Effects of Green Innovation on Environmental and Corporate Performance: A Stakeholder Perspective

Ja-Shen Chen,Hua-Hung Weng,Pei-Ching Chen

doi:10.3390/su7054997

Abstract

“Going green” has become an important environmental issue in contemporary business practice worldwide. This study examined the influence of a number of factors on green innovation and the consequences in terms of performance. The stakeholder theory was adopted to observe the effects of each stakeholder on the green innovation practices of companies and to determine how green innovation practices influence environmental and business performance. A research model with eight hypotheses was proposed to determine the associations between the variables of interest. An empirical survey was conducted of 202 Taiwanese service and manufacturing companies. The survey found that pressure from competitors and the government, along with employee conduct, all had significant and positive effects on green innovation practices. Additionally, a moderating effect of innovation orientation existed only in the relationship between green product innovation practices and employee conduct. This study not only provides a systematic way to analyze the effects of green innovation practices but also suggests the best means for companies to adopt green innovation practices.

Highlights

The excessive use of natural resources occasioned by rapid economic growth has damaged the environment and raised many environmental concerns [1,2]
The current study addresses a central question in the green innovation field from the perspective of the stakeholders
The goals of this study were to determine the effects of pressure from stakeholders and/or the conduct of stakeholders on green innovation practices, to determine the conditions under which the degree of each stakeholder’s pressure/conduct would have the greatest effect on green innovation practices, and to determine the consequences on environmental and firm performance

Summary

Introduction

The excessive use of natural resources occasioned by rapid economic growth has damaged the environment and raised many environmental concerns [1,2]. To conserve energy and reduce carbon emissions, many countries have established environmental regulations; examples include restrictions on chlorofluorocarbons, the sustainable development announcements of the Johannesburg world summit, and restrictions on the use of certain hazardous substances (e.g., electrical and electronic equipment requirements, the European Union’s Restriction of Hazardous Substances Directive). These regulations have increased awareness of environmental management [3,4]; they have resulted in changes in management practices and competition among companies [5]. To facilitate the adoption of green innovations, companies must consider the important drivers and antecedents in their businesses [11]

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Conclusion