IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v30y2021i8p3907-3918.html
   My bibliography  Save this article

The effect of environmental regulations, top management commitment, and organizational learning on green product innovation: Evidence from automobile industry

Author

Listed:
  • Manjot Singh Bhatia
  • Suresh Kumar Jakhar

Abstract

This paper proposes and empirically examines a model to investigate the effect of environmental regulations, top management commitment (TMCO) and organizational learning toward green product innovation (GPI). The proposed theoretical model, grounded in dynamic capabilities view (DCV) and upper echelons theory, is analyzed by Partial least squares (PLS) method using the data from Indian automotive manufacturing firms. The findings indicate the importance of TMCO and organizational learning for implementing GPI (in response to regulations), and achieve desired performance. Further, organizational learning fully mediates between commitment of top management and GPI. The findings can be useful for managers in automotive manufacturing firms who are interested toward implementing GPI. The paper contributes to green innovation literature by empirically examining the role of TMCO and organizational learning for GPI.

Suggested Citation

  • Manjot Singh Bhatia & Suresh Kumar Jakhar, 2021. "The effect of environmental regulations, top management commitment, and organizational learning on green product innovation: Evidence from automobile industry," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 3907-3918, December.
    • Handle: RePEc:bla:bstrat:v:30:y:2021:i:8:p:3907-3918
    DOI: 10.1002/bse.2848
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.2848
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.2848?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. Paul Lanoie, 2008. "When And Why Does It Pay To Be Green?," CIRANO Papers 2008n-02a, CIRANO.
    2. Charles Edquist & Leif Hommen & Maureen McKelvey, 2001. "Innovation and Employment," Books, Edward Elgar Publishing, number 2138.
    3. Kristel Buysse & Alain Verbeke, 2003. "Proactive environmental strategies: a stakeholder management perspective," Strategic Management Journal, Wiley Blackwell, vol. 24(5), pages 453-470, May.
    4. Jing-Wen Huang & Yong-Hui Li, 2017. "Green Innovation and Performance: The View of Organizational Capability and Social Reciprocity," Journal of Business Ethics, Springer, vol. 145(2), pages 309-324, October.
    5. Long, Xingle & Chen, Yaqiong & Du, Jianguo & Oh, Keunyeob & Han, Insoo, 2017. "Environmental innovation and its impact on economic and environmental performance: Evidence from Korean-owned firms in China," Energy Policy, Elsevier, vol. 107(C), pages 131-137.
    6. Hye-Young Joo & Yong-Won Seo & Hokey Min, 2018. "Examining the effects of government intervention on the firm’s environmental and technological innovation capabilities and export performance," International Journal of Production Research, Taylor & Francis Journals, vol. 56(18), pages 6090-6111, September.
    7. Dong, Ciwei & Liu, Qingyu & Shen, Bin, 2019. "To be or not to be green? Strategic investment for green product development in a supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 131(C), pages 193-227.
    8. Dai, Jing & Montabon, Frank L. & Cantor, David E., 2014. "Linking rival and stakeholder pressure to green supply management: Mediating role of top management support," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 71(C), pages 173-187.
    9. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    10. Chiou, Tzu-Yun & Chan, Hing Kai & Lettice, Fiona & Chung, Sai Ho, 2011. "The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 822-836.
