IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v29y2020i8p2984-2994.html
   My bibliography  Save this article

Human resource slack, sustainable innovation, and environmental performance of small and medium‐sized enterprises in sub‐Saharan Africa

Author

Listed:
  • Samuel Adomako
  • Nguyen Phong Nguyen

Abstract

Despite the burgeoning interests in the environmental strategy, there is a limited understanding of how human resource slack drives sustainable innovation and environmental performance. This paper contributes to filling this gap by examining the effect of human resource slack on sustainable innovation and its impact on environmental performance. Besides, this paper investigates the contingent effects of intangible resource advantage on this relationship. The hypotheses are tested using data from 301 small and medium‐sized enterprises in Ghana. The results suggest that human resource slack positively relates to sustainable innovation and this relationship is moderated by intangible resource advantage. Also, we find that sustainable innovation mediates the relationship between human resource slack and environmental performance. The insights from our paper provide a nuanced understanding of the relationships among human resource lack, sustainable innovation, and environmental performance. Implications for theory and practices are discussed.

Suggested Citation

  • Samuel Adomako & Nguyen Phong Nguyen, 2020. "Human resource slack, sustainable innovation, and environmental performance of small and medium‐sized enterprises in sub‐Saharan Africa," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 2984-2994, December.
  • Handle: RePEc:bla:bstrat:v:29:y:2020:i:8:p:2984-2994
    DOI: 10.1002/bse.2552
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.2552
    Download Restriction: no

