Abstract
Based on the awareness-motivation-capability framework, this research examines how firm-level factors (environmental scanning and organizational slack) individually and collectively interact with institutional factors (government support and industry competition) to influence a firm’s adoption of green management. Moreover, we distinguish the impacts of green management on financial performance and innovation performance. The empirical findings reveal that environmental scanning and organizational slack facilitate green management, government support strengthens these positive relationships, and industry competition attenuates the effect of environmental scanning on green management. In addition, green management enhances innovation performance to a greater extent than financial performance. This research provides an integrative framework illustrating how firm-level factors and institutional environments influence green decisions and proposes that green management may impact firm performance measures in distinctive ways.
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Notes
Given the relatively small sample size (N = 42), we adopted the criterion of p < .10 in this part. All the results are available on request.
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Acknowledgements
The National Natural Science Foundation of China (No. 71472150, No. 71503143) is gratefully acknowledged for the provision of support to this study.
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Appendix
Appendix
Measurement scales
Constructs | SFL |
---|---|
Environmental scanning [Composite reliability = .817; measured by Questionnaire B] | |
In the past three years, your company normally has: | |
Collected information on your competitors’ strategic tactics. | .672 |
Closely examined industry trends, practices, and strategies. | .818 |
Thoroughly examined future macroeconomic trends. | .840 |
Collected information on sales growth, customer preferences, and relevant technology. | * |
Organizational slack [Composite reliability = .803, measured by Questionnaire B] In the past three years, your company: | |
Has maintained a pool of financial resources that can be used on a discretionary basis. | .798 |
Is able to secure necessary bank loans. | .840 |
Has retained earnings sufficient for market expansion. | * |
Government support [Composite reliability = .890, measured by Questionnaire B] In the past three years, the government has: | |
Provided necessary technology information and support to our firm. | .838 |
Provided support for our firm to seek financial resources. | .837 |
Provided support to access imported technology and equipment when needed. | .725 |
Provided direct financial support such as tax reductions to our firm. | .883 |
Industry competition [Composite reliability = .735, measured by Questionnaire B] In the past three years, the industry in which our company involves has: | |
Had many new competitors enter the market. | .748 |
Engaged in many unpredictable competitive activities. | .738 |
Experienced more and more fierce competition. | .603 |
Green management [Composite reliability = .898; measured by Questionnaire A] In the past three years, your company has: | |
Protected the environment. | .801 |
Maintained a harmonious relationship with the nature. | .826 |
Maintained an ethical working environment. | .891 |
Utilized resources wisely and responsibly. | .747 |
Economized the usage of raw materials. | .718 |
Firm financial performance [Composite reliability = .889; measured by Questionnaire A] As compared with its major competitors, how has your firm performed in the past three years in terms of: | |
Profits. | .837 |
Return on investment. | .901 |
Return on assets. | .822 |
Firm innovation performance [Composite reliability = .816; measured by Questionnaire A] As compared to the major competitors, how has your firm performed in the past three years in terms of: | |
Number of new products. | .823 |
Number of patents. | .819 |
Number of R&D projects. | .683 |
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Shu, C., Zhao, M., Liu, J. et al. Why firms go green and how green impacts financial and innovation performance differently: An awareness-motivation-capability perspective. Asia Pac J Manag 37, 795–821 (2020). https://doi.org/10.1007/s10490-018-9630-8
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DOI: https://doi.org/10.1007/s10490-018-9630-8