IDEAS home Printed from
   My bibliography  Save this paper

The financial performance of green prospector firms: a contingent approach


  • Javier Aguilera-Caracuel

    () (Department of Business Organization and Marketing, Universidad Pablo de Olavide)

  • Natalia Ortiz-de-Mandojana

    (Department of Management, Universidad de las Islas Baleares.)


Innovation is central to improving economic productivity, human well-being and environmental conservation. Firm-level green innovation includes technological improvements that save energy, prevent pollution, or make it possible to recycle waste. Such innovation also includes green product design and corporate environmental management. This type of innovation contributes to business sustainability as it potentially has a positive effect on the firms’ financial, social and environmental outcomes. However, the specific effect of green innovation on firms’ outcomes can be highly influenced by the context in which firms develops their activities. Using a contingent approach and employing a sample of 88 green prospector firms from 14 different countries, we observe that the intensity of green innovation is positively related to firm profitability. We also show that stringent environmental regulations keep firms from taking the financial advantage of the benefits of green innovation. However, the environmental normative conditions in a country do not have any significant impact on the way firms take advantage of green innovation to increase their level of financial performance. Finally, we also discuss implications for academia, managers and policy-makers.

Suggested Citation

  • Javier Aguilera-Caracuel & Natalia Ortiz-de-Mandojana, 2013. "The financial performance of green prospector firms: a contingent approach," Working Papers 13.02, Universidad Pablo de Olavide, Department of Business Organization and Marketing (former Department of Business Administration).
  • Handle: RePEc:pab:wpboam:13.02

    Download full text from publisher

    File URL:
    File Function: First version, 2013
    Download Restriction: no

    More about this item


    Green innovation; environmental regulations; environmental normative dimension; contingent approach; prospector firms.;

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pab:wpboam:13.02. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Publicación Digital - UPO). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.