Customer green orientation and process innovation alignment: A configuration approach in the global manufacturing industry

Research suggests that manufacturers increasingly innovate processes to meet customer's green requirements; however, little is known about the impact on performance and the contextual conditions, under which they are effective. Grounded on configuration approach, this study develops taxonomies of manufacturing firms based on the degree of customer's green orientation and process innovation. This study argues that performance differences between these clusters, highlight managerial implications for sustainable development. The empirical data used in this study were drawn from Global Manufacturing Research Group (GMRG) survey project (with data collected from 629 manufacturing firms from nine countries). Our results show that customer green innovation taxonomies influence differently on environmental measures, costs, and financial performance. The study proposes three clusters: Process active, Green minimalist, and Green proactive. The main differences between manufacturers are based on the level of investments in joint green improvement initiatives and customer direct investments in green activities. Firms that belong to the Process active cluster, who are first within the industry to deploy new processes and update the latest process development, gained significant improvement in financial measures such as market share and profits. Whereas Green minimalist cluster lagged behind, Green proactive manufacturers aligned in both capabilities to experience higher payoffs in sustainable performance measures and efficiency. The findings provide a step‐by‐step decision‐making process and offer guidance for supply chain managers who have to stretch their needs to align the innovation processes to enhance their sustainable performance.     

How do corporate environmental policy and corporate reputation affect risk‐adjusted financial performance?

The current study aims to answer dual, related questions: Does corporate environmental policy affect corporate reputation, and does this link also influence risk‐adjusted profitability and company's risk? With a comprehensive framework involving analyses of each question, among a sample of firms traced by the Reputation Institute, this study reveals several notable results, after correcting for endogeneity biases. First, environmental engagement and green product innovation are both antecedents of corporate reputation. Second, corporate reputation has a positive impact on risk‐adjusted profitability and Z score indicator of financial distress risk. Thus, corporate environmental responsibility and green practices represent cospecialized assets that enhances an intangible asset, namely, corporate reputation. The latter influence constitutes a missing link between sustainable development and the firm's financial performance. Overall, environmental engagement and corporate reputation act as insurance‐like protections of firm competitiveness.     

Improving Firm Environmental Performance and Reputation: The Role of Employee Green Teams

This paper examines the link between a firm's organization environmental management capability, represented by the development of green teams made up of employees, and its performance. In particular, two categories of firm performance will be analysed: environmental performance and environmental reputation. This link has been investigated in a sample made of the largest publicly traded US companies. Data about green teams have been collected through the content analysis of firm environmental/sustainability/corporate social responsibility reports and/or their websites, whereas data about environmental performance and reputation are those reported in the US 500 Newsweek's 2010 Green Ranking. Regression analysis results show that the creation of employee green teams positively affects both environmental performance and environmental reputation. 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.     

CEOs' reputation,quality management and environmental innovation: The roles of stakeholder pressure and resource commitment

In this paper, we examine how and when chief executive officers' (CEOs') reputation enhances environmental innovation by considering quality management as a mediating mechanism of this relationship. In addition, we introduce stakeholder pressures (primary and secondary stakeholder pressures) as important contingencies of the relationship between CEOs' reputation and quality management. Moreover, we test the moderating role of resource commitment on the quality management‐environmental innovation relationship. We test our research model using data from a manufacturing industry sample of 217 firms from Ghana. We find that quality management mediates the relationship between reputation and environmental innovation. Moreover, the relationship between CEOs' reputation and quality management is amplified when levels of both primary and secondary stakeholder pressures are greater. Finally, our findings show that the effect of quality management on environmental innovation is enhanced when resource commitment is greater. Implications for theory and practice are discussed.     