    11. Manjot Singh Bhatia & Rajiv Kumar Srivastava, 2019. "Antecedents of implementation success in closed-loop supply chain: an empirical investigation," International Journal of Production Research, Taylor & Francis Journals, vol. 57(23), pages 7344-7360, December.
    12. Gerald C. Kane & Maryam Alavi, 2007. "Information Technology and Organizational Learning: An Investigation of Exploration and Exploitation Processes," Organization Science, INFORMS, vol. 18(5), pages 796-812, October.
    13. Paul Shrivastava, 1995. "Environmental technologies and competitive advantage," Strategic Management Journal, Wiley Blackwell, vol. 16(S1), pages 183-200.
    14. Gavronski, Iuri & Klassen, Robert D. & Vachon, Stephan & Nascimento, Luis Felipe Machado do, 2011. "A resource-based view of green supply management," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 872-885.
    15. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    16. Dai, Jing & Cantor, David E. & Montabon, Frank L., 2017. "Examining corporate environmental proactivity and operational performance: A strategy-structure-capabilities-performance perspective within a green context," International Journal of Production Economics, Elsevier, vol. 193(C), pages 272-280.
    17. Vivek Ghosal, 2015. "Business Strategy and Firm Reorganization: Role of Changing Environmental Standards, Sustainable Business Initiatives and Global Market Conditions," Business Strategy and the Environment, Wiley Blackwell, vol. 24(2), pages 123-144, February.
    18. Ramkumar, M. & Schoenherr, Tobias & Wagner, Stephan M. & Jenamani, Mamata, 2019. "Q-TAM: A quality technology acceptance model for predicting organizational buyers’ continuance intentions for e-procurement services," International Journal of Production Economics, Elsevier, vol. 216(C), pages 333-348.
    19. Subhabrata Bobby Banerjee, 2001. "Managerial perceptions of corporate environmentalism: interpretations from industry and strategic implications for organizations," Journal of Management Studies, Wiley Blackwell, vol. 38(4), pages 489-513, June.
    20. Boas Shamir & Robert J. House & Michael B. Arthur, 1993. "The Motivational Effects of Charismatic Leadership: A Self-Concept Based Theory," Organization Science, INFORMS, vol. 4(4), pages 577-594, November.
    21. Yu-Shan Chen & Shyh-Bao Lai & Chao-Tung Wen, 2006. "The Influence of Green Innovation Performance on Corporate Advantage in Taiwan," Journal of Business Ethics, Springer, vol. 67(4), pages 331-339, September.
    22. Luo, Jun & Chong, Alain Yee-Loong & Ngai, Eric W.T. & Liu, Martin J., 2015. "Reprint of “Green Supply Chain Collaboration implementation in China: The mediating role of guanxi”," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 74(C), pages 37-49.
    23. Ching-Hsun Chang, 2011. "The Influence of Corporate Environmental Ethics on Competitive Advantage: The Mediation Role of Green Innovation," Journal of Business Ethics, Springer, vol. 104(3), pages 361-370, December.
    24. Akter, Shahriar & Wamba, Samuel Fosso & Gunasekaran, Angappa & Dubey, Rameshwar & Childe, Stephen J., 2016. "How to improve firm performance using big data analytics capability and business strategy alignment?," International Journal of Production Economics, Elsevier, vol. 182(C), pages 113-131.
    25. Yu-Shan Chen & Ching-Hsun Chang, 2013. "The Determinants of Green Product Development Performance: Green Dynamic Capabilities, Green Transformational Leadership, and Green Creativity," Journal of Business Ethics, Springer, vol. 116(1), pages 107-119, August.
