Profiling potential green electricity tariff adopters: green consumerism as an environmental policy tool?

Green electricity tariffs are one means by which green consumers can contribute to a more sustainable future. This paper profiles potential adopters of green electricity tariffs. Potential adoption is measured in terms of respondents' willingness to pay a premium for green energy in a national survey of the UK population. Hypotheses based principally on the cognitive–behavioural literature on green consumerism and green energy markets are developed. These are tested using a broad range of variables, which are grouped into three categories (demographic, attitudinal and behavioural). Consistent with past research, the empirical analyses find that attitudinal variables best characterize potential adopters. Further, potential adopters are found to have higher income, be better informed with respect to energy matters, show concern for the environment and believe that individual actions can make a difference to environmental decay. The implications of these findings for marketing and environmental policy are explored. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.     

How do firms achieve sustainability through green innovation under external pressures of environmental regulation and market turbulence?

Analyses in the fields of environmental and innovation research have hindered our understanding of the real effects of external drivers of firms' green innovation and sustainability behaviors on financial performance. This study compares the ways in which two different external factors drive firms to be green innovative: environmental regulation and market turbulence. By dividing green innovation into green process innovation and green product innovation, we propose that environmental regulation increases financial performance mainly through green process innovation rather than through green product innovation, and market turbulence affects financial performance mainly through green product innovation rather than through green process innovation. The results of an empirical analysis based on a mediation model and panel data on 472 Chinese listed firms for 2006–2017 lend support to our hypotheses. Our study contributes to the green innovation management and sustainability literature by offering a holistic framework for examining how firms pursue green innovation and sustainability in response to two different forms of external pressure.     

Can adopting ambitious environmental sustainability initiatives lead to business failures? An analytical framework

Drawing on environmental sustainability orientation and business failure literature, we examined a thought‐provoking question: “Can adopting ambitious environmental sustainability initiatives lead to business failures and under what conditions is this more likely?” To address this question, we developed an analytical framework that provides new insights into how voluntary environmental initiatives affect the business environment and firm competitiveness. This paper also yields new insights on the features that emerge at adopting environmental initiatives–business failure nexus: from greening to growing, from greening to sustaining, from greening to constraining, and from greening to collapsing. Accordingly, the study accounts for the conditions under sustainability initiatives, and a variety of complex contextual factors are likely to culminate in closures of small and medium‐sized enterprises (SMEs). Although many top executives, entrepreneurs, and managers view implementation of environmental initiatives as tantamount to superior firm performance, the paper highlighted the effects of resource constraints and vulnerabilities of SMEs and new firms during the early stage of development, and therefore, pursuing aggressive green initiatives could minimize their life chances. Implications for scholars and practising managers are discussed.     

HR managers and environmental sustainability: strategic leaders or passive observers?

In this paper, we explore the challenges posed to, and reactions of, human resource (HR) managers by the concept of environmental sustainability. From interviews with 14 New Zealand HR managers, we explore three related aspects of morality identified by Fineman: private, conventional, and enacted. Findings indicate that while the HR managers note a private position of environmental concern, they take a passive approach to environmental sustainability within their organizations. We note that this passive position is not without potentially adverse effects in relation to the role of HR as a strategic partner and for the advancement of environmental sustainability within organizations.     

Forecasting commodity prices out-of-sample: Can technical indicators help?

Economic variables are often used for forecasting commodity prices, but technical indicators have received much less attention in the literature. This paper demonstrates the predictability of commodity price changes using many technical indicators. Technical indicators are stronger predictors than economic indicators, and their forecasting performances are not affected by the problems of data mining or time changes. An investor with mean–variance preference receives utility gains of between 104.4 and 185.5 basis points from using technical indicators. Further analysis shows that technical indicators also perform better than economic variables for forecasting the density of commodity price changes.     

Sustainable financing practices through green bonds: What affects the funding size?

