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Sustainability Strategy and Eco‐Innovation: A Moderation Model

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  • Kuen‐Hung Tsai
  • Yi‐Chuan Liao

Abstract

This study develops a moderation model to examine the role of a proactive environmental strategy on eco‐innovation. Drawing upon the perspectives of contingency theory, this study argues that the impacts of sustainability strategy on eco‐innovation depend on market demand, innovation intensity and government subsidy. The sample used to test the hypotheses is obtained from the Community Innovation Survey in Taiwan. A total of 2955 manufacturing firms are included in the final sample. A logit moderating regression is adopted to analyze the models. The results reveal that market demand and government subsidy positively moderate the relationship between environmental strategy and eco‐innovation. Specifically, firms are more likely to adopt a proactive environmental strategy to improve eco‐innovation under high levels of market demand and government subsidy. Furthermore, the results indicate that innovation intensity affects the effect of environmental strategy on eco‐innovation, but the direction of the influence varies with different categories of eco‐innovation. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

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  • Kuen‐Hung Tsai & Yi‐Chuan Liao, 2017. "Sustainability Strategy and Eco‐Innovation: A Moderation Model," Business Strategy and the Environment, Wiley Blackwell, vol. 26(4), pages 426-437, May.
    • Handle: RePEc:bla:bstrat:v:26:y:2017:i:4:p:426-437
    DOI: 10.1002/bse.1926
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    Cited by:

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    7. Burcu Özgül & Cemal Zehir, 2023. "How Managers’ Green Transformational Leadership Affects a Firm’s Environmental Strategy, Green Innovation, and Performance: The Moderating Impact of Differentiation Strategy," Sustainability, MDPI, vol. 15(4), pages 1-20, February.
    8. Rauter, Romana & Globocnik, Dietfried & Baumgartner, Rupert J., 2023. "The role of organizational controls to advance sustainability innovation performance," Technovation, Elsevier, vol. 128(C).
    9. Shuanglian Chen & Zhehao Huang & Benjamin M. Drakeford & Pierre Failler, 2019. "Lending Interest Rate, Loaning Scale, and Government Subsidy Scale in Green Innovation," Energies, MDPI, vol. 12(23), pages 1-22, November.
    10. Antonella Biscione & Raul Caruso & Annunziata de Felice, 2021. "Environmental innovation in European transition countries," Applied Economics, Taylor & Francis Journals, vol. 53(5), pages 521-535, January.
    11. Hartmann, Julia & Inkpen, Andrew & Ramaswamy, Kannan, 2022. "An FsQCA exploration of multiple paths to ecological innovation adoption in European transportation," Journal of World Business, Elsevier, vol. 57(5).
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    13. Paulius Šūmakaris & Kristina Kovaitė & Renata Korsakienė, 2023. "An Integrated Approach to Evaluating Eco-Innovation Strategies from the Perspective of Strategic Green Transformation: A Case of the Lithuanian Furniture Industry," Sustainability, MDPI, vol. 15(11), pages 1-33, June.
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    15. Alfonso Aranda-Usón & Pilar Portillo-Tarragona & Luz María Marín-Vinuesa & Sabina Scarpellini, 2019. "Financial Resources for the Circular Economy: A Perspective from Businesses," Sustainability, MDPI, vol. 11(3), pages 1-23, February.
    16. Denicolai, Stefano & Zucchella, Antonella & Magnani, Giovanna, 2021. "Internationalization, digitalization, and sustainability: Are SMEs ready? A survey on synergies and substituting effects among growth paths," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    17. Ziad Ali Eid Alshawabkeh & Shaima’a Abdelqader Jaffal, 2021. "The Influential Relationship of Strategic Flexibility in Business Sustainability in the Pharmaceutical Companies’ Sector in Jordan," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 79-98.
    18. García-Granero, Eva M. & Piedra-Muñoz, Laura & Galdeano-Gómez, Emilio, 2020. "Measuring eco-innovation dimensions: The role of environmental corporate culture and commercial orientation," MPRA Paper 119909, University Library of Munich, Germany.
    19. Yali Zhang & Jun Sun & Zhaojun Yang & Shurong Li, 2018. "Organizational Learning and Green Innovation: Does Environmental Proactivity Matter?," Sustainability, MDPI, vol. 10(10), pages 1-14, October.
    20. Yabin Yu & Hua Cheng, 2021. "Environmental Taxes and Innovation in Chinese Textile Enterprises: Influence of Mediating Effects and Heterogeneous Factors," Sustainability, MDPI, vol. 13(8), pages 1-14, April.
    21. Dietfried Globocnik & Romana Rauter & Rupert J. Baumgartner, 2019. "Synergy Or Conflict? The Relationships Among Organisational Culture, Sustainability-Related Innovation Performance, And Economic Innovation Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(01), pages 1-38, January.

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