    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. Syed Muhammad Fazal‐e‐Hasan & Hormoz Ahmadi & Harjit Sekhon & Gary Mortimer & Mohd Sadiq & Husni Kharouf & Muhammad Abid, 2023. "The role of green innovation and hope in employee retention," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 220-239, January.
    2. Amber Batwara & Vikram Sharma & Mohit Makkar & Antonio Giallanza, 2022. "An Empirical Investigation of Green Product Design and Development Strategies for Eco Industries Using Kano Model and Fuzzy AHP," Sustainability, MDPI, vol. 14(14), pages 1-35, July.
    3. Xie, Xuemei & Han, Yuhang & Hoang, Thu Thao, 2022. "Can green process innovation improve both financial and environmental performance? The roles of TMT heterogeneity and ownership," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    4. Luu Trong Tuan, 2023. "Fostering green product innovation through green entrepreneurial orientation: The roles of employee green creativity, green role identity, and organizational transactive memory system," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 639-653, January.
    5. Dinesh Seth & Minhaj Ahemad A. Rehman, 2022. "Critical success factors‐based strategy to facilitate green manufacturing for responsible business: An application experience in Indian context," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 2786-2806, November.
    6. Na Wang & Shan Jin Zhang & Wei Wang, 2022. "Impact of Environmental Innovation Strategy on Green Competitiveness: Evidence from China," IJERPH, MDPI, vol. 19(10), pages 1-17, May.
    7. Yu Zhang & Yajuan Wang, 2022. "Do Managerial Ties Help or Hinder Corporate Green Innovation? The Moderating Roles of Contextual Factors," IJERPH, MDPI, vol. 19(7), pages 1-19, March.
    8. 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.
    9. Zongwei Li & Jianing Chen & Yanhui Zhang, 2023. "Can “Internet Plus” Enhance the Green Transition? The Moderating Roles of Environmental Regulation and Sewage Fee-to-Tax," Sustainability, MDPI, vol. 15(4), pages 1-20, February.
    10. Chen, Zan & Jin, Jun & Li, Meng, 2022. "Does media coverage influence firm green innovation? The moderating role of regional environment," Technology in Society, Elsevier, vol. 70(C).
    11. Dongmei Lee & Yuxia Fu & Daijiao Zhou & Tao Nie & Zhihong Song, 2022. "Is There a Missing Link? Exploring the Effects of Institutional Pressures on Environmental Performance in the Chinese Construction Industry," IJERPH, MDPI, vol. 19(18), pages 1-23, September.
    12. Qiang Zhang & Xiumei Zhu & Min-Jae Lee, 2024. "Exploring Institutional Pressures, Green Innovation, and Sustainable Performance: Examining the Mediated Moderation Role of Entrepreneurial Orientation," Sustainability, MDPI, vol. 16(5), pages 1-20, March.
    13. Jakeline Serrano‐García & Andrea Bikfalvi & Josep Llach & Juan José Arbeláez‐Toro, 2022. "Capabilities and organisational dimensions conducive to green product innovation: Evidence from Croatian and Spanish manufacturing firms," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 2767-2785, November.
    14. Francesco Gangi & Mario Mustilli & Lucia Michela Daniele & Maria Coscia, 2022. "The sustainable development of the aerospace industry: Drivers and impact of corporate environmental responsibility," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 218-235, January.
    15. Adriana Liute & Maria Rosa De Giacomo, 2022. "The environmental performance of UK‐based B Corp companies: An analysis based on the triple bottom line approach," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 810-827, March.