Financing through the supply‐driven green bonds market has significantly surged in recent years. In this paper, we examine the factors influencing the size of financing though green bond supply, using cross‐section OLS regressions on a global dataset for 8 years (2010–2017) sourced from Bloomberg. We consider a set of tridimensional factors: bond characteristics, issuer characteristics, and market characteristics and examine their effects on issue size. Alongside whole sample estimation, we produce year‐wise estimations to realize the evolution and persistence of the effects over time. We then produce estimates across rating grades of the bonds. Finally, we carry Blinder–Oaxaca decomposition to see if average issue size has significantly changed over time and whether the factors considered can explain the difference. We find a large number of factors affecting issue size asymmetrically; however, many of the effects do not persist over time and are heterogeneous across rating grades. In contrast to the aggregate market trend, we find no evidence of increases in average issue size in the recent year. Furthermore, the average financing size is found significantly lower for high‐grade bonds. The paper provides a basis for encouraging green bond supply, particularly considering the rating of the bonds and the issuers.     

Entrepreneurial orientation,environmental sustainability and new venture performance: Does stakeholder integration matter?

Previous research has theorised that the link between entrepreneurial orientation (EO) and performance is mediated by environmental sustainability orientation (ESO). However, firm‐level factors that may moderate this relationship are lacking. This paper attempts to fill this gap by examining how and when EO enhances new venture performance by considering ESO as mediator and stakeholder integration as an important contingent factor. Using primary data obtained from 242 chief executive officers/entrepreneurs, it was found that the indirect relationship between EO and new venture performance is strengthened at high levels of stakeholder integration. Theoretical and practical implications are discussed.     

Sustaining the sustainable development: How do firms turn government green subsidies into financial performance through green innovation?

The impact of government green subsidies on firms' green innovation behaviors and sustainable development has been recognized in the existing literature, but the deep relationship remains poorly understood. This study aims to examine the mechanism of how government green subsidies influence firms' financial performance via green innovation and how the mediating effect varies under different contingent conditions. Empirical results based on data of Chinese listed companies between 2006 and 2018 reveal that green subsidies have positive effects on green process and product innovation, but only green product innovation can rise higher financial performance, which further verifies that green subsidies positively influence financial performance through green product innovation rather than green process innovation. In addition, both higher absorptive capacity and higher market turbulence strengthen the indirect effect of green subsidies on firms' financial performance via green product innovation. Our study provides useful implications for enterprises by revealing the influence mechanism of green subsidies on financial performance through green innovation under different leveraging levels of internal and external conditions. It also provides basis for the government to formulate relevant environmental policies.     

The dynamics of US inflation: Can monetary policy explain the changes?

We investigate the relationship between monetary policy and inflation dynamics in the US using a medium scale structural model. The specification is estimated with Bayesian techniques and fits the data reasonably well. Policy shocks account for a part of the decline in inflation volatility; they have been less effective in triggering inflation responses over time and qualitatively account for the rise and fall in the level of inflation. A number of structural parameter variations contribute to these patterns.     

Contrasting Burns and Bass: Does the transactional‐transformational paradigm live up to Burns' philosophy of transforming leadership?

Both proponents and critics view the transactional‐transformational paradigm (Bass, 1997, 1998) as the brainchild of Burns' (1978) philosophy of transforming leadership. However, Burns (2003) has criticized the paradigm's narrow managerialist orientation and the claim that it is uniformly applicable to any culture and organization. In this article, I first summarize and articulate Burns' (1978, 2003) and Bass' (1985, 1998) approaches toward leadership, then compare them by using a new four‐dimensional framework. Extending previous research (Yukl, 2006), the framework represents a useful tool for detecting the commonalities and differences between leadership theories with respect to the core dimensions, categories, and aspects of leadership. My inspection indicates that Burns' and Bass' conceptions stem from disparate contexts and differ in their applicability. Thus, Burns' (1978) ideas stem from political movements ideally characterized by mutual quest for shared meaning and active collaboration between leaders and followers. Conversely, Bass' (1985) approach springs from military training in which leaders transfer existing knowledge to followers and stimulate their activity by using a variety of tools from inspirational motivation to individualized consideration. This study has important practical implications as it delineates the boundary conditions of the transactional‐transformational paradigm and warns against its uncritical adoption in incongruent leadership contexts.     

Green innovation to respond to environmental regulation: How external knowledge adoption and green absorptive capacity matter?

