The driving effect of internal and external environment on green innovation strategy-The moderating role of top management’s environmental awareness

2019 ◽  
Vol 10 (3) ◽  
pp. 342-361 ◽  
Author(s):  
Hongjun Cao ◽  
Zewen Chen
Keyword(s):  
Driving Forces ◽  
Environmental Awareness ◽  
External Environment ◽  
Moderating Effect ◽  
Innovation Strategy ◽  
Innovation Capability ◽  
Green Innovation ◽  
Content Type ◽  
The Relationship ◽  
Market Pressure

Purpose Green innovation strategy is not only a new idea to achieve green development but also the inevitable choice for enterprises to upgrade. At present, the research on the driving forces of green innovation strategy mainly focus on direct impact of single factor, lacking the overall consideration of internal and external environment. At the same time, research on the contingency effect of top management’s environmental awareness is scarce. This paper aims to explore how external environment pressures (policy pressures and market pressures) and internal environment driving force (innovation resources and innovation capability) make enterprises to choose green innovation strategy with moderating effect of top management’s environmental awareness. Design/methodology/approach Based on the sample of 216 enterprises, this paper explores the relationship between policy pressure, market pressure, innovation resources, innovation capability and the green innovation strategy with moderating effect of top management’s environmental awareness from inside and outside driving angle. Findings The results of the hierarchical regression model show, first, the driving effect of factors in the external environment. The coercive policy has an inverted U-shaped impact on the green innovation strategy. The incentive policy and the market pressure both have a significant positive impact on the green innovation strategy. Second, the driving effect of factors in the internal environment. The innovation capability has a significant positive impact on the green innovation strategy. The innovation resources have no significant impact on the green innovation strategy. Third, the moderating effect of top management’s environmental awareness. The relationship between the green innovation strategy and the coercive policy is stronger when the top management’s environmental awareness higher. The relationship between the green innovation strategy and the market pressure is stronger when the top management’s environmental awareness higher. The relationship between the green innovation strategy and the innovation resources is stronger when the top management’s environmental awareness higher. Otherwise, the relationship between the green innovation strategy and the innovation capability is weaker when the top management’s environmental awareness higher. And there is no significant change about the relationship between the green innovation strategy and the incentive policy when the top management’s environmental awareness higher. Originality/value First, the authors have promoted the integrated research on the drivers of the enterprise’s green innovation strategy. From the perspective of internal and external environment driving forces, this paper analyzes the key factors influencing the decision-making of the green innovation strategy. Second, the study has contributed to the strategic choice theory. This paper studies the driving mechanism of the green innovation strategy from a new perspective of the strategic choice theory.

The elements driving green innovation strategy in China

2019 ◽  
Vol 35 (5) ◽  
pp. 4-6
Keyword(s):  
Design Methodology ◽  
Reading Time ◽  
Innovation Strategy ◽  
Green Innovation ◽  
Content Type ◽  
Pertinent Information ◽  
Innovation Strategies ◽  
Chinese Company ◽  
Market Pressure ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on the internal and external elements involved in Chinese company decisions around the pursuit of green innovation strategies. Government coercion and incentives, as well as market pressure from consumers and competitors, are effective in driving environmental improvements in the operations of Chinese companies. Originality/value The briefing saves busy executives, strategists, and researchers’ hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Innovation capability configuration and its influence on the relationship between perceived innovation requirement and organizational performance

2018 ◽  
Vol 29 (8) ◽  
pp. 1316-1331 ◽  
Author(s):  
Ming-Feng Su ◽  
Kuo-Chih Cheng ◽  
Shao-Hsi Chung ◽  
Der-Fa Chen
Keyword(s):  
Organizational Performance ◽  
Product Innovation ◽  
Information Quality ◽  
Process Innovation ◽  
Innovation Strategy ◽  
Innovation Capability ◽  
Manufacturing Companies ◽  
Content Type ◽  
Innovation Capacity ◽  
The Relationship