Utilize structural equation modeling (SEM) to explore the influence of corporate environmental ethics: the mediation effect of green human capital

This study utilizes structural equation modeling (SEM) to explore the positive effects of corporate environmental ethics on green relationship learning and green innovation performance in the Taiwanese manufacturing industry. In addition, this study explores the concept of green human capital and discusses its mediation effect on the positive relationships between corporate environmental ethics and the two consequents: green relationship learning and green innovation performance. The empirical results show that corporate environmental ethics positively affects green relationship learning and green innovation performance. Furthermore, this study verifies green human capital mediates the positive relationships between corporate environmental ethics and the two consequents: green relationship learning and green innovation performance. Finally, this study divides the Taiwanese manufacturing companies into several different groups, and provides some suggestions to them.     

A Comparison of Regulatory Awareness and Green Supply Chain Management Practices Among Chinese and Japanese Manufacturers

Leading manufacturers in developed countries generally have high environmental awareness and implement proactive environmental management practices such as green supply chain management (GSCM). However, it is uncertain if smaller manufacturers in developed countries are more proactive than all manufacturers in developing countries. To understand this situation, we carried out surveys among small and medium‐sized Japanese manufacturers, leading Chinese manufacturers and traditional Chinese manufacturers. Statistical results show that leading Chinese manufacturers have the highest awareness of both domestic and international environmental regulations/policies, and implement all GSCM practices at the highest level. Leading Chinese manufacturers and Japanese manufacturers are aware of international environmental regulations/policies, but such awareness only motivates them to implement eco‐design practices. Traditional Chinese manufacturers have limited awareness of international environmental regulations/policies, but such awareness brings all types of GSCM practice. Such results can be helpful for different manufacturers in both developed and developing countries to develop suitable environmental strategies. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment     

The role of returnee executives in improving green innovation performance of Chinese manufacturing enterprises: Implications for sustainable development strategy

Environmental problems in China have attracted global attention. Grafting returnee executives' green resources to Chinese manufacturing enterprises is an effective way to solve China's sustainable development problems. This paper focuses on the impact of returnee executives and the heterogeneity of returnee and local executives on green innovation performance and the moderating effects of environmental regulation and managerial ties. The paper builds on data from 276 Chinese manufacturing enterprises. The results show that returnee executives tend to achieve sustainable development through green innovation. However, not all kinds of heterogeneity between returnee and local executives can promote green innovation performance. In addition, environmental regulation and managerial ties, as two important external moderation variables, have different impacts and different extents of impact on the relationship between returnee executives and four aspects (R&D, manufacturing, marketing, and management) of green innovation performance, that is, environmental regulation positively moderates the relationship between returnee executives and green manufacturing and management innovation performance but negatively moderates the relationship between returnee executives and green R&D and marketing innovation performance. These findings have clear management implications for Chinese manufacturing enterprises.     

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.     

Environmental Governance of Enterprises and their Economic Upshot through Corporate Reputation and Customer Satisfaction

Drawing on resource‐advantage and signalling theories, we investigate two mechanisms, namely corporate reputation and customer satisfaction, by which the environmental governance of enterprises can benefit their economic performance. Based on secondary data from the 500 largest US enterprises compiled from multiple sources, our findings contribute to the literature by establishing the link between corporate reputation and green reputation. We also establish the economic performance paths of environmental governance via corporate reputation and customer satisfaction. This study expounds on why ‘green’ matters and identifies the performance roles of two corporate strategic resources extractable from the environmental governance of enterprises. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment     

Enhancing green product and process innovation: Towards an integrative framework of knowledge acquisition and environmental investment

Despite the increasing interest in green innovation literature, little is known on how and under what conditions firms' knowledge transfer activities affect green innovation. There is lack of research that on how particular organizational capabilities are seen more useful and how it influences on green innovation performance. To address this research gap, we examine a mediation model in which we explore whether a firm's knowledge acquisition capability and investment in environmental management mediate the impact of buyer-driven knowledge transfer activities on green product innovation and green process innovation. On the basis of an analysis of a sample of 239 manufacturing firms, we find that buyer-driven knowledge activities have a greater positive impact on green product innovation than green process innovation. Investment in environmental management fully mediates the relationship between buyer-driven knowledge transfer activities and green process innovation, and knowledge acquisition capability partially mediates the relationship between buyer-driven knowledge transfer activities and green product innovation. The current study provides evidence that internal competencies and the role of buyers in knowledge transfer are critical for explaining the green product innovation and green process innovation. Our results suggest that buyer involvement pushes firms to develop resource acquisition capability to enhance green product innovation. Our results also highlight the importance of investment in environmental management for overcoming the environmental challenges in the manufacturing firms.     

