A dual-path model: Bridge between heterogeneous environmental regulations and enterprise green innovation

Abstract

Although environmental regulations are effective forces to conduct green innovation, the existing research has not yet reached a consensus on the relationship between environmental regulations and enterprise green innovation. The objective of this study is to explore the influence mechanism of environmental regulations (i.e., market-based and command-based) on enterprise green innovation from the perspective of social information processing theory and regulatory focus theory. A time-lagged survey based on a Chinese sample of 184 firms supports the hypothesized moderated mediation model. The results show that (a) environmental regulations positively impact enterprise green innovation; (b) top management team (TMT) harmonious environmental passion climate fully mediates the relationship between market-based environmental regulation and enterprise green innovation, while TMT environmental performance anxiety climate partially mediates the relationship between command-based environmental regulation and enterprise green innovation; (3) chief executive officer (CEO) promotion regulatory focus moderates the positive impact of TMT harmonious environmental passion climate on enterprise green innovation, and CEO prevention regulatory focus moderates the positive impact of TMT environmental performance anxiety climate on enterprise green innovation. These findings extend the green innovation literature on how and when environmental regulations affect enterprise green innovation.