Institutional Forces and Environmental Management Strategy: Moderating Effects of Environmental Orientation and Innovation Capability

Abstract

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Stakeholder pressure for sustainability: Can ‘innovative capabilities’ explain the idiosyncratic response in the manufacturing firms?

“…It is noteworthy to state that innovative practices and environmental innovative practices are used interchangeably. We juxtapose our findings with the findings of Kang and He (2018), Ruan, Hang and Wang (2014) and Yi, Hong, Hsu and Wang (2017) that unlike China, regulatory stakeholder pressures in India inhibit the adoption of sustainable practices with enduring focus and analyse the reasons thereof.…”

“…The findings are incongruous with the claims of Menguc, Auh and Ozanne (2010) showing that government intervention may not be inhibiting. Moreover, an empirical study of the manufacturing firms operating in China also finds that institutional forces (i.e., regulative, public and industrial) positively influence the environmental management strategy (Kang & He, 2018). Furthermore, a meta‐analysis of 68 studies by Liu, Guo and Chi (2015) also conclude that in China, regulations have a significantly positive influence on proactive environmental strategies.…”

Can voluntary environmental regulation promote corporate technological innovation?

“…Despite industry categories, there are several other elements that may affect the relationship between VER and CTI. For example, Kang and He () confirmed that corporate strategy orientation can influence the effect of VER on performance. Chang, Li, and Lu () believed that the innovation effect of VER is significantly related to governmental support.…”

Governmental inspection and green innovation: Examining the role of environmental capability and institutional development

“…Second, a high regulatory compliance capability enables a firm to take advantage of governmental inspection and to turn it into an opportunity to establish competitive advantage (Escobar & Chavez, ). Thus, possessing and effectively applying regulatory compliance capability will provide a firm with a potential avenue of differentiation through the adoption of a green innovation strategy (Kang & He, ).…”