IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v9y2017i11p1980-d117012.html
   My bibliography  Save this article

The Effects of Government Support on Corporate Performance Hedging against International Environmental Regulation

Author

Listed:
  • Hye-Young Joo

    (Graduate School of International Logistics and Trade, Chung-Ang University, 84 Heukseok-ro, Dongjak-gu, Seoul 06794, Korea)

  • Hyunsuk Suh

    (College of Business and Economics, Chung-Ang University, 84 Heukseok-ro, Dongjak-gu, Seoul 156-756, Korea)

Abstract

Government support systems are crucial for export SMEs (Small to Medium Enterprises) to cope with growing international environmental regulations. However, empirical studies show a limited research area to explore the performance of export SMEs with the help of government support systems to meet international environmental regulations. This study draws implications on the relationship between government support and corporate performance on export SMEs between two countries: Korea and China. Based on 350 samples from Korea and 320 from China, we diagnosed government supports most positively affects corporate performances in the area of eco-innovation. While education, certificate, and tax supports were less pressing areas to support, no significance was found in information support. Furthermore, we found that eco-innovation is the strongest motive to accelerate corporate performance. Finally, the support of Chinese government on firms seems to be more affective when compared to Korean government support.

Suggested Citation

  • Hye-Young Joo & Hyunsuk Suh, 2017. "The Effects of Government Support on Corporate Performance Hedging against International Environmental Regulation," Sustainability, MDPI, vol. 9(11), pages 1-25, October.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:11:p:1980-:d:117012
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/9/11/1980/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/9/11/1980/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Johan Hauknes, "undated". "Technological infrastructures and innovation policies," STEP Report series 199909, The STEP Group, Studies in technology, innovation and economic policy.
    2. Triguero, Angela & Moreno-Mondéjar, Lourdes & Davia, María A., 2013. "Drivers of different types of eco-innovation in European SMEs," Ecological Economics, Elsevier, vol. 92(C), pages 25-33.
    3. Gary A Knight & S Tamar Cavusgil, 2004. "Innovation, organizational capabilities, and the born-global firm," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(2), pages 124-141, March.
    4. Czarnitzki, Dirk & Hanel, Petr & Rosa, Julio Miguel, 2011. "Evaluating the impact of R&D tax credits on innovation: A microeconometric study on Canadian firms," Research Policy, Elsevier, vol. 40(2), pages 217-229, March.
    5. Horbach, Jens & Rammer, Christian & Rennings, Klaus, 2012. "Determinants of eco-innovations by type of environmental impact — The role of regulatory push/pull, technology push and market pull," Ecological Economics, Elsevier, vol. 78(C), pages 112-122.
    6. De Giovanni, Pietro & Esposito Vinzi, Vincenzo, 2012. "Covariance versus component-based estimations of performance in green supply chain management," International Journal of Production Economics, Elsevier, vol. 135(2), pages 907-916.
    7. Rennings, Klaus, 2000. "Redefining innovation -- eco-innovation research and the contribution from ecological economics," Ecological Economics, Elsevier, vol. 32(2), pages 319-332, February.
    8. Camisón, César & Villar-López, Ana, 2014. "Organizational innovation as an enabler of technological innovation capabilities and firm performance," Journal of Business Research, Elsevier, vol. 67(1), pages 2891-2902.
    9. Andrew King & Michael Lenox, 2002. "Exploring the Locus of Profitable Pollution Reduction," Management Science, INFORMS, vol. 48(2), pages 289-299, February.
    10. Gary A Knight & S Tamer Cavusgil, 2004. "Innovation, organizational capabilities, and the born-global firm," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(4), pages 334-334, July.
    11. Maria Vredin Johansson, 2007. "Incentives and outcomes: Evaluation of a Swedish environmental subsidy programme," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 50(3), pages 343-362.
    12. Robert Bennett, 2008. "SME Policy Support in Britain since the 1990s: What have We Learnt?," Environment and Planning C, , vol. 26(2), pages 375-397, April.
    13. Bergek, Anna & Berggren, Christian, 2014. "The impact of environmental policy instruments on innovation: A review of energy and automotive industry studies," Ecological Economics, Elsevier, vol. 106(C), pages 112-123.