Although environmental regulations have been considered as important forces of conducting green innovation, how and under what conditions they affect green innovation are still unclear. Drawing from institutional theory, this study used survey data from 237 manufacturing firms in China to investigate how two dimensions of environmental regulations (i.e., command and control regulation and market‐based regulation) affect green product innovation and green process innovation. Further, this article examined the mediating role of external knowledge adoption and the moderating role of green absorptive capacity. Our results indicate that both command and control regulation and market‐based regulation have positive influences on external knowledge adoption. External knowledge adoption fully mediates these positive relationships. In addition, green absorptive capacity only strengthens the positive impact of market‐based regulation on external knowledge adoption. Our study contributes to institutional theory and green innovation literature.     

Circular economy,the transition of an incumbent focal firm: How to successfully reconcile environmental and economic sustainability?

Circular economy (CE) has garnered increasing attention in political circles and practitioner literature thanks to its potential to overcome the harmful consequences of linear patterns of growth. Nonetheless, the adoption of sustainable practices entails a holistic approach requiring businesses to make significant changes to their production, technologies and stakeholder management. These challenges resulted in limited progress in terms of the practical implementation of CE. This paper addresses the need for more literature focused on the pragmatic aspects of applying this paradigm to incumbent firms. The author presents the journey that Lucart S.p.A., a major European tissue paper manufacturer, has undertaken between 2014 and 2020 to apply CE principles to its practices. Insights from the transformation process, reconstructed through interviews with the firm's management and environmental impact data, suggest that to succeed it takes innovating (plants, products and marketing strategies) and setting up supply chains that reconcile environmental and economic sustainability.     

“Why did I do this?”: Understanding leadership behavior through a dynamic five‐factor model of leadership

Leadership theories referring to complex adaptive system theory (CAS) describe leadership as a dynamic process of interdependent, cooperating agents. However, research on leadership behavior focuses mainly on the leader as an influencing, active agent. This article offers a different perspective by focusing on factors that influence leadership behavior. A dynamic five‐factor model of leadership is introduced, which identifies (1) the leader's individual competence, (2) the group, (3) the organization, (4) the context, and (5) the immediate situation as all influencing factors on leadership behavior. To address the problem of the procedural nature of leadership behavior, the dynamic five‐factor model is combined with a scenario‐based approach. The scenario approach focuses on situational developments in a given context, whereby a previous situation influences a leader's behavior in the subsequent situation. By integrating the dynamic five‐factor model into a scenario approach, one can understand a leader's behavior in its procedural nature. The practical usability of the dynamic five‐factor model and the scenario approach was assessed in a leadership development program with 81 military officers. Structured feedback from participants indicated that the model and the approach were perceived as helpful and relevant for understanding leadership behavior.     

Stakeholder pressure for sustainability: Can ‘innovative capabilities’ explain the idiosyncratic response in the manufacturing firms?

This study explores role of innovative capabilities in determining a manufacturing firm's response to stakeholder pressure for adopting sustainable practices. Drawing on the theory of conservatism, we delineate that the firm's response is idiosyncratic and undergirded in the nature of its innovative capabilities. Our empirical investigation reveals that the response to the stakeholder pressure is mediated by the nature of the firm's innovative capabilities. Indian manufacturing firms are identified as unit of analysis for this study. The individual manufacturing facilities implement the environmental practices. The findings suggest that the manufacturing firm's exposure to exploitative/exploratory innovative capabilities triggers sustainable behaviours with ephemeral focus and enduring focus. Further, the exploratory/exploitative innovation is capable of explaining idiosyncratic behaviour for the firms' sustainability practices adoption. The findings delineate, with analysis, that unlike China, regulatory stakeholder pressures in India inhibit the adoption of sustainable practices with enduring focus in manufacturing firms.     

Can child care policy encourage employment and fertility?: Evidence from a structural model

We develop a structural model of female employment and fertility which accounts for intertemporal feedback effects between these two outcomes. To identify the effect of financial incentives on employment and fertility we exploit variation in the tax and transfer system, which differs by employment state and number of children. Specifically, we simulate in detail the effects of the tax and transfer system, including child care costs. The model provides estimates of the structural preferences of women that can be used to study the effect of various policy reforms. Results show that increasing child care subsidies, conditional on employment, increases the labor supply of all women as well as the fertility rates of the childless and highly educated women.