Environmental pressures and performance: An analysis of the roles of environmental innovation strategy and marketing capability

Abstract

The purpose of this study is to explore the relationship between environmental pressures (i.e. environmental regulation and stakeholder pressures) and performance considering the mediating role of environmental innovation strategy and the moderating role of marketing capability. Both primary data collected from 121 UK-based manufacturing firms and secondary data on financial performance of the firms is used to test the proposed relationships. The results show that environmental innovation strategy fully/partially mediates the relationship between environmental regulation/stakeholder pressures and environmental performance, and partially mediates the effect of environmental regulation on financial performance. The results also indicate that marketing capability significantly moderates the relationship between environmental regulation and environmental innovation strategy. Drawing upon contingency theory and dynamic capability view, by testing the mediation and moderation effects, the results of this study provide managers with valuable guidance for developing environmental innovation strategy.