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Strategic Orientation, Environmental Management Systems, and Eco-Innovation: Investigating the Moderating Effects of Absorptive Capacity

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  • Chin-Hung Tseng

    (Department of Environmental Science and Engineering, Tunghai University, No.1727, Sec.4, Taiwan Boulevard, Xitun District, Taichung 40704, Taiwan)

  • Kuo-Hsiung Chang

    (Department of International Business, Tunghai University, No.1727, Sec.4, Taiwan Boulevard, Xitun District, Taichung 40704, Taiwan)

  • Ho-Wen Chen

    (Department of Environmental Science and Engineering, Tunghai University, No.1727, Sec.4, Taiwan Boulevard, Xitun District, Taichung 40704, Taiwan)

Abstract

Environmental management studies have proposed that firms can achieve substantial cost advantages over competitors and enhance their competitive positions by implementing an environmental management system (EMS). This study further investigates strategic orientation (customer, competitor, and innovation orientation) and focuses on the effect of strategic orientation on EMSs and eco-innovation; it also examines the mediating role of EMSs in the relationship between strategic orientation and eco-innovation. Furthermore, this study investigates the moderating role of absorptive capacity in the relationship between strategic orientation and EMSs. Reliability and validity analyses of a sample of 142 respondents indicated that the study design was effective, consistent, and reliable. The findings indicate that (1) strategic orientation (competitor and innovation orientation) positively influences EMSs, (2) EMSs positively influence eco-innovation, (3) absorptive capacity-enhancing strategic orientation positively influences EMSs, and (4) EMS intermediary strategic orientation positively influences eco-innovation. This study contributes to the theoretical understanding of why some firms exhibit greater proactivity in EMSs than others do.

Suggested Citation

  • Chin-Hung Tseng & Kuo-Hsiung Chang & Ho-Wen Chen, 2021. "Strategic Orientation, Environmental Management Systems, and Eco-Innovation: Investigating the Moderating Effects of Absorptive Capacity," Sustainability, MDPI, vol. 13(21), pages 1-14, November.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:21:p:12147-:d:671422
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    1. Elizabeth Emperatriz García-Salirrosas & Ángel Acevedo-Duque, 2022. "PERVAINCONSA Scale to Measure the Consumer Behavior of Online Stores of MSMEs Engaged in the Sale of Clothing," Sustainability, MDPI, vol. 14(5), pages 1-16, February.
    2. Marvello Yang & Norizan Jaafar & Abdullah Al Mamun & Anas A. Salameh & Noorshella Che Nawi, 2022. "Modelling the significance of strategic orientation for competitive advantage and economic sustainability: the use of hybrid SEM–neural network analysis," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-28, December.
    3. Li, Lingjia & Shan, Shuo & Dai, Jing & Che, Wen & Shou, Yongyi, 2022. "The impact of green supply chain management on green innovation: A meta-analysis from the inter-organizational learning perspective," International Journal of Production Economics, Elsevier, vol. 250(C).

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