Corporate environmental commitment and financial performance: Moderating effects of marketing and operations capabilities

Hirunyawipada, Tanawat; Xiong, Guiyang

doi:10.1016/j.jbusres.2018.01.002

Cited by 78 publications

(87 citation statements)

References 62 publications

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“…A high level of ECOM indicates that firms usually have a strong willingness to adopt sustainable practices to balance firm development and environmental protection [1,27]. Prior studies found that ECOM prompted firms to take initiative in participating in the environmental management, and thus integrate it into firms' strategies to improve firm's environmental performance through proactive environmental management [28,29]. Prior studies presented the positive effects of ECOM on business performance, innovation capability, and competitive edges [30][31][32].…”

Section: Environmental Commitmentmentioning

confidence: 99%

“…Firms with a higher level of ECOM are willing to implement the pollution prevention and control, green product design, efficiency improvement, and waste recycling as well as utilization. These proactive behaviors caused by ECOM can reduce firms' impact on environment [28,29,32]. Additionally, ECOM plays a key effect in encouraging employees' productivity through the improved corporate culture and employees' "pride" [1].…”

Section: The Effect Of Ecom On Firm Performancementioning

confidence: 99%

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Environmental Regulation, Environmental Commitment, Sustainability Exploration/Exploitation Innovation, and Firm Sustainable Development

et al. 2019

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The links among firms’ environmental regulation, innovation process, and sustainable development has been analyzed, but a research gap still remains in terms of environmental commitment and different types of sustainable innovation in firms’ sustainability. Through collecting a dataset of 380 valid respondents from Chinese manufacturing firms, this paper incorporates evironmental regulation, environmental commitment, sustainability exploration innovation, sustainability exploitation innovation, environmental performance, and business performance into a multiple mediating effect model. Our key emperical findings are as follows: (1) Environmental regulation not only cannot affect environmental performance and business performance, but also cannot affect the two types of firm performance through sustainability exploration innovation or sustainability exploitation innovation; (2) The relationship between environmental regulation, environmental performance (or business performance) is subsequently mediated by both environmental commitment and sustainability exploitation innovation; (3) Environmental regulation does not affect environmental performance (or business performance) through environmental commitment and sustainability exploration innovation. These results do, however, support the Porter Hypothesis in terms of revealing a new multiple mediating effect path dominated by environmental commitment and sustainability exploitation innovation. Our findings can provide a better understanding of how environmental commitment and sustainability exploitation innovation play a key effect in helping firms relieve the pressure from environmental regulation, and thus improve their environmental management while keeping their competitive edge.

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Section: Environmental Commitmentmentioning

confidence: 99%

Section: The Effect Of Ecom On Firm Performancementioning

confidence: 99%

Environmental Regulation, Environmental Commitment, Sustainability Exploration/Exploitation Innovation, and Firm Sustainable Development

et al. 2019

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“…Several study believe conclude that marketing have moderator effect on firm performance such as Liang & Frosen (2015), Hirunyawipada & Xiong (2018), also Sun, Price, & Ding (2018). Hanssen, Wang, & Zhang (2016), Bae, Kim, & Oh, and Kim, Bae, & Oh (2019) stated that there is moderating effect of marketing in the relation between leverage and firm value.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

