Green Process Innovation and Financial Performance in Emerging Economies: Moderating Effects of Absorptive Capacity and Green Subsidies

Xie, Xuemei; Huo, Jiage; Qi, Guoyou; Zhu, Kevin

doi:10.1109/tem.2015.2507585

Cited by 195 publications

(153 citation statements)

References 68 publications

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“…Considering that firms are likely to employ both types of green technologies—cleaner production technologies and end‐of‐pipe technologies (Hammar & Löfgren, )—in our work, green process innovation was divided into two dimensions as per the two green technology types (Xie et al, ). Following Yüksel () and Zeng et al (), cleaner production technologies were measured by three items: (a) an aim to reduce the consumption of resources and energy and to improve resource and energy efficiency; (b) consideration of environmental issues in the processes of production planning and control; and (c) the use of recycled materials, recycling techniques, and environmental technologies.…”

Section: Methodsmentioning

confidence: 99%

“…Research tends to divide green process innovation into two separate categories: cleaner production technology innovation and end-of-pipe technology innovation (Hammar & Löfgren, 2010;Hojnik & Ruzzier, 2016;Xie et al, 2016). Cleaner production technology refers to the continuous application of an integrated preventive environmental strategy that aims to minimize environmental harm and increase productivity, including using more efficient energy sources, reducing the use of natural resources, and replacing particular materials with the less-polluting ones (Hammar & Löfgren, 2010;Severo, de Guimarães, & Dorion, 2017;Xie et al, 2016;Yüksel, 2008;Zeng, Meng, Yin, Tam, & Sun, 2010). Generally, cleaner production technology is considered preferable in the long run because it reduces emissions at the source (Hammar & Löfgren, 2010;Zeng et al, 2010).…”

Section: Green Subsidies and Green Process Innovationmentioning

confidence: 99%

“…Some studies, for example, have focused on drivers facilitating green process innovation, including environmental regulation, market demand, political capital, and internal firm initiatives (e.g., El‐Kassar & Singh, ; Guo, Qu, & Tseng, ; Lin, Zeng, Ma, Qi, & Tam, ; Zailani, Govindan, Iranmanesh, Shaharudin, & Chong, ). Others have examined the consequences of green process innovation, including environmental performance (e.g., Huang & Li, ), social performance (e.g., Zailani et al, ), and financial performance (e.g., Xie et al, ). However, few researchers have paid attention to the drivers of green process innovation from the perspective of governmental financial incentives or examined the consequences of green process innovation from the perspective of a firm's green image.…”

Section: Introductionmentioning

confidence: 99%

“…Ma, Qi, & Tam, 2014;Zailani, Govindan, Iranmanesh, Shaharudin, & Chong, 2015). Others have examined the consequences of green process innovation, including environmental performance (e.g., , social performance (e.g., Zailani et al, 2015), and financial performance (e.g., Xie et al, 2016). However, few researchers have paid attention to the drivers of green process innovation from the perspective of governmental financial incentives or examined the consequences of green process innovation from the perspective of a firm's green image.…”

Section: Introductionmentioning

confidence: 99%

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Turning green subsidies into sustainability: How green process innovation improves firms' green image

2019

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Green process innovation has been seen as a key strategy for manufacturing firms to pursue sustainable development. Yet, how to help manufacturing firms eliminate bottlenecks when implementing green process innovation remains poorly understood. To address this issue, the current study, which is anchored in the government incentive perspective, examines the drivers, contingent conditions, and consequences of green process innovation by using the panel data of manufacturing‐listed firms in China from 2013 to 2017. The results present valuable findings: (a) green subsidies are positively related to two dimensions of green process innovation, namely, cleaner production technology and end‐of‐pipe technology; (b) both cleaner production technology and end‐of‐pipe technology are positively related to firms' green image; (c) a firm's cleaner production technology mediates the relationship between green subsidies and its green image; and (d) higher absorptive capacity strengthens the indirect effect of green subsidies on a firm's green image via cleaner production technology. Our results provide meaningful theoretical and practical implications by revealing the benefits of green subsidies through green process innovation by leveraging levels of absorptive capacity.

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Section: Methodsmentioning

confidence: 99%

Section: Green Subsidies and Green Process Innovationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Turning green subsidies into sustainability: How green process innovation improves firms' green image

2019

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“…This paper holds that green process innovation is committed to reducing the amount of sewage discharged in production through process renewal, equipment renovation and innovation, and pays more attention to the goal of "energy saving". For instance, some scholars choose the pollution intensity per unit output value to characterize the green process innovation from the characteristics of realizing the pollution reduction of production process [37][38][39]. Nevertheless, other scholars focus on innovation investment angle (introduction and improvement of new technology and new equipment), selecting the sum of R&D expenditure and technology innovation investment to measure green process innovation [35,36].…”

Section: Dependent Variables Measurementmentioning

confidence: 99%

Environmental Regulation, Government R&D Funding and Green Technology Innovation: Evidence from China Provincial Data

et al. 2018

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Abstract:The "environmental pollution-economic development" circle is a problem in the process of national sustainable development. As a complex concept of environmental protection and technology innovation, green technology innovation is the key to cracking this strange circle. This paper divides green technology innovation into green product innovation and green process innovation and measures green technology innovation based on the perspective of energy saving and emission reduction. Furthermore, we examine the effects of environmental regulation and government R&D funding on green technology innovation. The empirical findings are as follows: (1) from the dynamic point of view, we test whether there is a significant "U-shaped" relationship between environmental regulation and green technological innovation, and we find there exists an "inflection point" in the role of environmental regulation in green technology innovation, and China is at the stage of inhibition before the "inflection point"; (2) direct government funding and tax incentives can promote green technology innovation, but the promotion of government tax incentives to green technology innovation is not significant; (3) the interaction between environmental regulation and government R&D will promote green product innovation and inhibit green process innovation, which is closely related to the imbalance of environmental regulation intensity in energy saving and emission reduction. In addition, this paper also gives out three kinds of control variables (the level of regional development, the proportion of the regional manufacturing industry, and the development level of regional export-oriented economy) and presents their effects on green technology innovation.

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Green Innovation, Managerial Concern and Firm Performance: An Empirical Study

et al. 2017

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Extant literature, while often suggesting a positive link between green innovation and firm performance, is inconclusive. Moreover, the possibly moderating role of management has not been sufficiently considered. Using a unique dataset sampling 188 manufacturing firms in China, we examine how managerial concern (for green issues) moderates the relationship between green innovation and firm performance. We find that green process innovation and green product innovation both significantly (positively) predict firm performance, when not considering managerial concern for the environment. Once managerial concern is included, we observe that it compounds the positive effect of green process innovation on firm performance -but not product innovation, which no longer explains significant unique variance in firm performance. The findings hold various implications for future research and business policy.

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Green Process Innovation and Financial Performance in Emerging Economies: Moderating Effects of Absorptive Capacity and Green Subsidies

Cited by 195 publications

References 68 publications

Turning green subsidies into sustainability: How green process innovation improves firms' green image

Turning green subsidies into sustainability: How green process innovation improves firms' green image

Environmental Regulation, Government R&D Funding and Green Technology Innovation: Evidence from China Provincial Data

Green Innovation, Managerial Concern and Firm Performance: An Empirical Study

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