Green process innovation and operational performance: The role of proactive environment strategy,technological capabilities,and organizational learning

With increase in the focus on environmental protection, firms are integrating sustainability issues in process and product innovations. Firms can contribute toward sustainability and also improve operational performance through green innovation practices. However, the adoption of green innovation practices depends on the proactivity of top managers toward environment management. In this paper, we study the relationships between proactive environment strategy, green process innovation (GPRI), and operational performance. Further, we examine the mediating effect of dynamic capabilities (DCs) (technological capabilities and organizational learning) between GPRI and operational performance. The proposed framework is tested by data collected from the Indian manufacturing industries and using partial least squares (PLS) technique. The findings demonstrate proactive environment strategy as an important antecedent for GPRI practices. Second, technological capabilities and organizational learning mediate between GPRI and operational performance. The results of the study are useful for managers in the manufacturing firms, who are interested to implement GPRI practices or who are in the early stage of implementing the GPRI practices.     

Green technology innovation: Anatomy of exploration processes from a learning perspective

This paper examines how established firms use their core competences to diversify their business by exploring and ultimately developing green technologies. In contrast to start‐ups dedicated to a green mission, diversifying into green markets by developing new products based on existing core competences has proven to be challenging. This is because the exploration processes to find a match between green technology opportunities and internal competences is complex and new to most established firms. This paper gains insights into exploration processes for green technologies and the learning modes and outcomes linked to these processes. We examined exploration processes at the microlevel in an embedded case study of an engineering firm using a combination of the “fireworks” innovation process model and organizational learning theory. First, we found that developing green technologies involves a long‐term exploratory process without guarantee of (quick) success and likely involves many exploration failures. Second, as exploration unfolds along multiple technology trajectories, learning occurs in individual exploration paths (on‐path), when new paths are pursued (path‐initiation), and when knowledge from one path is spilled over to subsequent paths (across‐paths). Third, to increase their chances for success, firms can increase the efficiency of exploration by fostering a failure‐friendly organizational culture, deliberately experimenting, and purposefully learning from failures.     

Green human resource management and the enablers of green organisational culture: Enhancing a firm's environmental performance for sustainable development

Scholars have shown that green human resource management (GHRM) practices enhance a firm's environmental performance. However, existing studies fail to explain how GHRM initiatives can enable a green organisational culture or how such a culture affects the environmental performance and sustainable development of the firm. This paper examines the relationship between GHRM practices, the enablers of green organisational culture, and a firm's environmental performance. We conduct a large‐scale survey of 204 employees at Chinese manufacturing firms. Our findings suggest that proenvironmental HRM practices including hiring, training, appraisal, and incentivisation support the development of the enablers of green organisational culture. We suggest the key enablers of green organisational culture include leadership emphasis, message credibility, peer involvement, and employee empowerment. Our paper contributes to HRM theory in terms of originality and utility of research by explaining that the enablers of green organisational culture positively mediate the relationship between GHRM practices and environmental performance. Managers are provided with a detailed understanding of the GHRM practices needed to enable an organisational culture of environmentally aware employees. Finally, we address potential implications of this work for teaching green organisational culture to future generations of responsible managers.     

High‐performance organizing,environmental management,and organizational performance: An evolutionary economics perspective

This study applies evolutionary economics reasoning to the green HRM context and examines whether and how environmental management routinization relates to organizational performance. In doing so, we introduce the concept of ecological routines, defined as deeply embedded, firm‐specific rules and procedures associated with organizing and practicing corporate environmental management that do not change very much from one iteration, period, or functional unit to another. We examine the extent to which ecological routines that encompass organizing (high‐performance organizing [HPO]) and practice routines of environmental sustainability relate to green decisions, green behaviors, and organizational performance. In a sample of 229 managers from 33 organizations in the environment‐sensitive industries of the United States, we find support for multilevel mediation of green decisions and green behaviors as well as interaction of HPO and environmental management practice routines. Implications for research and practice are discussed.     

