The "Booster" of Corporate Eco-Innovation: Government Pressure Perceived by Chinese Private Firms.

Abstract

This study explores the relationship between perceived government pressure for environmental regulation and corporate eco-innovation. Based on the questionnaire data of Chinese private firms in 2016, this study explores the role of government pressure perceived by private firms in corporate environmental innovation, and the moderating effects of foreign ownership and entrepreneurs' political status. The results show that there is a positive relationship between perceived government environmental regulatory pressure and corporate eco-innovation, and this relationship can be strengthened by foreign ownership and entrepreneurs' political status. These findings provide a new strategic motivation for firms to undertake eco-innovation, i.e., the environmental regulatory pressure released by the government can urge firms to undertake strategies as an external “booster.”