    File URL: https://libkey.io/10.1002/bse.2552?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Symeou, Pavlos C. & Zyglidopoulos, Stelios & Gardberg, Naomi A., 2019. "Corporate environmental performance: Revisiting the role of organizational slack," Journal of Business Research, Elsevier, vol. 96(C), pages 169-182.
    2. Wiklund, Johan & Baker, Ted & Shepherd, Dean, 2010. "The age-effect of financial indicators as buffers against the liability of newness," Journal of Business Venturing, Elsevier, vol. 25(4), pages 423-437, July.
    3. Carrión-Flores, Carmen E. & Innes, Robert, 2010. "Environmental innovation and environmental performance," Journal of Environmental Economics and Management, Elsevier, vol. 59(1), pages 27-42, January.
    4. Dietrich H. Earnhart & Madhu Khanna & Thomas P. Lyon, 2014. "Corporate Environmental Strategies in Emerging Economies," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 8(2), pages 164-185.
    5. Stewart Thornhill & Raphael Amit, 2003. "Learning About Failure: Bankruptcy, Firm Age, and the Resource-Based View," Organization Science, INFORMS, vol. 14(5), pages 497-509, October.
    6. De Marchi, Valentina, 2012. "Environmental innovation and R&D cooperation: Empirical evidence from Spanish manufacturing firms," Research Policy, Elsevier, vol. 41(3), pages 614-623.
    7. Boso, Nathaniel & Danso, Albert & Leonidou, Constantinos & Uddin, Moshfique & Adeola, Ogechi & Hultman, Magnus, 2017. "Does financial resource slack drive sustainability expenditure in developing economy small and medium-sized enterprises?," Journal of Business Research, Elsevier, vol. 80(C), pages 247-256.
    8. Kjell Mårtensson & Karin Westerberg, 2016. "Corporate Environmental Strategies Towards Sustainable Development," Business Strategy and the Environment, Wiley Blackwell, vol. 25(1), pages 1-9, January.
    9. Shanyong Wang & Jun Li & Dingtao Zhao, 2018. "Institutional Pressures and Environmental Management Practices: The Moderating Effects of Environmental Commitment and Resource Availability," Business Strategy and the Environment, Wiley Blackwell, vol. 27(1), pages 52-69, January.
    10. Sergio Manrique & Carmen-Pilar Martí-Ballester, 2017. "Analyzing the Effect of Corporate Environmental Performance on Corporate Financial Performance in Developed and Developing Countries," Sustainability, MDPI, vol. 9(11), pages 1-30, October.
    11. Faisal Khurshid & Woo‐Yong Park & Felix T.S. Chan, 2019. "Innovation shock, outsourcing strategy, and environmental performance: The roles of prior green innovation experience and knowledge inheritance," Business Strategy and the Environment, Wiley Blackwell, vol. 28(8), pages 1572-1582, December.
    12. Jie Wu, 2015. "Differentiated Customer Pressures and Environmental Policies in China," Business Strategy and the Environment, Wiley Blackwell, vol. 24(3), pages 175-189, March.
    13. Scott L. Newbert, 2007. "Empirical research on the resource‐based view of the firm: an assessment and suggestions for future research," Strategic Management Journal, Wiley Blackwell, vol. 28(2), pages 121-146, February.
    14. Pargal, Sheoli & Wheeler, David, 1996. "Informal Regulation of Industrial Pollution in Developing Countries: Evidence from Indonesia," Journal of Political Economy, University of Chicago Press, vol. 104(6), pages 1314-1327, December.
    15. Shahzad, Ali M. & Mousa, Fariss T. & Sharfman, Mark P., 2016. "The implications of slack heterogeneity for the slack-resources and corporate social performance relationship," Journal of Business Research, Elsevier, vol. 69(12), pages 5964-5971.
    16. Tim Newton & George Harte, 1997. "Green Business: Technicist Kitsch?," Journal of Management Studies, Wiley Blackwell, vol. 34(1), pages 75-98, January.
    17. George E. Halkos & Konstantinos I. Evangelinos, 2002. "Determinants of environmental management systems standards implementation: evidence from Greek industry," Business Strategy and the Environment, Wiley Blackwell, vol. 11(6), pages 360-375, November.
    18. Dasgupta, Susmita & Hettige, Hemamala & Wheeler, David, 2000. "What Improves Environmental Compliance? Evidence from Mexican Industry," Journal of Environmental Economics and Management, Elsevier, vol. 39(1), pages 39-66, January.
    19. J. Ruben Boling & Torsten M. Pieper & Jeffrey G. Covin, 2016. "CEO Tenure and Entrepreneurial Orientation within Family and Nonfamily Firms," Entrepreneurship Theory and Practice, , vol. 40(4), pages 891-913, July.
    20. World Bank, 2018. "Doing Business 2018," World Bank Publications - Books, The World Bank Group, number 28608, December.
    21. Lan, Jing & Munro, Alistair, 2013. "Environmental compliance and human capital: Evidence from Chinese industrial firms," Resource and Energy Economics, Elsevier, vol. 35(4), pages 534-557.
    22. Zahra, Shaker A., 2007. "Contextualizing theory building in entrepreneurship research," Journal of Business Venturing, Elsevier, vol. 22(3), pages 443-452, May.
    23. Yuri Mishina & Timothy G. Pollock & Joseph F. Porac, 2004. "Are more resources always better for growth? Resource stickiness in market and product expansion," Strategic Management Journal, Wiley Blackwell, vol. 25(12), pages 1179-1197, December.
