Can National Innovation Substitute The Role of Environmental Regulation to Improve Corporate Environmental Performance?
AbstractEnvironmental regulatory uncertainty has attracted extraordinary attention among scholars, managers, policy-makers and other members of society. Despite this increasing attention, the impact of environmental regulatory uncertainty on the environmental approaches of firms is difficult to estimate in the business context. Considering that environmental regulations are not the only mechanism enabling firms to develop proactive environmental management practices, we show that the national institutional profile delineates a firm’s environmental progress. Specifically, we argue that the national level of innovation is an essential institutional condition that can encourage firms to develop advanced environmental approaches and even overcoming the effect of environmental regulatory uncertainty on corporate environmental performance. Using a sample of 1,912 firms from 19 countries, we developed different scenarios that combine the effects of environmental regulatory uncertainty and the national level of innovation. Knowledge of these different situations illustrates how managers cope with environmental regulatory uncertainty.
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Bibliographic InfoPaper provided by Faculty of Economics and Business (University of Granada) in its series FEG Working Paper Series with number 05/11.
Length: 24 pages
Date of creation: 01 Oct 2011
Date of revision:
Environmental Regulatory Uncertainty; National Level of Innovation; Corporate Environmental Performance;
Find related papers by JEL classification:
- M1 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-15 (All new papers)
- NEP-CSE-2011-10-15 (Economics of Strategic Management)
- NEP-ENV-2011-10-15 (Environmental Economics)
- NEP-INO-2011-10-15 (Innovation)
- NEP-REG-2011-10-15 (Regulation)
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