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Recent years have witnessed continuous rise in adopting green innovations which is considered as an important organizational instrument to achieve profits by reducing environmental deterioration. However, green innovation in developing countries, especially in Pakistan, is surprisingly scant as compared to developed countries. This paper empirically investigated obstacles to green innovations in Pakistani manufacturing firms. Specifically, a novel three phase methodological framework was applied to investigate significant barriers and filtration by integrating Delphi method (DM), interpretive structural modeling (ISM), and cross-impact matrix multiplication applied to classification (MICMAC). Our results highlighted that lack of enforceable laws regarding returned goods and recycled products, lack of rules and regulations for green practices, and lack of collaboration with government and environmental institutions are most critical barriers. However, fear of failure about green innovation is least important barriers to green innovations adoption. This study offers interesting clues to promote green innovation in manufacturing industry.

Relying on tournament theory and environmental management research, we examine how CEO tournament incentives induce top executives to invest more in green innovation. Using a sample of Chinese listed companies from 2010 to 2016, we find evidence that CEO tournament incentives are positively associated with green innovation. In addition, we find that a positive relationship between CEO tournament incentives and green innovation is stronger in state-owned enterprises than in non-state-owned enterprises. These results support tournament theory, which proposes that better incentives induce top executives’ efforts to win the tournament incentives, and such efforts are subject to fiercer competition among employees, which improves firms’ social and financial performance. Moreover, our findings have implications for policy makers and regulators who wish to enhance environmental legitimacy by providing tournament incentives to top executives.

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This study aims to investigate whether government withdrawal affect corporate social responsibility (CSR) performance, and how CEO’s political connection moderates its relationship. We use sample data from Chinese listed firms over the 2010 to 2015 period to test our hypotheses. We find that decrease in state ownership through government withdrawal tends to negatively affect firms’ CSR performance, but the CEO’s political connection weakens its negative relationship and increases the firm’s likelihood towards CSR activities. Our findings imply that firm’s social engagement mainly result from high governmental involvement, and usually from political connections, because such firms are subject to close scrutiny by stakeholders and thus are more likely to improve social performance. Moreover, this research provides important implications to policy makers regarding the social outcomes of government withdrawal and the usefulness of firms’ political connection in developing economies like China. Este estudio tiene como objetivo investigar si la retirada del gobierno afecta al rendimiento de la responsabilidad social corporativa (RSC), y cómo la conexión política del CEO modera su relación. Utilizamos los datos de una muestra de empresas chinas que cotizan en bolsa durante el período 2010-2015 para comprobar nuestras hipótesis. Encontramos que la disminución de la propiedad estatal a través de la retirada del gobierno tiende a afectar negativamente a los resultados de RSC de las empresas, pero la conexión política del CEO debilita su relación negativa y aumenta la probabilidad de la empresa hacia las actividades de RSC. Nuestras conclusiones implican que el compromiso social de las empresas se debe principalmente a la alta participación gubernamental, y normalmente a las conexiones políticas, porque estas empresas están sometidas a un estrecho escrutinio por parte de las partes interesadas y, por lo tanto, es más probable que mejoren sus resultados sociales. Además, esta investigación ofrece importantes implicaciones para los responsables políticos en relación con los resultados sociales de la retirada del gobierno y la utilidad de la conexión política de las empresas en economías en desarrollo como China.