    24. Scott Shane & Toby Stuart, 2002. "Organizational Endowments and the Performance of University Start-ups," Management Science, INFORMS, vol. 48(1), pages 154-170, January.
    25. Jeffrey G. Covin & Dennis P. Slevin, 1991. "A Conceptual Model of Entrepreneurship as Firm Behavior," Entrepreneurship Theory and Practice, , vol. 16(1), pages 7-26, October.
    26. Justin Tan & Mike W. Peng, 2003. "Organizational slack and firm performance during economic transitions: two studies from an emerging economy," Strategic Management Journal, Wiley Blackwell, vol. 24(13), pages 1249-1263, December.
    27. Anderson, Brian S. & Eshima, Yoshihiro, 2013. "The influence of firm age and intangible resources on the relationship between entrepreneurial orientation and firm growth among Japanese SMEs," Journal of Business Venturing, Elsevier, vol. 28(3), pages 413-429.
    28. Kamel Mellahi & Adrian Wilkinson, 2010. "A Study of the Association between Level of Slack Reduction Following Downsizing and Innovation Output," Journal of Management Studies, Wiley Blackwell, vol. 47(3), pages 483-508, May.
    29. Stoyan Sgourev & Wim van Lent, 2017. "When too many are not enough: Human resource slack and performance at the Dutch East India Company (1700–1795)," Post-Print hal-02138289, HAL.
    30. Xinshu Zhao & John G. Lynch & Qimei Chen, 2010. "Reconsidering Baron and Kenny: Myths and Truths about Mediation Analysis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 37(2), pages 197-206, August.
    31. Fischel, William A., 1979. "Determinants of voting on environmental quality: A study of a New Hampshire pulp mill referendum," Journal of Environmental Economics and Management, Elsevier, vol. 6(2), pages 107-118, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yujia Liu & Ligang Liu & Ying Li, 2023. "Executive Hometown Identity and Green Innovation in Enterprises of Heavy Polluting Industries—A Dual Perspective Based on Conscious Motivation and Resource Access," Sustainability, MDPI, vol. 15(8), pages 1-20, April.
    2. Nguyen Phong Nguyen & Samuel Adomako, 2021. "Environmental proactivity, competitive strategy, and market performance: The mediating role of environmental reputation," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 2008-2020, May.
    3. Samuel Adomako & Nguyen Phong Nguyen, 2023. "Co‐innovation behavior and sustainable innovation in competitive environments," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(3), pages 1735-1747, June.
    4. Nguyen, Tam & Verreynne, Martie-Louise & Steen, John & Torres de Oliveira, Rui, 2023. "Government support versus international knowledge: Investigating innovations from emerging-market small and medium enterprises," Journal of Business Research, Elsevier, vol. 154(C).
    5. Nguyen Phong Nguyen & Samuel Adomako, 2022. "International orientation and environmental performance in Vietnamese exporting small‐ and medium‐sized enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2424-2436, July.
    6. Qaisar Iqbal & Noor Hazlina Ahmad & Yongmei Li, 2021. "Sustainable Leadership in Frontier Asia Region: Managerial Discretion and Environmental Innovation," Sustainability, MDPI, vol. 13(9), pages 1-14, April.
    7. Zahoor, Nadia & Zopiatis, Anastasios & Adomako, Samuel & Lamprinakos, Grigorios, 2023. "The micro-foundations of digitally transforming SMEs: How digital literacy and technology interact with managerial attributes," Journal of Business Research, Elsevier, vol. 159(C).
    8. Anna Kwiotkowska & Radosław Wolniak & Bożena Gajdzik & Magdalena Gębczyńska, 2022. "Configurational Paths of Leadership Competency Shortages and 4.0 Leadership Effectiveness: An fs/QCA Study," Sustainability, MDPI, vol. 14(5), pages 1-21, February.
    9. Khan, Rizwan Ullah & Richardson, Christopher & Salamzadeh, Yashar, 2022. "Spurring competitiveness, social and economic performance of family-owned SMEs through social entrepreneurship; a multi-analytical SEM & ANN perspective," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    10. Qaisar Iqbal & Noor Hazlina Ahmad & Zeyun Li & Yongmei Li, 2022. "To walk in beauty: Sustainable leadership, frugal innovation and environmental performance," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(3), pages 738-750, April.
    11. Ying Zhang & Shouming Chen & Yujia Li & Disney Leite Ramos, 2024. "Does Environmental Protection Law Bring about Greenwashing? Evidence from Heavy-Polluting Firms in China," Sustainability, MDPI, vol. 16(5), pages 1-20, February.
    12. Adomako, Samuel & Nguyen, Nguyen Phong, 2023. "Eco-innovation in the extractive industry: Combinative effects of social legitimacy, green management, and institutional pressures," Resources Policy, Elsevier, vol. 80(C).
