Effects of strategic flexibility and organizational slack on the relationship between green operational practices adoption and firm performance

Abstract

This study aims to explain why some firms improve their performance through the adoption of green operational practices (GOPs) while others do not. Researchers attribute this phenomenon to that some resources are necessary to capture the benefits of GOPs. Drawing upon relevant literature and the resource‐based view, this study identifies strategic flexibility and organizational slack as two potential resources that enable firms to improve their performance through GOPs adoption. In other words, this study examines the moderating effects of strategic flexibility and organizational slack on the relationship between GOPs adoption and firm performance (including environmental and financial performance). Based on the data from 213 Chinese manufacturing firms, hierarchical regression analysis is used to test the hypotheses. The results show that GOPs adoption positively influences environmental and financial performance. Moreover, we find that strategic flexibility strengthens the relationship between GOPs adoption and environmental performance, but weakens the relationship between GOPs adoption and financial performance. Conversely, organizational slack strengthens the relationship between GOPs adoption and financial performance, but weakens the relationship between GOPs adoption and environmental performance. This study contributes to related literature and its findings provide new insights for managers and the government to manage the relationship between GOPs adoption and firm performance.

Insight into the Balancing Effect of a Digital Green Innovation (DGI) Network to Improve the Performance of DGI for Industry 5.0: Roles of Digital Empowerment and Green Organization Flexibility

“…Green resource flexibility emphasizes the accumulation of its own green resources through a variety of ways, while the scope of the application of green resources is expanded to match the existing green opportunities. When manufacturing enterprises deal with the dual carbon target scenario, they often need new green resources and new green ways to carry out green innovation [84]. In this process, it is very important to find new green resources and to change the use of existing green resources.…”

“…This inevitably requires national policies to tilt toward the digital green core technology field. The digital green technology and digital green resources of the LDGIN should be fully utilized to consolidate the performance of DGI [82][83][84][85][86]90]. The positive role of the two DGI networks should be brought into full play to improve the level of digital green core technology and digital green competitiveness.…”

Supply chain slack and sustainable development performance: The “fit–adjust” effect of objective and perceived environmental uncertainties

“…On the one hand, supply chain slack reduces information processing needs by becoming a resource for conflict resolution. Firms with sufficient slack would successfully deal with conflicts, become more proactive in broader problematic searches, and experiment with new strategies (Jiao et al, 2021; Symeou et al, 2019). On the other hand, supply chain slack would be employed as a buffer in executing timely strategic adjustments and changes (Bourgeois, 1981; Parida & Örtqvist, 2015), thereby enhancing flexibility and information processing capability to adapt to environment turbulence (Anand & Ward, 2004; Azadegan et al, 2013; Tan & Peng, 2003).…”

“…In previous studies, supply chain slack is negatively related to information processing needs. For instance, slack has been associated with corporate social responsibility and green operational practices from the perspective of need reduction orientation (e.g., Jiao et al, 2021; Liao & Long, 2018; Zhang et al, 2018). In addition, supply chain slack is positively associated with information processing capability.…”

“…Furthermore, early research also focused on the direct effects of slack on innovation, risk, and financial performance. Recently, there is an increasing interest in understanding the role of slack in facilitating the effectiveness of innovative management practices, including its effect on sustainable development (Jiao et al, 2021; Liao & Long, 2018; Xiao et al, 2018; Zhang et al, 2018). As more scholars have suggested complex contingencies (e.g., Azadegan et al, 2013; Khan & Mir, 2019; Tan & Peng, 2003), it is important to investigate how and when slack influences sustainable development performance (SDP) by addressing the following gaps.…”