Abstract
Eco-innovations are crucial for addressing environmental challenges. Based on a survey of 301 large German firms, we explore the roles of formal and informal environmental management control systems (EMCSs) in translating external perceived stakeholder pressure (PSP) into eco-innovations. By employing partial least squares structural equation modeling, the findings indicate that both formal and informal EMCSs positively and partially mediate the relationship between PSP and eco-innovation. Building on the natural resource-based view (NRBV), our study contributes to the accounting literature by exploring the taxonomy of formal and informal controls. The results demonstrate the important role of informal EMCSs alongside formal EMCSs in developing the capabilities necessary to channel PSP toward eco-innovations, emphasizing the role of management controls in sustainable development. Furthermore, we contribute to quantitative research on the role of management controls in the field of environmental sustainability and innovation. The implications of our study are relevant for managers as formal and informal controls are anchored differently in the firm and therefore require different approaches to create a balance of both.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
