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The Impact of Political Connections on Corporate Green Innovation: The Mediating Effect of Corporate Social Responsibility and the Moderating Effect of Environmental Public Opinion

Author

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  • Bo Wang

    (School of Civil Engineering and Architecture, Southwest University of Science and Technology, Mianyang 621010, China)

  • Cheng Peng

    (School of Economics and Management, Southwest University of Science and Technology, Mianyang 621010, China)

  • Jiujiang Wu

    (Department of Civil and Environmental Engineering, Western University, London, ON N6A 5B9, Canada)

  • Fangwei Liao

    (School of Management, University of Science and Technology of China, Hefei 230026, China)

Abstract

The construction industry is the lifeblood of the national economy; thereby, to some extent, the green transformation of the construction industry is representative of the industrialization levels of modern construction, especially in China. Based on the panel data of A-share listed companies in China’s construction industry from 2014 to 2019, this work studies the influence mechanism of political connection on corporate green innovation by establishing a multiple regression model, analyzes the realization path of corporate social responsibility as an mediating variable on the impact of political connections on corporate green innovation, and reveals the role boundary of environmental public opinion as a moderating variable on the impact of political connections on corporate green innovation. The results show that political connection has a significant positive impact on corporate green innovation, and this impact exists in both state-owned and non-state-owned enterprises, as well as in the eastern region and the central and western regions of China. Moreover, corporate social responsibility plays a partial mediating role in the relationship between political connection and corporate green innovation, and serves as an effective value transfer intermediary, a benefit balance mechanism, and a risk avoidance method. Political connections urge enterprises to be more socially responsible, thus affecting green innovation. Additionally, environmental public opinion strengthens the positive impact of political connections on corporate green innovation, especially in non-state-owned enterprises and in the eastern regions with a higher degree of marketization. The research conclusions provide a new theoretical reference for promoting the transformation of green innovation and achieving high-quality development in the construction industry.

Suggested Citation

  • Bo Wang & Cheng Peng & Jiujiang Wu & Fangwei Liao, 2022. "The Impact of Political Connections on Corporate Green Innovation: The Mediating Effect of Corporate Social Responsibility and the Moderating Effect of Environmental Public Opinion," Sustainability, MDPI, vol. 14(8), pages 1-18, April.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:8:p:4708-:d:794005
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    Cited by:

    1. Qingyuan Yang & Shaorong Xu, 2022. "The Relationship between the Political Connections and Green Innovation Development of Chinese Enterprises—Empirical Analysis Based on Panel Data of Chinese A-Share Listed Companies," Sustainability, MDPI, vol. 14(20), pages 1-18, October.
    2. Huanan Sun & Lianmei Zhu & Anqi Wang & Shali Wang & Haijing Ma, 2022. "Analysis of Regional Social Capital, Enterprise Green Innovation and Green Total Factor Productivity—Based on Chinese A-Share Listed Companies from 2011 to 2019," Sustainability, MDPI, vol. 15(1), pages 1-21, December.
    3. Shanshan Gao & Wenqi Li & Jiayi Meng & Jianfeng Shi & Jianhua Zhu, 2023. "A Study on the Impact Mechanism of Digitalization on Corporate Green Innovation," Sustainability, MDPI, vol. 15(8), pages 1-21, April.
    4. Shusen Zhu & Hui Sun & Beibei Zhang & Zedong Yang & Xuechao Xia, 2023. "Bilateral Effects of ESG Responsibility Fulfillment of Industrial Companies on Green Innovation," Sustainability, MDPI, vol. 15(13), pages 1-20, June.

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