprises, in which short-selling policy increases the pressure on capital market deregulation and meanwhile induces the environmental protection investment. The heterogeneity results demonstrate that the impulsive effect imposed by securities margin trading program is more significant in experimental group samples with characteristics of lower financing constraints, belonging to heavy polluting industries and possessing better environmental supervision capability.

Originality/value

First, previous studies have focused on the impact of financial policies implemented by banking institutions on the green innovation of enterprises, but few literatures have explored the validity of relaxing short-selling restrictions or opening the capital market in the field of enterprise’s green transformation in developing country. From the view of securities market reform, this paper broadens the incentive and supervision effects of the relaxation of short-selling control on enterprise’s green innovation performance after the implementation of securities financing and securities lending policy in China’s capital market. Second, previous studies have explored the impact of command-and-control environmental regulations, as well as market-incentivized environmental regulations such as green finance, low-carbon pilots and environmental tax reform, on the green transition of enterprises. Recently the role of the securities market in the green development of enterprises has received more attention in academia. The pilot of margin financing and securities lending is essentially a market-incentivized regulatory tool, but there is few in-depth research on how it affects the green innovation of enterprises. This paper enriches the research on whether the market incentive financial regulation policy can contribute to the green transformation of enterprises under the Porter hypothesis. Third, some previous studies used the ordinary panel regression model to explore the impact of financial policy on enterprise’s innovation performance. However, due to the potential endogenous problems of the estimated model, it might get biased conclusions. Therefore, based on the method of quasi-natural experiment, this paper selects the margin trading pilot policy as an exogenous shock to solve the endogenous or reverse causality problem in traditional measurement model and applies the DID model to study the relationship between core indicator variables.

Details

Nankai Business Review International, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 8 February 2022

Yaw Agyabeng-Mensah, Ebenezer Afum and Charles Baah

The growing relevance of environmental sustainability calls for identification of factors that contribute to green innovation and build green corporate reputation. Drawing on the…

1266

Abstract

Purpose

The growing relevance of environmental sustainability calls for identification of factors that contribute to green innovation and build green corporate reputation. Drawing on the resource-based view theory, this study aims to explore the influence of green logistics knowledge, green customer knowledge, green supplier knowledge, green competitor knowledge, non-supply chain learning on green innovation and green corporate reputation.

Design/methodology/approach

This study adopts the quantitative research method where questionnaire is used to gather data from managers of the sampled 208 small and medium enterprises (SMEs). The structural equation modelling is used to analyse the survey data and test the proposed hypotheses.

Findings

The findings reveal that non-supply chain learning, green customer knowledge and green competitor knowledge have both direct and indirect impact on green innovation and green corporate reputation. However, green supplier knowledge and green logistics knowledge directly impact green innovation but indirectly impact green corporate reputation through green innovation.

Originality/value

Despite the growing literature exploring the relationship between learning, innovation and reputation, their literature in emerging economies remains underdeveloped. This study provides empirical evidence to confirm the role of non-supply chain learning and green supply chain knowledge in building green corporate reputation and developing green innovation of SMEs in an emerging economy.

Details

International Journal of Emerging Markets, vol. 18 no. 11
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 22 June 2022

Yaw Agyabeng-Mensah, Ebenezer Afum, Innocent Senyo Kwasi Acquah and Charles Baah

Understanding the factors that advance green innovation is crucial for firms to deal with the complexity of green innovation. In light of this, this study aims to explore the…

1151

Abstract

Purpose

Understanding the factors that advance green innovation is crucial for firms to deal with the complexity of green innovation. In light of this, this study aims to explore the influence of supply chain knowledge, non-supply chain learning and corporate reputation on green innovation.

Design/methodology/approach

This study uses a quantitative research approach where data is gathered from managers of 208 small and medium enterprises in Ghana using survey questionnaires. The structural equation modeling is used to analyze the survey data.

Findings

The findings reveal supply chain knowledge relates positively with non-supply chain learning, corporate reputation and green innovation. Corporate reputation also impacts green innovation positively and provides partial mediation effect between supply chain knowledge and green innovation. Meanwhile, non-supply chain learning does not relate positively with green innovation as well as fails to mediate the impact of supply chain knowledge on green innovation.

Originality/value

This study contributes to knowledge in the mediating mechanisms of corporate reputation and non-supply chain learning between supply chain knowledge and green innovation. Through this, the authors propose a theoretical model to explain how firms can leverage supply chain knowledge, corporate reputation and non-supply chain learning to improve green innovation and can serve as the basis for further theoretical and empirical research in innovation and external sources of knowledge.

Article
Publication date: 27 March 2024

Jianhui Jian, Haiyan Tian, Dan Hu and Zimeng Tang

With the growing concern of various sectors of society regarding environmental issues and the promotion of sustainable development, green technology innovation is generally…

Abstract

Purpose

With the growing concern of various sectors of society regarding environmental issues and the promotion of sustainable development, green technology innovation is generally considered to be conducive to the long-term development of enterprises. However, because of the existence of agency problems, managers may have shortsighted behaviors. Then how will managers' shortsighted behaviors affect enterprises' green technology innovation?

