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Can the Top Management Team’s Environmental Attention Promote Corporate Green Innovation?

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  • Ying Wang

    (School of Government, Beijing Normal University, Beijing 100875, China)

  • Yiyang Liu

    (School of Government, Beijing Normal University, Beijing 100875, China)

Abstract

Enterprise green innovation (GI) is the micro foundation for coping with the challenges of the ecological environment and achieving sustainable development. The top management team’s environmental attention (TMTEA) is crucial for guiding environmental strategy and resource investment and promoting enterprise transformation towards sustainable development and GI. Drawing on an attention-based view (ABV) and lifecycle theory, this study analyzes data from 1722 listed companies in China (2010–2021) to examine TMTEA’s impact on corporate GI and its regulatory mechanisms. The results show the following: (1) TMTEA promotes enterprise GI, particularly in the growth and decline stages. (2) Government environmental attention negatively moderates TMTEA’s influence on corporate GI. (3) Compensation and equity incentives positively moderate the TMTEA–GI relationship. These insights enrich executive attention and GI literature, aiding decision-makers and enterprises in formulating effective GI strategies. Limitations include reliance on Chinese-listed company data, potentially limiting generalizability, and the need for qualitative research to deepen understanding of management processes and governance mechanisms.

Suggested Citation

  • Ying Wang & Yiyang Liu, 2024. "Can the Top Management Team’s Environmental Attention Promote Corporate Green Innovation?," Sustainability, MDPI, vol. 16(8), pages 1-22, April.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:8:p:3495-:d:1380365
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