Purpose When the management of an information technology (IT) manufacturing firm perceives a need for innovation due to any threat in the external environment, it will be prompted to use organizational resources to support innovation and improve organizational performance through the implementation of the innovation. The purpose of this paper is to explore whether an IT manufacturing firm’s budget slack, information quality of information system (IS), process innovation and product innovation would interact to collectively form an innovation capacity, which is termed “innovation capability configuration (ICC)”, and whether ICC mediates the relationship between perceived innovation requirement and organizational performance. Design/methodology/approach To answer these questions, a structural equation model was built and a questionnaire survey was conducted to collect data from research and development and production managers of IT manufacturing companies listed on the Taiwan Stock Exchange and Over-The-Counter markets. Findings The results showed that budget slack, IS information quality, process innovation and product innovation are all significantly related to ICC, in which high-quality information and low level of budget slack are the key factors that underpin the innovation capacity. In addition, ICC has a full mediation effect, that is, perceived innovation requirement positively influences ICC, which, in turn, improves organizational performance. Research limitations/implications Because all items in a questionnaire were answered by a manager, the common method variance might exist in this study. In addition, the effective recovery rate of the questionnaire was not high due to which the non-response bias might occur. Following the research limitations, several future research recommendations are proposed. Practical implications This study offers managerial implications for the development of an IT manufacturing firm’s innovation strategy and structure to smooth the implementation of innovation in the severe environment. Originality/value The study is the first attempt to integrate the four elements clearly illustrating the ICC, which is a more complete innovation strategy, thus contributing to improve the past fragmental studies and clarify some controversial points existing in the extant innovation research.

Open innovation, network embeddedness and incremental innovation capability

2020 ◽  
Vol 58 (12) ◽  
pp. 2655-2680
Author(s):  
Shaojie Han ◽  
Yibo Lyu ◽  
Ruonan Ji ◽  
Yuqing Zhu ◽  
Jingqin Su ◽  
...  
Keyword(s):  
Open Innovation ◽  
Moderating Effect ◽  
Incremental Innovation ◽  
Innovation Network ◽  
Innovation Capability ◽  
Content Type ◽  
Network Embeddedness ◽  
Structural Embeddedness ◽  
Negative Effect ◽  
The Relationship

PurposeThis study aims at developing a better understanding of the relationship between network embeddedness and incremental innovation capability and further examines the moderating effect of open innovation.Design/methodology/approachThis paper adopts hierarchical regressions to validate the theoretical model and collect the patent data of the top 54 firm patentees in the smartphone industry as empirical sample. Using patent citation network data, this paper estimates the relationship between open innovation, network embeddedness and incremental innovation capability.FindingsThis paper empirically shows that structural embeddedness exerts a negative effect on incremental innovation capability, while relational embeddedness is positively related to incremental innovation capability. And open innovation strengthens the relationship between network embeddedness and incremental innovation capability.Originality/valueThis paper shifts the focus of the determinants of incremental innovation capability from internal factors to the external network features by exploring the linkage between network embeddedness and incremental innovation capability. A counterintuitive conclusion is that structural embeddedness shows a negative effect on firm's incremental innovation capability. Furthermore, in contrast to most previous studies, which only focus on the direct effect of open innovation on the firm's incremental innovation capability, our study examines the moderating effect of open innovation on the relationships between network embeddedness and incremental innovation capability. At last, the results provide practical guidance for firms to occupy the beneficial network positions and adopt appropriate open innovation strategies to improve their incremental innovation capability.

Inbound open innovation and radical innovation capability

2018 ◽  
Vol 31 (3) ◽  
pp. 581-597 ◽  
Author(s):  
Xiaoxiao Shi ◽  
Qingpu Zhang
Keyword(s):  
Open Innovation ◽  
Smart Phone ◽  
Radical Innovation ◽  
Negative Influence ◽  
Moderating Effect ◽  
Innovation Capability ◽  
Content Type ◽  
Organizational Inertia ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to analyze the impact of inbound open innovation and organizational inertia on radical innovation capability (RIC). It also seeks to explore whether the existence of organizational inertia has a moderating effect and influence on the relationship between inbound open innovation and RIC. Design/methodology/approach In this empirical research, the authors collected sample of patents in smart phone industry over the 2000-2016 period. Then, the authors examined the direct roles of inbound open innovation and organizational inertia, and the moderating role of organizational inertia by using hierarchical regression analysis. Findings Results found that cognitive inertia (CI) has a positive influence on firms’ RIC, but network inertia (NI) has a negative influence on RIC. CI also has a significant moderating effect on the relationship between inbound open innovation and RIC, but NI only has a significant moderating effect on the relationship between open search breadth and RIC. Inbound open innovation directly affects RIC. Research limitations/implications The authors collected the patent data of this study within the single industry and excluded other types of industries. And it may limit the generalization of the findings. Practical implications The paper includes implications for adopting an appropriate open search strategy and developing a better understanding of organizational inertia on firms’ radical innovation behavior. The findings suggest future directions to technology intensive industries for improving their RIC. Originality/value This study contributes to the relationship between organizational inertia and RIC within the framework of inbound open innovation.

