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Environmental labeling certification and corporate environmental innovation: The moderating role of corporate ownership and local government intervention

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  • Ren, Shenggang
  • He, Duojun
  • Yan, Ji
  • Zeng, Huixiang
  • Tan, Justin

Abstract

Although it is well recognized that environmental labeling certification (ELC) is becoming an increasingly important voluntary environmental regulation worldwide, the evidence regarding its role in environmental innovation remains unknown. This study examines the impact of ELC on corporate environmental innovation (CEI) from both external and internal perspectives via the combination of legitimacy theory and the resource management perspective. Based on panel data of listed Chinese manufacturing firms from 2008 to 2014, it is found that ELC improves CEI. However, this relationship is also regulated by two contextual factors: the positive impact of ELC on CEI is found to be stronger for non-state-owned enterprises (non-SOEs) than for state-owned enterprises (SOEs), and it is stronger for firms in regions with a low degree of local government intervention than for firms in regions with a high degree of local government intervention. This study makes important theoretical contributions and has extensive practical value.

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  • Ren, Shenggang & He, Duojun & Yan, Ji & Zeng, Huixiang & Tan, Justin, 2022. "Environmental labeling certification and corporate environmental innovation: The moderating role of corporate ownership and local government intervention," Journal of Business Research, Elsevier, vol. 140(C), pages 556-571.
    • Handle: RePEc:eee:jbrese:v:140:y:2022:i:c:p:556-571
    DOI: 10.1016/j.jbusres.2021.11.023
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    6. Wanli Zhang & Bin Zhu & Yongling Li & Dan Yan, 2024. "Revisiting the Porter hypothesis: a multi-country meta-analysis of the relationship between environmental regulation and green innovation," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    7. Youmeng Wu & Hao Sun & Hongliang Sun & Chi Xie, 2022. "Impact of Public Environmental Concerns on the Digital Transformation of Heavily Polluting Enterprises," IJERPH, MDPI, vol. 20(1), pages 1-19, December.
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