Green supply chain practices and company performance in Portuguese manufacturing sector

Green supply chain management is an important organizational approach to reducing strain on the environment. Many companies are under pressure from customers, media, governments, and investors, among others, to implement green practices. This exploratory paper investigates the relationships between internal and external green practices of eight Portuguese companies from different industrial sectors and their impact on economic and environmental performance. The relationship was analyzed based on the data collected from 22 semi‐structured interviews with general managers, procurement and environmental/safety managers, and through secondary data collected from reports, websites and companies' internal documentation. The analysis identifies the most important green practices considered by managers, as well as the performance measures that are most appropriate and most widely used to evaluate the influence of green practices on corporate performance. A conceptual model was derived to assess the influence of green practices on focal company economic and environmental performance. The results support four of five propositions of this research, and it is possible to conclude that the companies believe that with the adoption of green supply chain practices, they can be more competitive in the market. Due to the scope of the green practices, the relationship between green practices and economic performance was inconclusive. Internal and external green supply chain practices contribute to improved environmental performance because for all companies, there is a positive relationship between green practices and environmental performance in terms of energy, water consumption, waste, and air emissions reduction.     

Environmental Policy in the Nordic Wood Product Industry: Insights Into Firms’ Strategies and Communication

The purpose of our study is to explore how companies operating in the Nordic wood products value chains currently use environmental performance measures in their environmental policy and communication with stakeholders. Apart from the regularly‐used environmental management certificates, the ability of wood material to store carbon and the use of sustainable forest management certificates open up interesting strategic options for firms in the implementation of their environmental policy. The primary was collected through thematic managerial interviews in 2011 from 37 companies in Finland, Sweden and Norway, of varying size, roles in the value chain, conditions for green business practices and exports. Forest certification and environmental management systems were frequently used, but managers did not always perceive them to be useful, particularly for raising environmental awareness at the final consumer level. Nevertheless, the general attitude towards using environmental performance measures was seen as positive. Companies with a business‐to‐business orientation were the most proactive in terms of environmental communication, whereas companies in consumer markets were more reactive. The key stakeholders targeted for environmental communication were value chain partners and the authorities, and only to a lesser degree employees and environmental non‐governmental organisations. The key strategic role of environmental management and communication appeared to be securing the firms against negative environmental claims. The Nordic wood industry could improve their communication if the strategic orientation is shifted from the forest certification to the use of generic eco‐labels, and most of all, to the adoption of quantitative measures like carbon footprints and environmental product declarations. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment.     

How to respond to competitors' green success for improving performance: The moderating role of organizational ambidexterity

With increasing environmental competitions between companies, there is a pressing need to explore how the environmental pressures from rivals influence focal firms' actions and the subsequent performance consequences. On the basis of social contagion theory and upper echelons theory, we examine whether firms respond to competitors' green success through green supplier integration, which further improves firm performance, and the moderating effect of organizational ambidexterity. The research explores hypothesized relationships adopting hierarchical regression analysis and bootstrapping method by collecting survey data from 206 Chinese manufacturers. Our findings suggest that competitors' green success positively influences green supplier integration. Green supplier integration mediates the impacts of competitors' green success on financial and environmental performance. In addition, the combined dimension of organizational ambidexterity plays a positive moderating role in the impacts of green supplier integration on financial and environmental performance. This study expands previous literature and managers' practices on green supply chain management.     

Strategic Organizational Change: Exploring the Roles of Environmental Structure,Internal Conscious Awareness and Knowledge*

ABSTRACT We argue that strategic organizational change is best viewed as a multidimensional phenomenon consisting of various degrees of environmental structure and internal conscious awareness. And, by combining this conceptualization of change with a model of organizational knowledge transfer developed by Nonaka and Takeuchi (1995 ), we gain a better understanding of the types of change strategies that firms will pursue, the processes they should use to implement these strategies and the likely performance outcomes from these strategies. Specifically, we suggest that the levels of tacit and explicit knowledge needed to implement the new strategies are key determinants of firm performance following strategic organizational change.     