Green market orientation, green innovation capability, green knowledge acquisition and green brand positioning as determinants of new product success

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Prasad Siba Borah ◽  
Courage Simon Kofi Dogbe ◽  
Wisdom Wise Kwabla Pomegbe ◽  
Bylon Abeeku Bamfo ◽  
Lawrence Kwabena Hornuvo
Keyword(s):  
Knowledge Acquisition ◽  
Manufacturing Firms ◽  
Mediating Effect ◽  
Innovation Capability ◽  
Moderating Effects ◽  
Green Innovation ◽  
Content Type ◽  
Product Success ◽  
Green Market ◽  
The Relationship

PurposeThe purpose of this study is to assess if the mediating effect of green innovation capability (GIC) in the relationship between green market orientation (GMO) and new product success (NPS) was conditional on the moderating effects of green knowledge acquisition (GKA) and green brand positioning (GBP).Design/methodology/approachThe analysis was based on primary data gathered using a structured questionnaire, which was developed on a five-point Likert scale of 1-Strongly disagree to 5-Strongly agree. There were 259 manufacturing firms engaged in the study, with data analyzed using PROCESS macro (v.3.4) for SPSS (v.23).FindingsThe research revealed that GMO had no direct effect on NPS among manufacturing firms, the relationship was rather mediated by GIC of the firms. The effect of GMO on GIC was moderated by GKA, whereas the effect of GIC on NPS was moderated by GBP. Overall, the mediating effect of GIC in the relationship between GMO and NPS was conditional on the moderating effects of GKA and GBP.Research limitations/implicationsThe study focused on only knowledge acquisition (green), without recourse to assimilation, transformation and exploitation. These may, however, be very important in explaining the role of knowledge in green innovation.Practical implicationsGreen market-oriented manufacturing firms must seek to also make investments in GIC to transform those concepts into successful innovative products.Originality/valueDespite the increasing number of studies on GMO, very limited concentration has been paid to how firms could leverage on the potentials of GMO to enhance the success of new products introduced into the market. This study did not just establish the effect of GMO on the success of new products but also identified some intervening variables in this relationship.

Knowledge management practices and green innovation in SMES: the role of environmental awareness towards environmental sustainability

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Rashed Hasan Polas ◽  
Mosab I. Tabash ◽  
Amitab Bhattacharjee ◽  
Guillermo Antonio Dávila
Keyword(s):  
Knowledge Management ◽  
Knowledge Acquisition ◽  
Environmental Awareness ◽  
Knowledge Dissemination ◽  
Green Innovation ◽  
Content Type ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this study is to examine the impact of knowledge management dimensions (i.e. knowledge acquisition, knowledge dissemination and knowledge responsiveness) on green innovation. The study also seeks to determine whether these relationships are mediated by the environmental awareness in small and medium enterprises (SMEs) in the UAE. Design/methodology/approach Data were obtained from a sample of 194 SMEs (two informants from each firm that consist of 388 top managers) in Abu Dhabi, UAE. In this cross-sectional study, convenience random sampling was used. The positivism approach was adopted using a hypothetical statistical induction method. Validated measurement scales were used to measure the study constructs adopted from previous studies. Data were analysed using a quantitative approach with Smart partial least squares structural equation modelling (PLS-SEM) 3.0. Findings The results of the study indicated a positive and significant association between knowledge acquisition, knowledge dissemination and knowledge responsiveness with green innovation. Moreover, the data analysis confirmed that environmental awareness mediates the relationship between knowledge dissemination and green innovation. However, no mediation role of environmental awareness in the relationship between knowledge acquisition and knowledge responsiveness with green innovation was found. Practical implications Knowing how to manage knowledge effectively is considered to be one of the most important aspects of green innovations. Nonetheless, there was a dearth of literature highlighting the relevance of knowledge management for long-term organisational success. The results of this study present practical implications for SME professionals. Green innovation with the support of environmental awareness may help a firm understand and implement the importance of knowledge management into their administrative operations. They can subsequently become eco-innovative ecologically, economically and socially. Originality/value This is one of the very few studies that examine the effect of knowledge management dimensions (knowledge acquisition, knowledge dissemination and knowledge responsiveness) on green innovation in UAE SMEs.

