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Strategic orientations and environmental innovation

Author

Listed:
  • Li, Meiyi
  • Zhou, Yaqiong
  • Wei, Yuanyuan
  • Chen, Siyuan
  • Li, Xiaoyuan

Abstract

This study examines how competitive strategies influence green innovation performance using data from Chinese listed companies (2010–2022). Both cost leadership and differentiation strategies positively impact green innovation, but through different mechanisms. Differentiation works through enhanced absorptive capacity, while cost leadership affects innovation directly. Managerial environmental awareness strengthens these relationships, highlighting the importance of green cognition in strategy implementation. State-owned enterprises show stronger strategic effectiveness in green innovation than non-state-owned firms. Both strategic approaches are more effective in heavily polluting industries, suggesting environmental pressures catalyze focused innovation. The findings demonstrate that successful green innovation can be achieved through multiple strategic pathways when supported by appropriate organizational capabilities, management cognition, and institutional context.

Suggested Citation

  • Li, Meiyi & Zhou, Yaqiong & Wei, Yuanyuan & Chen, Siyuan & Li, Xiaoyuan, 2025. "Strategic orientations and environmental innovation," Finance Research Letters, Elsevier, vol. 86(PE).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pe:s1544612325019087
    DOI: 10.1016/j.frl.2025.108654
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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