Finding the right shade of embeddedness: the effect of political embeddedness on green innovation

Abstract

PurposeFew efforts have considered political embeddedness heterogeneity and examined whether different types of political embeddedness can pose different valuation effect on green innovation. Address to this concern, this paper aims to provide a more nuanced conceptualization of different types of political embeddedness and their effects on green innovation.Design/methodology/approachThis paper conducts negative binomial method to test our predicts and adopts propensity score match (PSM) and placebo test to mitigate endogeneity issues.FindingsThe interpersonal political embeddedness (IPPE) has a stronger positive effect on green innovation than the interorganizational political embeddedness (IOPE) and that such effect depends on multiple factors at an individual (i.e. Cheif executive officer (CEO) duality), firm (i.e. firm growth) and environment (i.e. industrial competition) level. Figure 1 is the research model. The relationship is more pronounced when the firm has a dual leadership structure and a high level of firm growth and is less pronounced when a firm is engaged in intensive industrial competition.Originality/valueThe authors extend political embeddedness literature by introducing and distinguishing the concept of IPPE and IOPE. The authors enrich green innovation research by revealing how corporate green innovation is effected by the IPPE and the IOPE.