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CEOs' regulatory focus, slack resources and firms' environmental innovation

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  • Zhongju Liao
  • Siying Long

Abstract

To synthesize the literature on upper echelons theory, regulatory focus theory and the resource‐based view, this study examined the relationship of CEOs' regulatory focus, slack resources and firms' environmental innovation. Through the investigation of 191 manufacturing firms in China, we found that a CEO's promotion focus had a positive influence both on the firm's environmental processes and on product innovation, while a CEO's prevention focus had a negative influence. In addition, slack resources moderated the influence of the CEO's promotion focus on a firm's environmental process innovation in a positive way, while also positively moderating the influence of a CEO's prevention focus on a firm's environmental product innovation. Our results indicated that firms could deploy resources based on the CEOs' regulatory focus to facilitate firms' environmental innovation.

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  • Zhongju Liao & Siying Long, 2018. "CEOs' regulatory focus, slack resources and firms' environmental innovation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(5), pages 981-990, September.
    • Handle: RePEc:wly:corsem:v:25:y:2018:i:5:p:981-990
    DOI: 10.1002/csr.1514
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    2. Jinliang Chen & Kangkang Yu & Jiaowei Gong, 2022. "Supply chain slack and sustainable development performance: The “fit–adjust” effect of objective and perceived environmental uncertainties," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1595-1604, September.
    3. Jinxia Jiao & ChenGuang Liu & Yan Xu & Zirong Hao, 2022. "Effects of strategic flexibility and organizational slack on the relationship between green operational practices adoption and firm performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(3), pages 561-577, May.
    4. Murthy, Sidharth & Gul, Ferdinand A. & Yao, Jun, 2023. "CEO regulatory focus and management earnings forecasts," Journal of Contemporary Accounting and Economics, Elsevier, vol. 19(3).
    5. Siying Long & Zhongju Liao, 2021. "Are fiscal policy incentives effective in stimulating firms' eco‐product innovation? The moderating role of dynamic capabilities," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3095-3104, November.
    6. Feifei Yu & Dong Jiang & Teng Wang, 2022. "The impact of green innovation on manufacturing small and medium enterprises corporate social responsibility fulfillment: The moderating role of regional environmental regulation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(3), pages 712-727, May.
    7. Sher Jahan Khan & Amandeep Dhir & Vinit Parida & Armando Papa, 2021. "Past, present, and future of green product innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 4081-4106, December.
    8. Ching‐Hsun Chang, 2019. "Do green motives influence green product innovation? The mediating role of green value co‐creation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(2), pages 330-340, March.
    9. Chiu, Sana (Shih-chi) & Hoskisson, Robert E. & Tony Kong, Dejun & Li, Andrew & Shao, Ping, 2023. "Predicting primary and secondary stakeholder engagement: A CEO motivation-means contingency model," Journal of Business Research, Elsevier, vol. 160(C).
    10. Dayuan Li & Fei Tang & Lu Zhang, 2020. "Differential effects of voluntary environmental programs and mandatory regulations on corporate green innovation," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 103(3), pages 3437-3456, September.
    11. Shaham Saleem & Hafsa Bashir, 2024. "Environmental corporate social responsibility and green dynamic capability: The moderating role of slack resources," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 3379-3394, July.
    12. Zhou, Kuo & Luo, Haotian & Ye, Diyu & Tao, Yunqing, 2022. "The power of anti-corruption in environmental innovation: Evidence from a quasi-natural experiment in China," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    13. Umair Bin Yousaf & Muhammad Zubair Tauni & Imran Yousaf & Nancy Lixin Su, 2024. "Board competence and green innovation—Does external governance matter?," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3078-3102, May.

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