scholarly journals Linking Environmental Regulation and Financial Performance: The Mediating Role of Green Dynamic Capability and Sustainable Innovation

2020 ◽  
Vol 12 (3) ◽  
pp. 1007 ◽  
Author(s):  
Xinpeng Xing ◽  
Tiansen Liu ◽  
Lin Shen ◽  
Jianhua Wang

This study develops a multiple mediating model for exploring the link between environmental regulation and financial performance through green dynamic capability, sustainability exploration/exploitation innovation, based on the data from 355 Chinese manufacturing firms. Empirical results support a mediating role of green dynamic capability and sustainability exploration/exploitation in the link between environmental regulation and financial performance, respectively. What’s more, our findings indicate that environmental regulation can help improve financial performance via two multiple mediating paths, i.e., green dynamic capability and sustainability exploration innovation, as well as green dynamic capability and sustainability exploitation innovation. These key findings will help to understand how important green dynamic capability and sustainable innovation is when Chinese manufacturing firms establish a business-politics tie.

2019 ◽  
Vol 48 (3) ◽  
pp. 631-643 ◽  
Author(s):  
Naveed Iqbal Chaudhry ◽  
Iqra Aftab ◽  
Zainab Arif ◽  
Usman Tariq ◽  
Muhammad Azam Roomi

Purpose The purpose of this paper is to explain the relationship between customer-oriented strategy (COS) and financial performance (FP) of firm, to examine the role of supportive human resource management (HRM) in COS implementation and contribution toward FP of firm. It also examines the mediating role of innovation capability (IC) between COS and FP of firm. Design/methodology/approach The approach used for this study is quantitative. Data required for testing of hypothesis were gathered from the managers of manufacturing firms of Gujranwala, Pakistan. To conduct the data analysis, structural equation modeling was used. Findings Findings of this study showed that there is significantly positive relation between COS and FP with the significant positive mediating effects of supportive HRM and IC. Research limitations/implications This research has been conducted in manufacturing sector only. So, it is suggested to future researchers to carry out this research in other sectors. Second, this research focused only on IC but there are many other organizational capabilities (OC) that can be used. Practical implications This research would be helpful for all firms adopting COS to understand that how to mobilize their HR to accomplish the purpose of strategy. It will enable manufacturing firms to understand and work on IC. Originality/value This study is anticipated to add value to the existing literature of strategy process and OC. This study is one of the first to examine IC as mediator between COS and organizational FP so it opens new areas for research.


2020 ◽  
Vol 8 (1) ◽  
pp. 1750259
Author(s):  
Samson Ige Abolarinwa ◽  
Cosmas Ikechukwu Asogwa ◽  
Charity A. Ezenwakwelu ◽  
Timinepere O. Court ◽  
Samuel Adedoyin ◽  
...  

Green Finance ◽  
2021 ◽  
Vol 4 (1) ◽  
pp. 36-53
Author(s):  
Rizwan Ullah Khan ◽  
◽  
Hina Arif ◽  
Noor E Sahar ◽  
Arif Ali ◽  
...  

<abstract> <p>The current study investigates the influence of financial resources on environmental and financial performance with the mediating role of green practices (innovation) in manufacturing firms of the emerging economy, Pakistan. The research model and its proposed hypothesis was using 294 manufacturing firms' samples, for fruitful insights, the hypothesis was tested through a structured equation model using Smart PLS 3. Our results exhibited a positive and significant impact of financial resources on financial performance but not on environmental performance. However, green innovation fully mediates the relationship between financial resources and financial performance, while partially mediate the relationship between financial resources and environmental performance. Considering our insight, we suggest to the government that financially support the SMEs sector because they have a lack of tangible and intangible resources due to small size, and to easily adapt the green practices.</p> </abstract>


2017 ◽  
Vol 9 ◽  
pp. 184797901771262 ◽  
Author(s):  
Ahmad Adnan Al-Tit

Numerous studies have been conducted to explore the individual effects of organizational culture (OC) and supply chain management (SCM) practices on organizational performance (OP) in different settings. The aim of this study is to investigate the impact of OC and SCM on OP. The sample of the study consisted of 93 manufacturing firms in Jordan. Data were collected from employees and managers from different divisions using a reliable and valid measurement instrument. The findings confirm that both OC and SCM practices significantly predict OP. The current study is significant in reliably testing the relationship between SCM practices and OP; however, it is necessary to consider cultural assumptions, values and beliefs as the impact of OC on OP is greater than the impact of SCM practices. Based on the results, future studies should consider the moderating and mediating role of OC on the relationship between SCM practices and OP.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahnoor Zahid ◽  
Hina Naeem ◽  
Iqra Aftab ◽  
Sajawal Ali Mughal

Purpose The purpose of this study is to scrutinize the effect of corporate social responsibility activities (CSRA) of the firm on its financial performance (FP) and analyze the mediating role of innovation and competitive advantage (CA) in the relationship between CSRA and FP in the manufacturing sector of an emerging country, i.e. Pakistan. Design/methodology/approach Data has been collected through an electronic structured questionnaire from 300 middle-level and top-level managers by surveying different manufacturing firms of Gujranwala, Pakistan. The study’s hypotheses have been checked by analyzing the reliability and validity of data and applying confirmatory factor analysis and structural equation modeling through statistical package for the social sciences and analysis of moment structures. Findings Outcomes of this study supported the hypothesized model. It has been found that the CSRA plays a significant positive role in determining the FP of the firm. Furthermore, the CA and innovation have been proved as significant mediators between CSRA and FP. Originality/value The first time examining the intermediation of innovation and CA in the relationship between CSRA and FP is the primary input of this study to the literature. Practically, this study’s findings will help strategy makers of manufacturing firms in emerging countries develop better strategies for implementing CSRA, enhancing innovation, seeking CA and improving FP.


2020 ◽  
Vol 11 (4) ◽  
pp. 10
Author(s):  
Patrick M. Mutisya ◽  
Peter K'Obonyo ◽  
Kennedy Ogollah ◽  
James M. Njihia

The aim of this study was to establish the role of organizational design in the organizational ambidexterity - performance relationship among large manufacturing firms (LMFs) in Kenya. The studies linking ambidexterity to organizational performance are few and with mixed findings. The few studies indicate that there is no clear ambidexterity - organizational performance relationship. The research was founded on dynamic capabilities and configurations theories. Based on the reviewed literature, a conceptual model and hypotheses were formulated. The study was guided by positivist philosophy. The population of the research was the entire 107 Kenyan large manufacturing firms (LMFs). Cross-sectional research design was used. Primary data in respect of predictor variables was used and was collected using a structured questionnaire. The respondents were the senior managers of the large manufacturing firms (LMFs) in Kenya; namely Chief Executive Officers/Managing Directors (CEOs/MDs) or General Managers (GMs), or Heads of departments (HODs). Descriptive statistics, correlations, linear, multiple and hierarchical regressions were applied in the data scrutiny and interpretation. The study results showed partial organizational design mediating role in the organizational ambidexterity - performance association of LMFs in Kenya. The study findings are useful to practitioners and managers of LMFs, policymakers in government as well as scholars and researchers. The study recommends further studies on the mediating role of organizational design, different variable operationalization, diversify respondents and context as well as longitudinal study.


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