Social and ethical practices and firm value: the moderating effect of green innovation: evidence from international ESG data

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Salim Chouaibi ◽  
Jamel Chouaibi
Keyword(s):  
Firm Value ◽  
Small Sample ◽  
Moderating Effect ◽  
Market Valuation ◽  
Green Innovation ◽  
Data Set ◽  
Ethical Practices ◽  
Content Type ◽  
Dynamic Dimension ◽  
The Relationship

Purpose This study aims to examine the potential effect of integrating social and ethical practices into strategy on the market valuation of environmental, social and governance (ESG) businesses using the moderating effect of green innovation. Design/methodology/approach The sample used consisted of 523 international firms listed on the ESG index and headquartered in North America and Western Europe, forming an unbalanced panel of 7,845 observations spanning the period 2005–2019. The authors run a fixed-effects panel regression model using the Thomson Reuters ASSET4 to test the relationship between societal and ethical practices and the stock market value creation. Similarly, as an extension of the research, this paper exploits two robustness analyzes. The authors tested the dynamic dimension of the data set through the generalized moment method and the effect of the legal system. Findings Evidence reveals a significant positive relationship between societal and ethical practices and businesses’ market valuation. The empirical results indicate that societal and ethical strengths increase firm value with the moderating effect of green innovation and weaknesses reduce it. The results found with the dynamic dimension of the data set indicate the existence of continuity between firm values over time. Research limitations/implications Given the long study period, many firms with missing data were eliminated. To avoid the small sample size, countries with few observations were included, which led to an uneven distribution between observations per country. Practical implications Findings from this paper can help ESG firms to consider their future growth opportunities in a context where the approach of business ethics occupies a central position in business valuation. Originality/value This study is the only study that provides ESG companies with seven different nationalities with evidence for the effect of social and ethical practices regarding market valuation. This paper is also relevant as it addresses the relationship between social effectiveness and financial efficiency, as well as the dynamic effect of this relationship.

The moderating effect of environmental turbulence on the relationship between innovation capability and business performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samuel Gyedu ◽  
Heng Tang ◽  
Albert Henry Ntarmah ◽  
Emmanuel Kwaku Manu
Keyword(s):  
Sample Size ◽  
Business Performance ◽  
Moderating Effect ◽  
Future Research ◽  
Innovation Capability ◽  
Telecommunication Sector ◽  
Content Type ◽  
Technological Turbulence ◽  
Market Turbulence ◽  
The Relationship

Purpose This study has dealt with the gap in the literature, by probing the influence of innovation capability on business performance. This paper aims to test the moderation role of technological turbulence (TT) and market turbulence (MT) on the relationship between innovation capability (IC) and business performance (BP). Design/methodology/approach The study used a quantitative survey and a sample size of 579 departmental heads. Branch managers and permanent staff from the Greater Accra, Ashanti and Western Region in the Ghana telecommunication sector. The obtained data was analysed through the STATA 15.0 and AMOS statistical software package. Findings The empirical results from multiple linear regressions revealed that product/service innovation, process innovation, marketing innovation and administrative innovation had positive effects on business performance. The outcome of the moderation analysis further shown that technological turbulence positively moderates the relationship that existed between the various constructs of innovation capability and business performance indicating that technological turbulence significantly strengthens the relationship between these variables. On the contrary, market turbulence significantly weakens the relationship between the various innovation capability constructs and business performance. Research limitations/implications Although this research has made significant contributions to both theory and practice, there are certainly some limitations and future research directions that need to be considered to appropriately position the study findings. Firstly, because of the limited sample size (579), further testing of these constructs needs to be carried out in future research using alternative data. Related to this, it would be prudent if the instruments and models developed in this research were tested in different industry contexts. Also, because the Ghana telecommunication sector is made up of foreign companies, comparative research could be conducted to compare the IC and performance of Ghana and the other countries where these companies operate. Indeed, analyses of IC and BP associated with the same companies in different countries may prove to be very beneficial in the global context. Secondly, this research used only TT and MT to test the moderating effect of ET on the association of IC with BP. Future research can include competition intensity which may change or confirm the outcome of these studies. Thirdly, only qualitative data were used for the measurement of IC and the level of BP. Therefore, future research could use quantitative or both qualitative and quantitative data to confirm if there will be significant differences in the results obtained. Practical implications Literature has examined the moderation effect of ET on different variables and relationships in different organizational settings. This study has tried to analyse the moderating effect of ET on the relationship of IC with BP. The outcomes of this study are similar to the previous research studies mentioned above, however, limited studies have been conducted on IC and its relationship with BP in the context of ET especially in the most vibrant sector of Ghana’s economy. These findings are very innovative and contribute enormously to literature and knowledge by indicating which moderating ET positively and significantly strengthens and the type which weakens the existing relationship between IC and BP within the Ghanaian telecommunication sector which no researcher has conducted. These findings will go a long way by aiding the players in this sector to tauten their IC wings to achieve resilient performance around the globe. Social implications This will also contribute to the growth of Ghana’s economy as sources of revenue and employment. Additionally, the results obtained from this study will prompt managers to make more informed and effective decisions regarding innovation activities and the environments in which they operate. Originality/value This paper adds knowledge and literature to the existing ones. It is a new development in the research field of Ghana. This is the first journal this study has been submitted.