Design/methodology/approach

This paper uses machine learning-based text analysis methods to construct a manager myopia index based on the data from A-share listed companies on the Shanghai and Shenzhen Stock Exchanges from 2015 to 2020. We examine the impact of manager myopia on green technology innovation in companies.

Findings

Our study finds that manager myopia significantly inhibits green technology innovation in companies. However, when multiple large shareholders coexist and the proportion of institutional investors' holdings is high, it can alleviate the inhibitory effect of manager myopia on green innovation. Heterogeneity tests show that the impact of manager myopia on green technology innovation is relatively significant in non-state-owned and manufacturing companies, as well as in the electricity industry. Robustness tests demonstrate that our conclusions remain valid after using propensity score matching to eliminate endogeneity problems.

Originality/value

From the perspective of corporate governance, this paper incorporates managers' shortsightedness, multiple large shareholders and institutional investors' shareholding ratios into the same logical framework, analyzes their internal mechanisms, helps improve corporate governance, enhances green innovation capabilities and has strong implications for the implementation of national innovation-driven development strategies and the achievement of “carbon peak” and “carbon neutrality” targets.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 14 April 2023

Ya-ru Yang, Jianqiong Wang and Wentao Lou

The purpose of this paper is to analyze the interaction between internal factors of corporate governance, especially the relationship between equity checks and balances and…

Abstract

Purpose

The purpose of this paper is to analyze the interaction between internal factors of corporate governance, especially the relationship between equity checks and balances and corporate social responsibility (CSR), and further analyze the mediating of green innovation performance and the moderating role of environmental uncertainty.

Design/methodology/approach

This study adopts a sample of Chinese A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2012 to 2020 constructed a regulated mediation effect model, empirically tests the impact of equity checks and balances on CSR and the mediation and mediator roles of green innovation performance and environmental uncertainty.

Findings

(1) Equity checks and balances among shareholders have a significant positive impact on CSR. (2) Equity checks and balances have a positive impact on green innovation performance, green innovation performance has a positive impact on CSR and green innovation performance plays a partial mediation effect between equity checks and balances and CSR. (3) Additionally, environmental uncertainty not only moderates the relationship between Green Innovation Performance and CSR but also moderates the direct effect between equity balance and CSR, which verifies the existence of a moderated mediation effect.

Research limitations/implications

The study only considers listed companies on the Shanghai and Shenzhen stock markets as the research sample and does not include unlisted and gem enterprises.

Practical implications

The present research can offer some managerial implications about implementing equity checks and balances among shareholders, actively fulfilling CSR and developing new products.

Social implications

This study complements previous studies on the role of green innovation in corporate governance by exploring the impact of green innovation on equity checks and balances and CSR. And this study explores the dynamic moderating of environmental uncertainty within enterprises and provides another explanation for the mixed results of equity checks and balances, green innovation performance and CSR.

Originality/value

By demonstrating the influence of the ownership structure of A-shares listed companies on CSR, this paper provides a new and comprehensive theoretical framework to examine the interaction between equity checks and balances, green innovation performance, environmental uncertainty and CSR. The results can be used as a reference for corporate governance, improving innovation performance and fulfilling CSR.

Details

Cross Cultural & Strategic Management, vol. 30 no. 3
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 20 August 2020

Mohsin Shahzad, Ying Qu, Abaid Ullah Zafar, Saif Ur Rehman and Tahir Islam

Enhancing green innovation for corporate sustainability is one of the recent issues globally. Knowledge management has been determined as a core factor that hamstrings green

6392

Abstract

Purpose

Enhancing green innovation for corporate sustainability is one of the recent issues globally. Knowledge management has been determined as a core factor that hamstrings green innovation. The existing literature was limited to expose the importance of the knowledge management process for corporate sustainable performance. Thus, this paper aims to examine the role of the knowledge management process for corporate sustainable performance with the integration of green innovation and organizational agility following the resource-based view theory.

Design/methodology/approach

Cross-sectional design was used in this study. Data were gathered through convenience sampling from 475 respondents of multinational manufacturing corporations of Pakistan, analyzed by using structural equation modeling.

Findings

This study revealed that the knowledge management process and its all constructs (acquisition, dissemination and application) lead toward green innovation; further, green innovation influences corporate sustainable performance and its all constructs (environment, economic and social). Green innovation partially mediates the association between the knowledge management process and corporate sustainable performance. Besides, organizational agility has a positive effect on green innovation and corporate sustainable performance but was not found moderating these relations. The study educates that organizations investing in innovative technologies and adopting greener strategies are not only adequate for achieving sustainable performance, soft issues such as knowledge management and organizational agility but also important factors in the current knowledge base economy.

Originality/value

This study is an attempt to examine the previously undiscovered multi-dimensional relationships among the knowledge management process, green innovation, organizational agility and corporate sustainable performance. The presence of a positive correlation among these constructs was observed, proving the conceptual framework for this study.

Details

Journal of Knowledge Management, vol. 24 no. 9
Type: Research Article
ISSN: 1367-3270

Keywords

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