Strategic entrepreneurship and competitive advantage of established firms: evidence from the digital TV industry

Although strategic entrepreneurship in established firms is recognized as a vital source of sustainable competitive advantage, this field has no clearly developed research paradigm. This study proposes a conceptual framework to investigate dimensions of strategic entrepreneurship and its function in sustainable competitive advantage of established firms in a modern volatile environment, through the lens of the dynamic capability view. By conducting a systematic literature review of previous research documents and considering conceptual interrelationships between strategic entrepreneurship and dynamic capabilities, we propose categories that comprise dimensions of a firm’s strategic entrepreneurship: environmental sensing, opportunity seizing, strategic flexibility, entrepreneurial orientation and organizational learning. We establish a conceptual framework of strategic entrepreneurship in which entrepreneurs’ managerial capabilities of environmental sensing, opportunity seizing, strategic flexibility and entrepreneurial orientation closely interact with organizational learning, thereby facilitating sustainable performance of established firms. Following empirical studies of established firms in the digital TV manufacturing industry, the proposed conceptual framework suggests that each dimension of strategic entrepreneurship plays a critical role in competitive advantage of firms. In addition, case study results indicate that a firm’s position and evolutionary path form antecedent factors influencing entrepreneurs’ managerial capabilities and organizational learning of established firms.     

Leveraging green HRM for firm performance: The joint effects of CEO environmental belief and external pollution severity and the mediating role of employee environmental commitment

The topic of green human resource management (HRM) has drawn increasing attention of HRM scholars in the past decade. Recent research has called for more studies to identify the antecedents of green HRM used in organizations and explore the mediating mechanisms through which green HRM is related to performance outcomes. This study represents an effort to address these research needs by examining the joint effects of chief executive officer (CEO) environmental belief and external pollution severity on the use of green HRM and testing the mediating role of employee environmental commitment in the relationship between green HRM and firm performance. Drawing upon data collected from multiple sources (i.e., survey data from chief executive officer (CEOs), chief financial officers (CFOs), HR managers and employees, and archival data from government statistics), we found that CEO's environmental belief is significantly related to the use of green HRM, especially for companies operating in locations with severer pollution. Green HRM in turn has a positive relationship with the firm's environmental and financial performances via employee commitment to the environment. The findings highlight the often-overlooked role of in the strategic HRM literature pertinent to environmental management and clarify the antecedents and influential mechanisms of green HRM at the firm level of analysis. We also discuss theoretical and practical implications in this study.     

Pursuing sustainable development through green entrepreneurship: An institutional perspective

Pursuing sustainable development through green entrepreneurship has been advocated, conceptualized, and empirically examined in the recent environmental management and entrepreneurship literature. However, green entrepreneurs are embedded in institutional environments that may discourage them from embracing sustainable development because of the “paradox of embedded agency.” How can a firm overcome the liability of such an agency issue and escape what has become known as a “green prison”? This study proposes that, because international venturing exposes firms to foreign institutions, it provides them with opportunities for institutional learning. Thus, we examine how international venturing influences green entrepreneurship which, in turn, impacts firm performance. Specifically, based on institutional theory, this study develops a firm-level green entrepreneurship framework with three dimensions: green initiatives (a firm's active adoption of green practices), received government green support (benefits that a firm gains from the government by adapting to governmental incentives, programs, and policies related to green practices), and green political influence (a firm's attempts to influence legislation that enacts laws, rules, and regulations related to green practices). The results obtained by analyzing 152 firms that engage in international venturing activities and 151 firms that do not show that international venturing is positively associated with green initiatives and government green support while these two factors further directly enhance firm performance and mediate the effects of international venturing on performance.     

