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Innovation intensity, creativity enhancement, and eco‐innovation strategy: The roles of customer demand and environmental regulation

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  • Yi‐Chuan Liao
  • Kuen‐Hung Tsai

Abstract

This study develops a contingency framework to investigate how and when innovation intensity and creativity enhancement affect a firm's eco‐innovation strategy by drawing upon the perspectives of the resource‐based view and stakeholder theory. This investigation aims to explore whether firms with high innovation intensity and creativity enhancement really pursue eco‐innovation strategy. Our examination is based on a sample of 2,126 manufacturing firms. By using a hierarchical regression, the results reveal that the effects of innovation intensity and creativity enhancement on eco‐innovation strategy depend on customer demand and environmental regulation. Specifically, customer demand positively moderates the effects of innovation intensity and creativity enhancement on eco‐innovation strategy, whereas existing regulation has a weaker effect on the relationship between innovation activities and eco‐innovation strategy than that of anticipated regulation.

Suggested Citation

  • Yi‐Chuan Liao & Kuen‐Hung Tsai, 2019. "Innovation intensity, creativity enhancement, and eco‐innovation strategy: The roles of customer demand and environmental regulation," Business Strategy and the Environment, Wiley Blackwell, vol. 28(2), pages 316-326, February.
    • Handle: RePEc:bla:bstrat:v:28:y:2019:i:2:p:316-326
    DOI: 10.1002/bse.2232
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