Can public surveillance promote corporate environmental innovation? The mediating role of environmental law enforcement

Abstract

With the increase in public environmental awareness, firms are continuously being required to fulfill environmental responsibilities. Based on stakeholder theory and institutional theory, this study examines the impact of public surveillance on corporate environmental innovation and the mediating role of environmental law enforcement. We selected 30 provinces in China as the research sample from 2011 to 2015. Multiple regression analysis was used to analyze the data by Stata software. We found that public surveillance had a significant positive promoting effect on corporate radical eco-innovation, but had no significant effect on incremental eco-innovation; environmental law enforcement had a significant positive promoting effect on both radical and incremental eco-innovations. In addition, public surveillance was conducive to enhancing environmental law enforcement, which in turn promoted corporate radical eco-innovation.

Shaping sustainable development: External environmental pressure, exploratory green learning, and radical green innovation

“…Thus, exploring the factors that promote radical green innovation is an important topic to achieve carbon neutrality and really sustainable development. Existing research on radical green innovation has identified several antecedents from resource or legitimacy perspective, such as competitive pressure (Dai et al, 2015), social ties (Liao et al, 2021), public surveillance (Liao et al, 2020), green shared vision (Chen et al, 2014), responsible leadership (Liao & Zhang, 2020), green supplier integration (Zhao et al, 2021), resources, competences, and dynamic capabilities (Kiefer et al, 2019). However, policy and market jointly constitute the objective institutional environment of firms, which has a decisive impact on firms' environmental behavior (Li et al, 2018; Liao et al, 2020).…”

“…Existing research on radical green innovation has identified several antecedents from resource or legitimacy perspective, such as competitive pressure (Dai et al, 2015), social ties (Liao et al, 2021), public surveillance (Liao et al, 2020), green shared vision (Chen et al, 2014), responsible leadership (Liao & Zhang, 2020), green supplier integration (Zhao et al, 2021), resources, competences, and dynamic capabilities (Kiefer et al, 2019). However, policy and market jointly constitute the objective institutional environment of firms, which has a decisive impact on firms' environmental behavior (Li et al, 2018; Liao et al, 2020). In other words, external environmental pressure, such as environmental regulatory and green market, may be the crucial factors for firms to take measures to achieve radical green innovation.…”

How environmental reputation and ethical behavior impact the relationship between environmental regulatory enforcement and environmental performance

“…By adhering to environmental regulations, firms stand a better chance at maintaining relationships with key stakeholders; particularly, at simultaneously enhancing their legal status while appeasing to government offices through thorough investment in environmental innovation activities (Hernández et al, 2021; Liao et al, 2020) to enhance their legality and appease governments, they must investment in environmental innovation activities. In addition, several studies have noted that institutions have a significant influence on firm practices in relation to environmental innovation, sustainability, and social responsibility (Habib & Bhuiyan, 2017; Roxas & Coetzer, 2012).…”

“…In addition, several studies have noted that institutions have a significant influence on firm practices in relation to environmental innovation, sustainability, and social responsibility (Habib & Bhuiyan, 2017; Roxas & Coetzer, 2012). For example, previous studies have explored the role of regulatory enforcement mechanisms on firm environmental behaviors (Adomako et al, 2016; Liao et al, 2020; Moffat & Auer, 2006). However, these studies only explored the direct impact of regulations on environmental management practices of firms.…”

“…For example, previous studies have explored the role of regulatory enforcement mechanisms on firm environmental behaviors (Adomako et al, 2016;Liao et al, 2020;Moffat & Auer, 2006). However, these studies only explored the direct impact of regulations on environmental management practices of firms.…”