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Innovation shock, outsourcing strategy, and environmental performance: The roles of prior green innovation experience and knowledge inheritance

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  • Faisal Khurshid
  • Woo‐Yong Park
  • Felix T.S. Chan

Abstract

To investigate under what conditions an outsourcing strategy can show superior environmental performance, one stream of scholars has underscored the importance of prior green innovation experience, and another stream of scholars has underscored the importance of the in‐house possession of outsourced component knowledge. However, the empirical findings regarding the positive role of both scholarly streams when studied separately are mixed and sometimes contradictory. This study bridges these two distinct but related streams and suggests that prior green innovation experience and in‐house knowledge regarding outsourced components play a complementary role in enhancing environmental performance. The U.S. hybrid electric vehicle market lends support to the argument of this study. In so doing, this study increases our understanding of the role of prior green innovation experience and outsourced component knowledge on environmental performance while pursuing an outsourcing strategy. This study also provides guidance for managers and policymakers on how to achieve superior environmental performance in outsourcing.

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  • Faisal Khurshid & Woo‐Yong Park & Felix T.S. Chan, 2019. "Innovation shock, outsourcing strategy, and environmental performance: The roles of prior green innovation experience and knowledge inheritance," Business Strategy and the Environment, Wiley Blackwell, vol. 28(8), pages 1572-1582, December.
    • Handle: RePEc:bla:bstrat:v:28:y:2019:i:8:p:1572-1582
    DOI: 10.1002/bse.2333
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    5. Meng Li & Zengrui Tian & Qian Liu & Yuzhong Lu, 2022. "Literature Review and Research Prospect on the Drivers and Effects of Green Innovation," Sustainability, MDPI, vol. 14(16), pages 1-23, August.
    6. Di Luan & Hongjun Cao & Tongkun Qu, 2023. "How Does Corporate Green Innovation Strategy Translate into Green Innovation Performance Based on Chain Mediation?," Sustainability, MDPI, vol. 15(16), pages 1-20, August.
    7. Khalid Mehmood & Pradeep Kautish & Sachin Kumar Mangla & Ahsan Ali & Yigit Kazancoglu, 2024. "Navigating a net‐zero economy future: Antecedents and consequences of net‐zero economy‐based green innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4175-4197, July.
    8. Yongbo Sun & Hui Sun, 2021. "Green Innovation Strategy and Ambidextrous Green Innovation: The Mediating Effects of Green Supply Chain Integration," Sustainability, MDPI, vol. 13(9), pages 1-20, April.
    9. Jing Xiao & Yan Zhou & Ping Zeng, 2024. "How does green strategy orientation promote substantive green innovation? Evidence from Chinese manufacturing enterprises," Economic Change and Restructuring, Springer, vol. 57(6), pages 1-31, December.
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