Green research intensity and diversified performance: the moderating role of environmental regulation

Abstract

PurposeWhile implementing green innovation-driven strategies when facing growing grim environmental problems and the realistic demands of achieving high-quality development is increasingly urgent, changing abruptly is inevitably detrimental to the smooth functioning of social and economic development. Restrained by resources, innovation-driven strategy is a huge strategy for an organization to shift from traditional technological innovation to green innovation. Supports and implementation in green technology investment would necessarily crowd out other business investment and lead to reduction of innovation outputs and mount of financial uncertainty. Under the guidance of harmonious balance, the equilibrium allocation between green research and non-green counterpart is badly needed to be addressed for decision-makers inside and outside the organizations. The differentiated inputs of them would lead to different effects on organizational performance in practice.Design/methodology/approachThe authors first conducted a Hausman test on green research intensity (GRI) and innovation performance, economic performance, social performance, and environmental performance, respectively. Adopting the fixed effects model for estimation seems accurate, if there is no significant heteroscedasticity shown in the BP test. The authors then adopted the least square dummy variable method to handle individual heterogeneity (Xia et al., 2020). After controlling the industry effect and time effect simultaneously, the results were consistent with that of fixed effects model, thereby eliminating the impact of heteroscedasticity.FindingsThe authors construct a multi-dimensional performance system—innovation performance, economic performance, social performance, and environmental performance—to probe into the influence of GRI from the resource-based view and allocation theory. Different performance does not benefit equally from increasing the intensity of green research. Performance increase may squeeze out the quantity of total innovation but can compensate quality for knowledge spillovers of green technology. The organization's growth and long-term value may be beneficial from the increase, but not the short-term financial performance. While the relationship between GRI and social performance has the characteristic of reverse U-curve, there has to be some scale of green research to gain considerable and nonlinear environmental performance. Low level of green research may increase pollution until green research has cross over the inflection point. These relationships are intensely moderated by the environmental regulation.Research limitations/implicationsBecause of the focus of this study is on the organizational performance of green research, the analysis comes with some limitations that should be addressed in future research. Data were inter-professional, with large enterprises and small businesses innovating green technology at the same time. Though the hypotheses presented here were grounded in existing theoretical rationale, the generality of this study cannot be assumed. Multi-performance of green activities in small- and medium-sized businesses should be further explored. Additionally, concrete index of the corresponding evaluation system constructed here contribute more to practical activities of green innovation. Refinement of synergy performance index is the task for future work. Further, grounded in Chinese context, the authors' results could be compared with other scenario with institutional heterogeneity to provide detailed evidences for institutional theory. Future studies could also move forward to longitudinal case study to delicately investigate the performance differentiation of green research when in different development stage.Originality/valueFirst, what and how the authors do is novel as the authors use listed Chinese manufacturing companies to probe into the complex relationship between GRI and multiple performance rather than discussing the performance of green innovation input from a single perspective merely. Second, the authors systematically define the performance as economic performance, environmental performance, social performance and innovation performance in depth, which consider adequately the tangible and intangible value as well as internal and external benefits of green research. And finally, in the context of environmental regulation, the study discusses the differentiation of the increase of green research intensity from the perspective of resource constraints, providing reference for optimizing the resource allocation in green and non-green research and solving the decoupling between earnest social appeal and sluggish or reluctant green behaviors.

The role of green innovation on environmental and organizational performance: Moderation of human resource practices and management commitment

“…One of the possible explanations is the weak HR practices observed in this country. These results are consistent with the previous literature, such as [ 34 , 67 , 69 ]. Pakistan's HR department has primarily focused on compliance with routine HR practices and does not focus on the firms' strategic goals [ 21 , 90 ].…”

“…Environmental managerial presentation refers to evaluating the inter-relationship between producer and customers, thus promoting the eco-friendly image of the industry. Nie et al and Molina-Azorín et al [ 34 , 35 ] concentrated on green administration and financial outcomes. They demonstrated substantial & affirmative effects of environmental performance on a firm's financial performance.…”

Sustainability orientation and firm growth as ventures mature

“…The resources needed to innovate and reach sustainable goals often conflict with the means needed to satisfy profit goals (Nie et al, 2022). To investigate these counterbalancing forces, we create a variable, Innovation , to understand how the “innovative orientation” of entrepreneurial ventures influences the relationship between “sustainability orientation” and “business growth.” The respondents are asked whether their business delivers products and services that are new for either local, national, or foreign customers.…”

Heterogeneous knowledge spillover channels in universities and green technology innovation in local firms: Stimulating quantity or quality?

“…On the one hand, universities participate in innovation activities as R&D subjects. They promote knowledge transmission and diffusion among innovation agents through industry–university–research collaboration and knowledge flow (Anselin et al, 2000 ), to optimize the combination of science and technology with other production factors and promote the firm innovation ability and economic growth (Simonen and Mccann, 2008 ; Nie L. B. et al, 2022 ). Through technology transfer, patent licensing, and other ways, explicit knowledge can flow to firms.…”