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Unpacking the Mechanisms of Network Embeddedness for Low-Carbon Innovation in Chinese Enterprises: A Dynamic and Cognitive Theory Perspective

Author

Listed:
  • Yuguo Jiang

    (School of Business, Sichuan Normal University, Chengdu 610101, China)

  • Enock Mintah Ampaw

    (Applied Mathematics Department, Koforidua Technical University, Koforidua KF 981, Ghana)

  • Feifei Xu

    (School of Business, Sichuan Normal University, Chengdu 610101, China)

Abstract

In the context of low-carbon economies, there is a clarion call for enterprises to change traditional economic management styles in order to achieve optimal gains. Against this background, the mechanism to improve low-carbon innovation capabilities of enterprises has become the holy grail for top management teams. Based on the social network, dynamic ability and upper echelon theories, this study explores the impact of network embeddedness on low-carbon innovation of enterprises and further analyzes the intermediary role of low-carbon dynamic abilities and the moderating role of executives’ low-carbon cognition. To achieve the objectives of this study, a sample of 386 enterprises in China were selected for the study. The results show that (1) Both structural embeddedness and relational embeddedness have significant positive effects on enterprises low-carbon innovation; (2) A low-carbon dynamic ability functions as a partially mediated factor between structural embeddedness and enterprise low-carbon innovation; (3) Low-carbon dynamic capacity plays a complete intermediary role between relational embeddedness and enterprise low-carbon innovation; (4) Executives’ low-carbon cognition moderates the relationship between low-carbon dynamic ability and low carbon innovation of enterprises. That is, the stronger the executives’ low-carbon cognition, the stronger the positive impact of dynamic ability on enterprise low-carbon innovation and vice versa. This study expands research in social network theory and the low-carbon innovation of enterprises. Furthermore, this study provides a solid theoretical basis for enterprises to effectively carry out low-carbon innovation while providing a solid reference for enterprises to improve their low-carbon innovation aspirations.

Suggested Citation

  • Yuguo Jiang & Enock Mintah Ampaw & Feifei Xu, 2023. "Unpacking the Mechanisms of Network Embeddedness for Low-Carbon Innovation in Chinese Enterprises: A Dynamic and Cognitive Theory Perspective," Sustainability, MDPI, vol. 15(15), pages 1-17, July.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:15:p:11498-:d:1201975
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    References listed on IDEAS

    as
    1. Yuguo Jiang & Weide Chun & Ye Yang, 2018. "The Effects of External Relations Network on Low-Carbon Technology Innovation: Based on the Study of Knowledge Absorptive Capacity," Sustainability, MDPI, vol. 10(1), pages 1-14, January.
    2. Xie, Xuemei & Huo, Jiage & Zou, Hailiang, 2019. "Green process innovation, green product innovation, and corporate financial performance: A content analysis method," Journal of Business Research, Elsevier, vol. 101(C), pages 697-706.
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    5. Ching-Hsun Chang, 2011. "The Influence of Corporate Environmental Ethics on Competitive Advantage: The Mediation Role of Green Innovation," Journal of Business Ethics, Springer, vol. 104(3), pages 361-370, December.
    6. Shi-Zheng Huang & Ka Yin Chau & Fengsheng Chien & Huawen Shen, 2020. "The Impact of Startups’ Dual Learning on Their Green Innovation Capability: The Effects of Business Executives’ Environmental Awareness and Environmental Regulations," Sustainability, MDPI, vol. 12(16), pages 1-17, August.
    7. Uyarra, Elvira & Shapira, Philip & Harding, Alan, 2016. "Low carbon innovation and enterprise growth in the UK: Challenges of a place-blind policy mix," Technological Forecasting and Social Change, Elsevier, vol. 103(C), pages 264-272.
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