Dynamic capabilities vs. innovation capability: are they related?

2014 ◽  
Vol 21 (3) ◽  
pp. 368-384 ◽  
Author(s):  
Lidija Breznik ◽  
Robert D. Hisrich
Keyword(s):  
Literature Review ◽  
Design Methodology ◽  
Dynamic Capabilities ◽  
Dynamic Capability ◽  
Future Research ◽  
Innovation Capability ◽  
New Approach ◽  
Content Type ◽  
New Research ◽  
The Relationship

Purpose – The purpose of this paper is to provide insights into the relationship between dynamic capabilities and innovation capabilities. It links dynamic capability with innovation capability and indicates the ways they can be related. Design/methodology/approach – The relationships between dynamic and innovation capability were investigated through a systematic literature review. Findings – The review indicates that common characteristics exist between of the both fields, which demonstrate six relationships. Additionally, findings show some inconsistencies and even contradictions. Originality/value – In this paper, the authors have compared dynamic capabilities, a relatively new approach in the field of strategic management, with innovation capabilities, a widely recognised crucial domain for sustained competitiveness. Since both areas address issues that are essential to today's environment, future research should seek to clarify both concepts, by undertaking some new research and developing comprehensive and unambiguous framework.

How does renqing influence purchase intentions in the Chinese business-to-business context?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xun Zhang ◽  
Biao Xu ◽  
Jun Wu
Keyword(s):  
Positive Relationship ◽  
Purchase Intentions ◽  
Moderating Effect ◽  
Content Type ◽  
Mediating Role ◽  
Chinese Business ◽  
The Relationship ◽  
Business To Business ◽  
Positive Effect

Purpose This study aims to examine the relationship between renqing and purchase intentions and the mechanism of its impact in the Chinese business-to-business (B2B) context. Design/methodology/approach Renqing in China has played an important role in business relationships and has been receiving increased attention in both practice and theory. However, little is known about whether it can influence purchase intentions in a rational B2B condition. This research aims to examine the relationship between renqing and purchase intentions and the mechanism of its impact in the Chinese B2B context. Based on a survey of 1,010 industry buyers from 468 Chinese downstream buyer companies, the empirical findings indicate a positive relationship between renqing and purchase intentions and the mediating role of long-term orientation (LTO) for increasing purchase intentions. In addition, this study also finds that product involvement (PI) has a negative moderating effect on the relationship between renqing and purchase intentions, which means that renqing has a big positive effect on purchase intentions in low PI conditions. The results highlight several implications for B2B companies that sell products to Chinese enterprises. Findings The empirical findings indicate a positive relationship between renqing and purchase intentions and the mediating role of LTO for increasing purchase intentions. In addition, this study also finds that PI has a negative moderating effect on the relationship between renqing and purchase intentions, which means that renqing has a big positive effect on purchase intentions in low PI conditions. Originality/value First of all, by answering the research question, this study shows that renqing has a positive effect on purchase intentions in Chinese B2B context. Second, this study elucidates the influence mechanism of renqing on purchase intention and identifies the mediating effect of LTO and the moderating effect of PI.

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