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Green and competitive? An empirical test of the mediating role of environmental innovation strategy

  • Eiadat, Yousef
  • Kelly, Aidan
  • Roche, Frank
  • Eyadat, Hussein
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    This study examines links between the adoption of an environmental innovation strategy and firms' business performance. It illustrates ways in which an environmental innovation strategy is itself influenced by significant environmental pressures, including government environmental regulation, perceived importance of stakeholder pressures, and managerial environmental concerns. Survey data from the chemical industry in Jordan show that (1) environmental innovation strategy is associated with improved perceived firms' business performance; (2) the adoption of an environmental innovation strategy is influenced by certain environmental pressure forces, and (3) environmental innovation strategy fully mediates between certain environmental pressure forces and firms' business performance.

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    File URL: http://www.sciencedirect.com/science/article/pii/S1090951607000892
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    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 43 (2008)
    Issue (Month): 2 (March)
    Pages: 131-145

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    Handle: RePEc:eee:worbus:v:43:y:2008:i:2:p:131-145
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    1. Afsah, Shakeb & Laplante, Benoit & Wheeler, David, 1996. "Controlling industrial pollution : a new paradigm," Policy Research Working Paper Series 1672, The World Bank.
    2. Christainsen, G.B. & Tietenberg, T.H., 1985. "Distributional and macroeconomic aspects of environmental policy," Handbook of Natural Resource and Energy Economics, in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 1, chapter 9, pages 345-393 Elsevier.
    3. McCain, Roger A, 1978. "Endogenous Bias in Technical Progress and Environmental Policy," American Economic Review, American Economic Association, vol. 68(4), pages 538-46, September.
    4. Adam B. Jaffe et al., 1995. "Environmental Regulation and the Competitiveness of U.S. Manufacturing: What Does the Evidence Tell Us?," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 132-163, March.
    5. Covin, Jeffrey G. & Slevin, Dennis P. & Heeley, Michael B., 2001. "Strategic decision making in an intuitive vs. technocratic mode: structural and environmental considerations," Journal of Business Research, Elsevier, vol. 52(1), pages 51-67, April.
    6. Dasgupta, Susmita & Hettige, Hemamala & Wheeler, David, 2000. "What Improves Environmental Compliance? Evidence from Mexican Industry," Journal of Environmental Economics and Management, Elsevier, vol. 39(1), pages 39-66, January.
    7. Karen Palmer & Wallace E. Oates & Paul R. Portney, 1995. "Tightening Environmental Standards: The Benefit-Cost or the No-Cost Paradigm?," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 119-132, Fall.
    8. Brooks, Nancy & Sethi, Rajiv, 1997. "The Distribution of Pollution: Community Characteristics and Exposure to Air Toxics," Journal of Environmental Economics and Management, Elsevier, vol. 32(2), pages 233-250, February.
    9. Stephen Fineman, 1996. "Green Stakeholders: Industry Interpretations And Response," Journal of Management Studies, Wiley Blackwell, vol. 33(6), pages 715-730, November.
    10. Faucheux, Sylvie & Nicolai, Isabelle, 1998. "Environmental technological change and governance in sustainable development policy," Ecological Economics, Elsevier, vol. 27(3), pages 243-256, December.
    11. Michael E. Porter & Claas van der Linde, 1995. "Toward a New Conception of the Environment-Competitiveness Relationship," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 97-118, Fall.
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