Does gender diversity matter for green innovation?

This study empirically investigated the relationship between board gender diversity and firm's green innovation, using panel data of public companies of China's manufacturing. Green product innovation was assessed by “green” patents and green process innovation assessed by environmental management certification. The endogeneity problem that resulted from self‐selection of gender diversity was addressed by means of extended probit regressions with an instrumental variable, and the instrumental variable was elaborately constructed based on changes in directorships. The findings show that occurrence of green innovation at the firm‐level is systematically related to female board representation. Specifically, women can exert a sizable and positive effect on green innovation, once they enjoy at least two seats on the boards; a further increase in representation of women on the boards can increase the likelihood of green product innovation rather than the likelihood of green process innovation. These results were robust to various regression specifications and alternative samples. The study provides empirical evidence that women at the top management can play a positive role in developing firm's active environmental strategies, and the conclusions are of practical implications for improving corporate governance along the environmental dimension.     

How do green knowledge management and green technology innovation impact corporate environmental performance? Understanding the role of green knowledge acquisition

Increasing regulatory obligations to adapt and execute environmentally friendly operations make it critical for businesses to pursue strategies that can strengthen their competitive edge in the market. Academics and practitioners alike have recently gravitated toward exploring how knowledge acquisition activities might improve business outcomes. To address this growing research interest, this study investigates the critical roles of green knowledge acquisition in enhancing green knowledge management and green technology innovation activities in improving corporate environmental performance, positioning resource commitment as a moderator. The research model has been assessed using structural equation modeling with survey data from 283 Indian manufacturers, demonstrating that green knowledge acquisition significantly impacts green knowledge management and green technology innovation. The statistical findings also show that green technology innovation acts catalyzes the translation of green knowledge management into improved corporate environmental performance. The results demonstrate that resource commitment moderates green knowledge acquisition's interaction with green knowledge management and green technology innovation, providing practical insights enabling managers to focus on planning, allocating, and budgeting resources for effective green practices that can contribute to improving corporate environmental performance.     

Corporate environmental responsibility,employer reputation and employee commitment: an empirical study in developed and emerging economies

Employer reputation is relevant not only to attract but also to retain qualified employees. While in the past financial incentives have been the most important instrument, corporate environmental responsibility (CER) is becoming more and more relevant as a determinant for employer attractiveness and employee commitment. On the basis of signaling theory, we conducted an empirical study among 215 firms in China, Germany, India and the USA. Our results reveal that green strategy & culture, green technology & products, green recruitment & evaluation and green communication positively influence the environmental reputation of a company as an employer and in turn employee commitment. The signaling effects of these CER activities are similar in Germany and the USA (developed economies) as well as in China and India (emerging economies). An exception is green communication, which has a more positive effect on environmental reputation in developed economies. We conclude with managerial and theoretical implications as well as recommendations for future research.     

Toward Sustainable Livelihoods: Investigating the Drivers of Purchase Behavior for Green Products

Green consumption involves comprehensive concerns that address the broad scope of sustainability, ecosystem balance, profit‐generation and people. Identifying the factors that influence consumers' purchase behavior enables manufacturers to understand consumers' decision‐making processes and can help them develop more environmentally beneficial products. However, scholars have recently found that a gap exists between environmental concern and consumers' actual purchase behavior. The purpose of this paper is to use cognitive behavior theory to investigate the drivers of green consumption behavior and the missing link in the concern–behavior gap. After collecting 375 valid questionnaires, this study validated the proposed conceptual model using structural equation modeling. The revised model indicates that environmental involvement, informational utility, green advertising skepticism and green trust are antecedent variables of consumer attitudes toward green products. Additionally, this study also provides a possible explanation of and remedies for the concern–behavior gap. Copyright © 2017 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.     

