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Why firms go green and how green impacts financial and innovation performance differently: An awareness-motivation-capability perspective

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  • Chengli Shu

    (Xi’an Jiaotong University
    University of Adelaide)

  • Mengli Zhao

    (Xi’an Jiaotong University)

  • Jinxin Liu

    (Xi’an Jiaotong University)

  • Wendy Lindsay

    (University of Adelaide)

Abstract

Based on the awareness-motivation-capability framework, this research examines how firm-level factors (environmental scanning and organizational slack) individually and collectively interact with institutional factors (government support and industry competition) to influence a firm’s adoption of green management. Moreover, we distinguish the impacts of green management on financial performance and innovation performance. The empirical findings reveal that environmental scanning and organizational slack facilitate green management, government support strengthens these positive relationships, and industry competition attenuates the effect of environmental scanning on green management. In addition, green management enhances innovation performance to a greater extent than financial performance. This research provides an integrative framework illustrating how firm-level factors and institutional environments influence green decisions and proposes that green management may impact firm performance measures in distinctive ways.

Suggested Citation

  • Chengli Shu & Mengli Zhao & Jinxin Liu & Wendy Lindsay, 2020. "Why firms go green and how green impacts financial and innovation performance differently: An awareness-motivation-capability perspective," Asia Pacific Journal of Management, Springer, vol. 37(3), pages 795-821, September.
    • Handle: RePEc:kap:asiapa:v:37:y:2020:i:3:d:10.1007_s10490-018-9630-8
    DOI: 10.1007/s10490-018-9630-8
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    Cited by:

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    5. Gabriel Cachón‐Rodríguez & Alicia Blanco‐González & Camilo Prado‐Román & Francisco Diez‐Martin, 2021. "Sustainability actions, employee loyalty, and the awareness: The mediating effect of organization legitimacy," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(7), pages 1730-1739, October.

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