    14. Bettina Becker, 2015. "Public R&D Policies And Private R&D Investment: A Survey Of The Empirical Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 29(5), pages 917-942, December.
    15. Yam, Richard C.M. & Lo, William & Tang, Esther P.Y. & Lau, Antonio K.W., 2011. "Analysis of sources of innovation, technological innovation capabilities, and performance: An empirical study of Hong Kong manufacturing industries," Research Policy, Elsevier, vol. 40(3), pages 391-402, April.
    16. Yohei Kobayashi, 2014. "Effect of R&D tax credits for SMEs in Japan: a microeconometric analysis focused on liquidity constraints," Small Business Economics, Springer, vol. 42(2), pages 311-327, February.
    17. Doron Lavee & Hadas Joseph-Ezra, 2015. "The Development and use of Economic Instruments in Environmental Policy: The Case of Israel," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 17(02), pages 1-23.
    18. Pavitt, Keith & Robson, Michael & Townsend, Joe, 1987. "The Size Distribution of Innovating Firms in the UK: 1945-1983," Journal of Industrial Economics, Wiley Blackwell, vol. 35(3), pages 297-316, March.
    19. Doran, Justin & Ryan, Geraldine, 2012. "Regulation and Firm Perception, Eco-Innovation and Firm Performance," MPRA Paper 44578, University Library of Munich, Germany.
    20. Doh, Soogwan & Kim, Byungkyu, 2014. "Government support for SME innovations in the regional industries: The case of government financial support program in South Korea," Research Policy, Elsevier, vol. 43(9), pages 1557-1569.
    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. Yu Zhang & Jie Wang & Jiakai Chen & Weizhong Liu, 2023. "Does environmental regulation policy help improve business performance of manufacturing enterprises? evidence from China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(5), pages 4335-4364, May.
    2. Tianshun Ruan & Ying Gu & Xinhao Li & Rong Qu, 2022. "Research on the Practical Path of Resource-Based Enterprises to Improve Environmental Efficiency in Digital Transformation," Sustainability, MDPI, vol. 14(21), pages 1-17, October.
    3. Jugend, Daniel & Fiorini, Paula De Camargo & Armellini, Fabiano & Ferrari, Aline Gabriela, 2020. "Public support for innovation: A systematic review of the literature and implications for open innovation," Technological Forecasting and Social Change, Elsevier, vol. 156(C).
    4. Saxena Ashish & Tiwari Sadhana & Bhardwaj Shashank & Srivastava Shweta & Kumar Nitendra, 2023. "A Bibliometric Review of Green Finance: Current Status, Development and Future Directions," Folia Oeconomica Stetinensia, Sciendo, vol. 23(2), pages 331-351, December.
    5. Olakunle Jayeola & Shafie Sidek & Zulkiflee Abdul-Samad & Nornajihah Nadia Hasbullah & Saiful Anwar & Nguyen Binh An & Vu Thi Nga & Omar Al-Kasasbeh & Samrat Ray, 2022. "The Mediating and Moderating Effects of Top Management Support on the Cloud ERP Implementation–Financial Performance Relationship," Sustainability, MDPI, vol. 14(9), pages 1-17, May.
    6. Rizwan Ullah Khan & Arshad Mahmood & Mohammed Ahmed & Makwan Jamil Mustafa & Mohammad Khamis Alshamsi & Qaisar Iqbal & Yashar Salamzadeh, 2021. "Impact of network structure on sustainable competitive performance among Pakistani small and medium enterprises: does government financial support matter?," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 579-591, December.
    7. Asem Alkahtani & Norfarah Nordin & Rizwan Ullah Khan, 2020. "Does government support enhance the relation between networking structure and sustainable competitive performance among SMEs?," Journal of Innovation and Entrepreneurship, Springer, vol. 9(1), pages 1-16, December.
    8. Mingxing Li & Xinxing Wang & Zihao Wang & Babar Maqbool & Abid Hussain & Waris Ali Khan, 2022. "Bibliometric Analysis of the Research on the Impact of Environmental Regulation on Green Technology Innovation Based on CiteSpace," IJERPH, MDPI, vol. 19(20), pages 1-26, October.
    9. María del Carmen Galera-Quiles & Laura Piedra-Muñoz & Emilio Galdeano-Gómez & Angel Carreño-Ortega, 2021. "A Review of Eco-Innovations and Exports Interrelationship, with Special Reference to International Agrifood Supply Chains," Sustainability, MDPI, vol. 13(3), pages 1-21, January.
    10. Yang Songling & Muhammad Ishtiaq & Muhammad Anwar & Hamid Ahmed, 2018. "The Role of Government Support in Sustainable Competitive Position and Firm Performance," Sustainability, MDPI, vol. 10(10), pages 1-17, September.
    11. 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.