Explaining the impact of ISO 14001 on emission performance: a dynamic capabilities perspective on process and learning

I draw upon the dynamic capability model to explore how new process standards influence the ability of manufacturing facilities to improve environmental performance by reducing toxic emissions. The process standards studied are the ISO 14001 environmental management standards, in use since 1996. Hypotheses are developed to account for how early adoption of ISO 14001 and experience with the standards influence emission levels. These hypotheses are tested using a large sample of electronics manufacturing facilities and data from 1996 through 2001. Consistent with theoretical expectations, analyses show that being one of the first facilities to adopt ISO 14001 was associated with lower emissions. Further, a separate effect is due to experience: the longer a facility operated under ISO 14001, the lower its emissions. The paper discusses the implications of these results for theory and policy development. Copyright © 2007 John Wiley & Sons, Ltd and ERP Environment.     

不对称信息下餐饮企业绿色供应链管理实践多案例研究

本文通过多案例研究方法研究了餐饮企业在不对称信息下实施绿色供应链管理的实践以及信任关系协调,即企业如何在供应链中有效地传递环境绩效信息,协调机会主义行为与信任合作之间的关系。研究表明：企业通过第三方独立认证,可以构建绿色品牌声誉,从而向利益相关者传递环境绩效信息;通过契约合同及纵向一体化可以实现绿色采购;不对称信息下,企业面临平衡信任合作与机会主义行为之间的矛盾问题,需要通过提高信任程度来实现绿色供应链管理的持续改进。     

Environmental Requirements,Knowledge Sharing and Green Innovation: Empirical Evidence from the Electronics Industry in China

Building on the Porter hypothesis, which posits that regulatory stringency triggers innovation and thereby allows firms to achieve the dual purpose of environment protection and enhanced business performance, the present research develops an integrative model that explores the determinants of green innovation with a focus being placed on knowledge sharing. Data were collected from 203 green innovation project leaders from electronics manufacturers operating in China. The results indicate that knowledge sharing mediates the relationship between green requirements and new green product success as well as that between green requirements and green product and process innovations. Interestingly, the empirical analysis rejects the hypothesized positive influence of green requirements on green product and process innovations as well as that on new green product success, while confirming that there exists a direct and positive association between green requirements and knowledge sharing. The direct positive impact of knowledge sharing is the strongest on green process innovation. This study provides a theoretical basis for investigating the possible determinants in the causal links between green requirements and green innovation success and establishes that knowledge sharing and green process innovation may be the points where leverage can be applied to best secure innovation success. Implications of the findings on environmental policy and law design are also discussed to see how the regulatory role of the government can be better positioned to facilitate compliance and innovation. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.     

Does the configuration of macro‐ and micro‐institutional environments affect the effectiveness of green supply chain integration?

Despite the importance of the general environment in affecting the effectiveness of green supply chain integration (GSCI), our understanding of the roles of different configurations of macro‐ and micro‐institutional environments remains limited. Based on institutional theory and resource mobilization theory, this study examined the moderating effects of the configurations of macro‐ and micro‐institutional environments on the GSCI performance link employing both a configuration and a contingency perspective. Our findings from a longitudinal survey of 206 Chinese manufacturing firms provide empirical evidence for the coexistence and nature of macro‐ and micro‐institutional environments and their moderating effect on the GSCI performance link. Specifically, the results revealed that Chinese manufacturers can be clustered into three groups with different macro‐ and micro‐institutional environments (i.e., cognizant, sensible, and conscious manufacturers). Furthermore, the configuration of macro‐ and micro‐institutional environments moderates the effect of green supplier integration on social performance, as well as the effects of green customer integration on financial, environmental, and social performance. This study contributes to both the GSCI literature and practices.