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

  • Jianming Zhang
  • , Gongqian Liang
  • , Taiwen Feng
  • , Chunlin Yuan*
  • , Wenbo Jiang
  • *Corresponding author for this work
  • Northwestern Polytechnical University Xian
  • School of Economics and Management, Harbin Institute of Technology Weihai
  • Henan University

Research output: Contribution to journalArticlepeer-review

Abstract

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.

Original languageEnglish
Pages (from-to)39-53
Number of pages15
JournalBusiness Strategy and the Environment
Volume29
Issue number1
DOIs
StatePublished - 1 Jan 2020
Externally publishedYes

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 9 - Industry, Innovation, and Infrastructure
    SDG 9 Industry, Innovation, and Infrastructure

Keywords

  • environmental regulation
  • external knowledge adoption
  • green absorptive capacity
  • green innovation
  • stakeholder engagement
  • sustainable development

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