Testing marketing expenses role on the relation between leverage and performance

Setyawati

Ramadhanti

2019

Jurnal Keuangan Dan Perbankan

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Marketing expenses usually one of the most important cost for the companies, but still few research in finance discussing about this. Previous study still inconsistent about the role of marketing expenses as moderator or mediator between the effects of leverage on financial performance. This research intended to empirically test on that subject. This research is using 1792 panel financial report data taken from 256 companies listed in Indonesian Stock Exchange during 2010-2016. There are three main variables in this research: performance that measures using returns on assets (ROA), marketing expenses is measures using natural logarithm of marketing expenses. Leverage is calculated using total debt per total asset. Data is analyzed using panel data regression. The results shows that marketing expense is a moderator but not mediator variable in the effect of leverage on financial performance. Marketing expense moderates negatively the relation between financial leverage on ROA. This is consistent with strategic management using Resources Advantage Theory and Du Pont Business Model. AbstrakBeban pemasaran biasanya adalah biaya yang paling penting bagi perusahaan, namun masih sedikit riset di bidang keuangan yang membahas tentang hal ini. Beberapa penelitian empiris sebelumnya memang telah menguji beban pemasaran dan kaitannya dengan leverage serta kinerja keuangan perusahaan, namun demikian belum konsisten hasilnya sebagai variabel pemoderasi atau pemediasi. Penelitian ini bermaksud mengkonfirmasi peranan beban pemasaran tersebut. Sampel yang digunakan dalam studi ini adalah 1792 data panel dari Laporan Keuangan 256 perusahaan yang terdaftar di Bursa Efek Indonesia selama periode 2010-2016. Ada tiga variabel utama dalam penelitian ini, yaitu kinerja diukur dengan tingkat pengembalian aset (return on assets atau ROA), beban pemasaran diukur dengan logaritma natural dari beban pemasaran, serta leverage keuangan yang diukur dengan total utang dibagi dengan total aset. Sampel selanjutnya dianalisis dengan regresi data panel. Hasilnya menunjukkan bahwa beban pemasaran merupakan variabel pemoderasi, bukan pemediasi, dalam hubungan leverage dengan kinerja keuangan. Beban pemasaran memoderasi negatif pengaruh leverage keuangan terhadap ROA. Hasil ini konsisten dengan manajemen strategi menggunakan Resources Advantage Theory dan Du Pont Business Model. How to Cite: Setyawati, S. M., & Ramadhanti, W. (2019). Testing marketing expenses role on the relation between leverage and performance. Jurnal Keuangan dan Perbankan, 23(3), 469-478. https://doi.| 470 | 1.

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“…The dynamic panel data methods of Arellano and Bond (1991), Arellano and Bover (1995), and Blundell and Bond (1998) provide a practical approach that can tackle issues (i) and (ii) by first differencing and utilizing the lagged levels and lagged differences as instruments. Because of their practicality, dynamic panel data methods have been used extensively in the marketing and economics literature to examine phenomena of dynamic nature, including the N-A framework (Paton, 2002;Neumayer, 2004;Clark et al, 2009;Xiong and Bharadwaj, 2013;Terris-Prestholt and Windmeijer, 2016;Chung, 2017;Ye et al, 2017;Hirunyawipada and Xiong, 2018). However, these methods are only valid under the assumption of no serial correlation in the idiosyncratic errors, which violates (iii).…”

Section: The Nerlove-arrow Frameworkmentioning

confidence: 99%

How Do Sales Efforts Pay Off? Dynamic Panel Data Analysis in the Nerlove–Arrow Framework

2019

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This paper evaluates the short-and long-term value of sales representatives' detailing visits to different types of physicians. By understanding the dynamic effect of sales calls across heterogeneous physicians, we provide guidance on the design of optimal call patterns for route sales. The findings reveal that the long-term persistence effect of detailing is more pronounced for specialist physicians, whereas the contemporaneous marginal effect is higher for generalists. The paper also provides a key methodological insight to the marketing and economics literature. In the Nerlove-Arrow framework, moment conditions that are typically used in conventional dynamic panel data methods become vulnerable to serial correlation in the error structure. We discuss the associated biases and present a robust set of moment conditions for both lagged dependent and predetermined explanatory variables. Furthermore, we show that conventional tests to detect serial correlation have weak power, resulting in the misuse of moment conditions that leads to incorrect inference. Theoretical illustrations and Monte Carlo simulations are provided for validation.

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Corporate environmental commitment and financial performance: Moderating effects of marketing and operations capabilities

Cited by 78 publications

References 62 publications

Environmental Regulation, Environmental Commitment, Sustainability Exploration/Exploitation Innovation, and Firm Sustainable Development

Environmental Regulation, Environmental Commitment, Sustainability Exploration/Exploitation Innovation, and Firm Sustainable Development

Testing marketing expenses role on the relation between leverage and performance

How Do Sales Efforts Pay Off? Dynamic Panel Data Analysis in the Nerlove–Arrow Framework

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