Abstract
Global environmental problems have arisen since some firms pursue fast growth at the expense of massive resource consumption and environmental degradation. Under such conditions, stakeholders increasingly require firms to implement sustainability-friendly practices. This paper explored whether innovative knowledge assets and firm transparency promoted sustainability-friendly practices and further investigated the moderating role of firm transparency on the relationship between innovative knowledge assets and sustainability-friendly practices. Using 1186 firm-year observations of Chinese listed firms from 2006 to 2015, the results showed that innovative knowledge assets (β = 0.787, p < 0.001) and firm transparency (β = 0.280, p < 0.001) exerted positive impacts on sustainability-friendly practices and that the interaction of innovative knowledge assets and firm transparency (β = 0.274, p < 0.01) also positively affected the extent to which a firm's innovative knowledge can reach its full potential for sustainability-friendly practices. The outcomes of this paper will innovate the corporate sustainability literature and offer a fresh pathway to future studies.
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