Beyond managerial talent: ‘key group’ identification and differential compensation practices in multinational companies

With the maturation of strategic human resource management scholarship, there appears to be a greater call to move from monolithic workforce management to a more strategic and differentiated emphasis on employees with the greatest capacity to enhance competitive advantage. There has been little consideration in the literature as to whether organizations formally identify key groups of employees based on their impact on organizational learning and core competences. Using survey evidence from 260 multinational companies (MNCs), this paper explores the extent to which key groups of employees are formally recognized and whether they are subject to differential compensation practices. The results demonstrate that just in excess of half of these MNCs identify a key group. There was considerable differentiation in the compensation practices between these key groups, managers and the largest occupational group in the workforce. The results give rise to questions worthy of future investigation, namely whether the differentiated approaches used lead to improved performance outcomes.     

The Dynamics of Labour Flexibility: Relationships between Employment Type and Innovativeness

This paper investigates the relationship between flexible human resource (HR) practices and innovativeness. Testing the research model in a sample of first‐tier automotive suppliers indicates that internal flexibility practices are positively related to innovativeness. Regarding external flexibility, the association depends on the type of contingent employee: negative association for ‘short‐term hires’ and positive association for ‘consulting/contracting firms’. The relationships to innovativeness for practices associated with knowledge transfer are moderated by environmental dynamism, but the non‐knowledge related practices are not. Firms in highly dynamic environments can benefit more from flexible HR practices than firms in less dynamic environments.     

Uncovering the Value of Green Advertising for Environmental Management Practices

This paper extends previous environmental management research by building and empirically testing a model of the contingency effects of green advertising on the relationships between environmental management practices in terms of environmentally conscious manufacturing and product stewardship, environmental reputation and financial performance. We examine the value of green advertising in sharing and publicizing information about organizational achievements in environmental preservation in a business‐to business context with the Taiwanese electronics manufacturing industry. The theoretical propositions are largely confirmed by structural path analyses of survey responses collected from 122 Taiwanese electronics manufacturers. Green advertising delivers financial benefits only for those manufacturers that do not have an established environmental reputation. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment     

Green Product Innovation in Manufacturing Firms: A Sustainability‐Oriented Dynamic Capability Perspective

Despite environmental sustainability being identified as one of the key drivers of innovation, extant literature lacks a theoretically sound and empirically testable framework that can provide specific insights into green product innovation from a capability perspective. This study develops a theoretical framework from a sustainability‐oriented dynamic capability (SODC) perspective. We conceive SODCs as consisting of three underlying processes (external resource integration, internal resource integration, and resource building and reconfiguration) that influence the change/renewal of sustainability‐oriented ordinary capabilities (SOOCs) (green innovation capability and eco‐design capability). This study answers two key questions: which SODCs are needed to develop green innovation and eco‐design capabilities? Which of these capabilities lead to better market performance of green products? We test a structural model linking SODCs to market performance in 189 Italian manufacturing firms. First, we find that the nature of the SODC–performance link (direct or indirect) depends on the SODC type. Specifically, resource building and reconfiguration is the only SODC with a direct effect on market performance. Second, all three types of SODC affect the eco‐design capability, which mediates the link between SODCs and market performance. Third, we find that external resource integration is the only SODC affecting the green innovation capability, which mediates the link between external resource integration and market performance. Resource building and reconfiguration is the SODC with the overall (direct and indirect) highest impact on market performance. This study, among the first to consider capabilities for green product innovation under a dynamic capability perspective, provides implications for scholars, managers and policy makers. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment     

The moderating role of contextual factors on quality management practices

This study investigates how contextual factors influence the relationship between Quality Management (QM) practices and manufacturing performance. It contributes to the contingency theory of QM effectiveness. Drawing on the management literature, we differentiate two different groups of QM practices: Quality Exploitation and Quality Exploration. The analysis empirically investigates the internal fit with organizational structure and the external fit with environmental uncertainty on the relationship between Quality Exploration, Quality Exploitation, and operational performance. The data comes from a survey of 238 manufacturing plants in three industries across eight countries. Regression analyses show that both internal fit with the organizational structure and external fit with the environment affect performance. The findings also provide insights for managers on how to customize QM programs to achieve optimal performance benefits. In stable environments Quality Exploitation practices provide the best performance outcomes, while in a dynamic environment Quality Exploration practices with an organic organizational structure give the best results.     