    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. Manjot Singh Bhatia, 2021. "Green process innovation and operational performance: The role of proactive environment strategy, technological capabilities, and organizational learning," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 2845-2857, November.
    2. Lu Qiu & Xiaowen Jie & Yanan Wang & Minjuan Zhao, 2020. "Green product innovation, green dynamic capability, and competitive advantage: Evidence from Chinese manufacturing enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 146-165, January.
    3. Tariq, Adeel & Badir, Yuosre F. & Tariq, Waqas & Bhutta, Umair Saeed, 2017. "Drivers and consequences of green product and process innovation: A systematic review, conceptual framework, and future outlook," Technology in Society, Elsevier, vol. 51(C), pages 8-23.
    4. Tze San Ong & Ah Suat Lee & Boon Heng Teh & Hussain Bakhsh Magsi, 2019. "Environmental Innovation, Environmental Performance and Financial Performance: Evidence from Malaysian Environmental Proactive Firms," Sustainability, MDPI, vol. 11(12), pages 1-18, June.
    5. Hongyi Mao & Jiang Lu, 2023. "Big Data Management Capabilities and Green Innovation: A Dynamic Capabilities View," Sustainability, MDPI, vol. 15(19), pages 1-27, October.
    6. Achi, Awele & Adeola, Ogechi & Achi, Francis Chukwuedo, 2022. "CSR and green process innovation as antecedents of micro, small, and medium enterprise performance: Moderating role of perceived environmental volatility," Journal of Business Research, Elsevier, vol. 139(C), pages 771-781.
    7. Manjot Singh Bhatia & Saurabh Kumar, 2022. "Linking stakeholder and competitive pressure to Industry 4.0 and performance: Mediating effect of environmental commitment and green process innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 1905-1918, July.
    8. Jing-Wen Huang & Yong-Hui Li, 2017. "Green Innovation and Performance: The View of Organizational Capability and Social Reciprocity," Journal of Business Ethics, Springer, vol. 145(2), pages 309-324, October.
    9. Ying Guo, 2023. "External Knowledge Acquisition and Green Innovation in Chinese Firms: Unveiling the Impact of Green Dynamic Capabilities," SAGE Open, , vol. 13(3), pages 21582440231, July.
    10. Ayça Kubra Hizarci‐Payne & İlayda İpek & Gülüzar Kurt Gümüş, 2021. "How environmental innovation influences firm performance: A meta‐analytic review," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1174-1190, February.
    11. Yu-Shan Chen & Ching-Hsun Chang, 2013. "The Determinants of Green Product Development Performance: Green Dynamic Capabilities, Green Transformational Leadership, and Green Creativity," Journal of Business Ethics, Springer, vol. 116(1), pages 107-119, August.
    12. Wenhao Song & Hongyan Yu, 2018. "Green Innovation Strategy and Green Innovation: The Roles of Green Creativity and Green Organizational Identity," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(2), pages 135-150, March.
    13. Magdalena Pichlak, 2021. "The Drivers of Technological Eco-Innovation—Dynamic Capabilities and Leadership," Sustainability, MDPI, vol. 13(10), pages 1-17, May.
    14. Albort-Morant, Gema & Leal-Millán, Antonio & Cepeda-Carrión, Gabriel, 2016. "The antecedents of green innovation performance: A model of learning and capabilities," Journal of Business Research, Elsevier, vol. 69(11), pages 4912-4917.
    15. Jiawei Li & Jianghong Zeng & Zhengke Ye & Xiangrong Huang, 2021. "Are Clean Technologies More Effective Than End-of-Pipe Technologies? Evidence from Chinese Manufacturing," IJERPH, MDPI, vol. 18(8), pages 1-17, April.
    16. Zhang Xiaoyi & Hailan Yang & Nilesh Kumar & Maqsood H. Bhutto & Wang Kun & Tianyang Hu, 2023. "Assessing Chinese Textile and Apparel Industry Business Sustainability: The Role of Organization Green Culture, Green Dynamic Capabilities, and Green Innovation in Relation to Environmental Orientatio," Sustainability, MDPI, vol. 15(11), pages 1-21, May.
    17. Jeremy Galbreath & Chia‐Yang Chang & Daniel Tisch, 2023. "The impact of a proactive environmental strategy on environmentally sustainable practices in service firms: The moderating effect of information use value," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5420-5434, December.
    18. Feng Zhang & Lei Zhu, 2019. "Enhancing corporate sustainable development: Stakeholder pressures, organizational learning, and green innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1012-1026, September.
    19. Chulin Pan & Yufeng Jiang & Mingliang Wang & Shuang Xu & Ming Xu & Yixin Dong, 2021. "How Can Agricultural Corporate Build Sustainable Competitive Advantage through Green Intellectual Capital? A New Environmental Management Approach to Green Agriculture," IJERPH, MDPI, vol. 18(15), pages 1-26, July.
    20. Jana Hojnik & Mitja Ruzzier & Tatiana Manolova, 2017. "Eco-Innovation and Firm Efficiency: Empirical Evidence from Slovenia," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 11(3), pages 103-111.

    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:30:y:2021:i:8:p:3907-3918. 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.