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Exploration and Exploitation as Antecedents of Environmental Performance: The Moderating Effect of Technological Dynamism and Firm Size

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  • Gun Jea Yu

    (College of Business Administration, Hongik University, 94 Wausan-ro, Mapo-gu, Seoul 04066, Korea)

  • Kyoung-Min Kwon

    (College of Business Administration, Hongik University, 94 Wausan-ro, Mapo-gu, Seoul 04066, Korea)

  • Joonkyum Lee

    (Sogang Business School, Sogang University, 35 Baekbeom-ro, Mapo-gu, Seoul 04107, Korea)

  • Hojin Jung

    (College of Business Administration, Hongik University, 94 Wausan-ro, Mapo-gu, Seoul 04066, Korea)

Abstract

This study aims to expand our understanding of environmental performance by adopting exploration and exploitation concepts, which are key types of firm innovation. We reveal exploration and exploitation as two important antecedents of proactive and reactive environmental performance. We also identify the conditions under which the distinct effects of these two types of innovation are moderated. Using a sample of 2060 firm-year observations over a 12-year period in various industries, we find that firm exploration positively affects proactive environmental performance, whereas firm exploitation positively influences reactive environmental performance. Furthermore, we find that the positive effect of exploitation on reactive environmental performance intensifies when technological dynamism is high, and the positive effect of exploration on proactive environmental performance strengthens when a firm is large.

Suggested Citation

  • Gun Jea Yu & Kyoung-Min Kwon & Joonkyum Lee & Hojin Jung, 2016. "Exploration and Exploitation as Antecedents of Environmental Performance: The Moderating Effect of Technological Dynamism and Firm Size," Sustainability, MDPI, vol. 8(3), pages 1-15, February.
    • Handle: RePEc:gam:jsusta:v:8:y:2016:i:3:p:200-:d:64412
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