    13. Tu Thanh Hoai & Nha Nguyen Minh & Hien Vo Van & Nguyen Phong Nguyen, 2023. "Accounting going green: The move toward environmental sustainability in Vietnamese manufacturing firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 1928-1941, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anderson, Brian S. & Eshima, Yoshihiro, 2013. "The influence of firm age and intangible resources on the relationship between entrepreneurial orientation and firm growth among Japanese SMEs," Journal of Business Venturing, Elsevier, vol. 28(3), pages 413-429.
    2. Samuel Adomako, 2020. "Environmental collaboration, sustainable innovation, and small and medium‐sized enterprise growth in sub‐Saharan Africa: Evidence from Ghana," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(6), pages 1609-1619, November.
    3. Boumediene Ramdani & Cherif Guermat & Kamel Mellahi, 2021. "The effect of downsizing on innovation outputs: The role of resource slack and constraints," Australian Journal of Management, Australian School of Business, vol. 46(2), pages 346-365, May.
    4. Du, Yunzhou & Kim, Phillip H. & Fourné, Sebastian P.L. & Wang, Xiaowei, 2022. "In times of plenty: Slack resources, R&D investment, and entrepreneurial firms in challenging institutional environments," Journal of Business Research, Elsevier, vol. 145(C), pages 360-376.
    5. Samuel Adomako, 2018. "The Moderating Effects Of Adaptive And Intellectual Resource Capabilities On The Relationship Between Entrepreneurial Orientation And Financial Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-35, April.
    6. Huang, Yi-Chun & Chen, Chih Ta, 2022. "Exploring institutional pressures, firm green slack, green product innovation and green new product success: Evidence from Taiwan's high-tech industries," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    7. Lan, Jing & Munro, Alistair, 2013. "Environmental compliance and human capital: Evidence from Chinese industrial firms," Resource and Energy Economics, Elsevier, vol. 35(4), pages 534-557.
    8. Teirlinck, Peter, 2020. "Engaging in new and more research-oriented R&D projects: Interplay between level of new slack, business strategy and slack absorption," Journal of Business Research, Elsevier, vol. 120(C), pages 181-194.
    9. Samuel Adomako & Nguyen Phong Nguyen, 2020. "Interfirm collaboration and corporate social responsibility expenditure in turbulent environments: The moderating role of entrepreneurial orientation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 2668-2678, November.
    10. Ciprian Stan & Mike Peng & Garry Bruton, 2014. "Slack and the performance of state-owned enterprises," Asia Pacific Journal of Management, Springer, vol. 31(2), pages 473-495, June.
    11. Tom Vanacker & Veroniek Collewaert & Ine Paeleman, 2013. "The Relationship between Slack Resources and the Performance of Entrepreneurial Firms: The Role of Venture Capital and Angel Investors," Journal of Management Studies, Wiley Blackwell, vol. 50(6), pages 1070-1096, September.
    12. Josep M. Argilés-Bosch & Josep Garcia-Blandón & Diego Ravenda & Mónica Martínez-Blasco, 2018. "An empirical analysis of the curvilinear relationship between slack and firm performance," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 29(3), pages 361-397, December.
    13. Wiersma, Eelke, 2017. "How and when do firms translate slack into better performance?," The British Accounting Review, Elsevier, vol. 49(5), pages 445-459.
    14. Guo, Feng & Zou, Bo & Zhang, Xiaofei & Bo, Qingwen & Li, Kai, 2020. "Financial slack and firm performance of SMMEs in China: Moderating effects of government subsidies and market-supporting institutions," International Journal of Production Economics, Elsevier, vol. 223(C).
    15. Ulrich Lichtenthaler, 2016. "The Role of Unabsorbed Slack in Internal and Collaborative Innovation Processes — A Resource-Based Framework," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 13(03), pages 1-13, June.
    16. Mai Dong Tran & Samuel Adomako, 2021. "How CEO social capital drives corporate social performance: The roles of stakeholders, and CEO tenure," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 819-830, March.
    17. Xiaoyu Yu & Yajie Li & Zhongfeng Su & Yida Tao & Bang Nguyen & Fan Xia, 2020. "Entrepreneurial bricolage and its effects on new venture growth and adaptiveness in an emerging economy," Asia Pacific Journal of Management, Springer, vol. 37(4), pages 1141-1163, December.
    18. Su-In Kim & Hyejeong Shin & Heejeong Shin & Sorah Park, 2019. "Organizational Slack, Corporate Social Responsibility, Sustainability, and Integrated Reporting: Evidence from Korea," Sustainability, MDPI, vol. 11(16), pages 1-17, August.
    19. Samuel Adomako & Joseph Amankwah‐Amoah & Albert Danso & Renata Konadu & Samuel Owusu‐Agyei, 2019. "Environmental sustainability orientation and performance of family and nonfamily firms," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1250-1259, September.
    20. Abubakar S. Garba & Ibrahim Kabir & Mahmoud A. Mahmoud, 2019. "Entrepreneurial Orientation And Growth Potential Of Microenterprises In Northwest, Nigeria," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 24(02), pages 1-20, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:29:y:2020:i:8:p:2984-2994. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.