    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. João Leitão & Sónia de Brito & Serena Cubico, 2019. "Eco-Innovation Influencers: Unveiling the Role of Lean Management Principles Adoption," Sustainability, MDPI, vol. 11(8), pages 1-27, April.
    2. Gotsch, Matthias & Kelnhofer, Anton & Jäger, Angela, 2019. "Environmental product innovations and the digital transformation of production: Analysing the influence that digitalising production has on generating environmental product innovations," Working Papers "Sustainability and Innovation" S07/2019, Fraunhofer Institute for Systems and Innovation Research (ISI).
    3. Faria, Lourenço Galvão Diniz & Andersen, Maj Munch, 2017. "Sectoral patterns versus firm-level heterogeneity - The dynamics of eco-innovation strategies in the automotive sector," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 266-281.
    4. Qiong Yao & Suzhen Zeng & Shibin Sheng & Shiyuan Gong, 2021. "Green innovation and brand equity: moderating effects of industrial institutions," Asia Pacific Journal of Management, Springer, vol. 38(2), pages 573-602, June.
    5. Russell Tatenda Munodawafa & Satirenjit Kaur Johl, 2019. "A Systematic Review of Eco-Innovation and Performance from the Resource-Based and Stakeholder Perspectives," Sustainability, MDPI, vol. 11(21), pages 1-23, November.
    6. Sanni, Maruf, 2018. "Drivers of eco-innovation in the manufacturing sector of Nigeria," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 303-314.
    7. 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.
    8. Eduardo Duque‐Grisales & Javier Aguilera‐Caracuel & Jaime Guerrero‐Villegas & Encarnación García‐Sánchez, 2020. "Does green innovation affect the financial performance of Multilatinas? The moderating role of ISO 14001 and R&D investment," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3286-3302, December.
    9. Peter S. Hofman & Constantin Blome & Martin C. Schleper & Nachiappan Subramanian, 2020. "Supply chain collaboration and eco‐innovations: An institutional perspective from China," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2734-2754, September.
    10. Valeria Costantini & Francesco Crespi & Alessandro Palma, 2015. "Characterizing the policy mix and its impact on eco-innovation in energy-efficient technologies," SEEDS Working Papers 1115, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Jun 2015.
    11. Jana Hojnik, 2017. "In Pursuit of Eco-innovation," UPP Monograph Series, University of Primorska Press, number 978-961-7023-53-4.
    12. Calvo, Nuria & Monje-Amor, Ariadna & Villarreal, Oskar, 2022. "When your value proposition is to improve others' energy efficiency: Analyzing the internationalization dilemma of eco-innovations in SMEs," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    13. Ghisetti, Claudia & Pontoni, Federico, 2015. "Investigating policy and R&D effects on environmental innovation: A meta-analysis," Ecological Economics, Elsevier, vol. 118(C), pages 57-66.
    14. Durán-Romero, Gemma & López, Ana M. & Beliaeva, Tatiana & Ferasso, Marcos & Garonne, Christophe & Jones, Paul, 2020. "Bridging the gap between circular economy and climate change mitigation policies through eco-innovations and Quintuple Helix Model," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    15. Magadán-Díaz, Marta & Sotiriadis, Marios & Rivas-García, Jesús, 2019. "Drivers of eco-innovation in the Spanish hospitality industry," MPRA Paper 94090, University Library of Munich, Germany.
    16. Antonioli, Davide & Mazzanti, Massimiliano, 2017. "Towards a green economy through innovations: The role of trade union involvement," Ecological Economics, Elsevier, vol. 131(C), pages 286-299.
    17. Siying Long & Zhongju Liao, 2021. "Are fiscal policy incentives effective in stimulating firms' eco‐product innovation? The moderating role of dynamic capabilities," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3095-3104, November.
    18. Ying, Ying & Wang, Shixiang & Liu, Yang, 2022. "Make bricks without straw: Eco-innovation for resource-constrained firms in emerging markets," Technovation, Elsevier, vol. 114(C).
    19. Zon-Yau Lee & Mei-Tai Chu & Shiuann-Shuoh Chen & Chih-Hung Tsai, 2018. "Identifying Comprehensive Key Criteria of Sustainable Development for Traditional Manufacturing in Taiwan," Sustainability, MDPI, vol. 10(9), pages 1-19, September.
    20. Dewick, Paul & Maytorena-Sanchez, Eunice & Winch, Graham, 2019. "Regulation and regenerative eco-innovation: the case of extracted materials in the UK," Ecological Economics, Elsevier, vol. 160(C), pages 38-51.

    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:gam:jsusta:v:9:y:2017:i:11:p:1980-:d:117012. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.