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Environmental policy vs. Environmental innovation: An examination of policies disclosure on sustainable development from stakeholder theory perspective

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  • Abdul Waheed
  • Muhammad Shahid Khan
  • Muhammad Akib Warraich
  • Mehwish Asghar Ali

Abstract

Studying environmental policy (EnP) and environmental innovation (EnI) is a crucial domain for addressing global challenges such as climate change, resource depletion, and pollution. It equips the corporates with the knowledge and tools to develop effective strategies, regulations, and technological advancements that can mitigate environmental impact and promote sustainable practices for the benefit of current and future generations. This study attempts to uncover the influence of both EnP and EnI toward sustainable development (SD) within three dimensions, that is, social aspect, economic aspect, and environmental aspect from Chinese multinational enterprises (MNEs). A total of 723 documents were considered for data analysis using the SEM method and SmartPLS tool. The outcomes of the study are found interesting and fruitful where firstly a positive connection between EnP and SD was affirmed within Chinese MNEs. Second, the study found a positive nexus between EnI and SD, respectively. The findings highlight the insights by demonstrating EnP and EnI can help attain ultimate output and can strengthen SD of the Chinese MNEs. Additionally, this study offers several thought‐provoking and useful managerial recommendations as well as implications for both theoretical and managerial issues. Moreover, some possible opportunities are reported for future researchers by assuming the current flaws to carry out more research both within the Chinese market and rest of the regions, worldwide.

Suggested Citation

  • Abdul Waheed & Muhammad Shahid Khan & Muhammad Akib Warraich & Mehwish Asghar Ali, 2024. "Environmental policy vs. Environmental innovation: An examination of policies disclosure on sustainable development from stakeholder theory perspective," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(3), pages 2506-2516, June.
    • Handle: RePEc:wly:sustdv:v:32:y:2024:i:3:p:2506-2516
    DOI: 10.1002/sd.2782
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    2. Shuhui Jiang & Kang Chen, 2024. "Multidirectional analysis for sustainable development: An examination of sustainable policies, corporate social responsibility, and organizational performance," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(5), pages 4385-4396, October.
    3. Yi Yu, 2024. "Cultivating sustainable development in corporate internal matters: Nexus among high‐performance work systems, creativity, and impersonal trust from normative stakeholder theory," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(6), pages 7356-7366, December.
    4. Yuchi Zhang, 2024. "A path to sustainable development of agri‐industries: Analysis of agriculture 5.0 versus industry 5.0 using stakeholder theory with moderation of environmental policy," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(5), pages 4829-4843, October.
    5. Zhongju Liao & Yuhan Wu, 2025. "Formal institutions, informal institutions, and firms' environmental innovation: An application of the fuzzy set qualitative comparative analysis method," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(1), pages 668-680, February.
    6. Yanqin Zeng & Sotaro Katsumata & Xi Li & Qingyu Zhang, 2025. "Supplier–buyer (in)congruence in environmental management accounting for sustainable development in the context of Japan," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(1), pages 84-99, February.
    7. Lei Chen & Sikandar Ali Qalati & Mingyue Fan, 2025. "Effects of sustainable innovation on stakeholder engagement and societal impacts: The mediating role of stakeholder engagement and the moderating role of anticipatory governance," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(2), pages 2406-2428, April.

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