Organizational Legitimacy and the Strategic Bridging Ability of Green Alliances

Alliances with environmental non‐governmental organizations may benefit multinational corporations (MNCs) operating in developing countries where uncertain socio‐cultural and institutional conditions present higher investment risks. Such ‘green alliances’ can provide strategic bridging services by interceding between MNCs and distant, yet important, stakeholders. From an institutional perspective, strategic bridging success may depend on stakeholder perceptions of alliance legitimacy. In this study the relationship between alliance legitimacy and strategic bridging ability is explored through the case of the Turtle Village Trust in Trinidad and Tobago. Findings suggest that bridging success occurs when organizational legitimacy peaks; that new alliance partners temporarily weaken legitimacy; and bridging with every new targeted stakeholder requires continued acquisition of legitimacy based on their respective values. MNC decisions to form alliances that bridge targeted stakeholders on their behalf should therefore consider the potential of the alliance to acquire and accumulate organizational legitimacy without which strategic bridging efforts may be futile. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.     

Dynamizing human resources: An integrative review of SHRM and dynamic capabilities research

Human resource management (HRM) systems have been extensively analyzed in academic research yet limited attention has been paid to the role of HRM dynamic capabilities (DC) and their impact on resources and practices, employee well-being and firm performance. Our study bridges this gap by defining a new categorization of HRM DC based on their ultimate aims: building knowledge, advancing social integration and developing reconfiguration-enhancing mechanisms. In parallel, we offer an integrative framework to shed light on how strategic human resource management (SHRM) can accelerate HRM DC development. Through this conceptual process model and typology of capabilities, we deepen the discussion around the core components of HRM systems, HRM DC, and their effects on resources and practices, employee well-being and performance. In practical terms, HRM DC represent a promising driver of sustainable long-term organizational growth by enabling firms to boost their strategic agility and capacity to navigate in the presence of environmental dynamism.     

The role of innovation in the implementation of green supply chain management practices

How organizational green practices become routinely embedded in supply chains remains underexplored in the literature. Based on the practice‐based view and normalization process theory, this study adopts a novel perspective on green supply chain management (GSCM) practices implementation and suggests that innovation is a crucial mechanism in such process. Specifically, we theorize and test the mediating effect of product and process innovation on the relationship between GSCM practices and sustainability performance. Survey data from 173 manufacturing firms were used to test the model hypotheses. Our findings show that product and process innovation mediate the relationship between GSCM practices and sustainability performance. The findings also suggest that the relevance of different innovation mechanisms depends on the stage of the operational lifecycle within which the practices are implemented. Our study provides insights for managers and scholars seeking to define innovation strategies to ensure the successful implementation of GSCM practices.     

The effect of environmental regulations,top management commitment,and organizational learning on green product innovation: Evidence from automobile industry

This paper proposes and empirically examines a model to investigate the effect of environmental regulations, top management commitment (TMCO) and organizational learning toward green product innovation (GPI). The proposed theoretical model, grounded in dynamic capabilities view (DCV) and upper echelons theory, is analyzed by Partial least squares (PLS) method using the data from Indian automotive manufacturing firms. The findings indicate the importance of TMCO and organizational learning for implementing GPI (in response to regulations), and achieve desired performance. Further, organizational learning fully mediates between commitment of top management and GPI. The findings can be useful for managers in automotive manufacturing firms who are interested toward implementing GPI. The paper contributes to green innovation literature by empirically examining the role of TMCO and organizational learning for GPI.