IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v29y2020i8p3123-3134.html
   My bibliography  Save this article

An environmental perspective extends market orientation: Green innovation sustainability

Author

Listed:
  • Chao Hung Wang

Abstract

Though there has been much research into green performance, few studies have analyzed whether a green market orientation (GMO) is important. In this study, we propose and test a model that links three subconstructs of GMO (i.e., green customer orientation, green interfunctional orientation, and green competitor orientation) and green performance. The mediating role of green innovation and if there is a missing link between these relationships is also tested. By decomposing the components of GMO and introducing green innovation as a mediator, the results contribute to a more nuanced understanding of how and why green innovation is important in the linkage between GMO and green innovation. Using a survey of 248 high‐tech firms in Taiwan, the results highlight three subconstructs of GMO in facilitating green innovation and green performance. Green innovation fully mediates the association between green interfunctional orientation and green performance. However, green innovation only partially mediates the effects of green customer orientation and green competitor orientation on green performance.

Suggested Citation

  • Chao Hung Wang, 2020. "An environmental perspective extends market orientation: Green innovation sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3123-3134, December.
    • Handle: RePEc:bla:bstrat:v:29:y:2020:i:8:p:3123-3134
    DOI: 10.1002/bse.2561
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.2561
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.2561?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Menguc, Bulent & Ozanne, Lucie K., 2005. "Challenges of the "green imperative": a natural resource-based approach to the environmental orientation-business performance relationship," Journal of Business Research, Elsevier, vol. 58(4), pages 430-438, April.
    2. Hua-Hung (Robin) Weng & Ja-Shen Chen & Pei-Ching Chen, 2015. "Effects of Green Innovation on Environmental and Corporate Performance: A Stakeholder Perspective," Sustainability, MDPI, vol. 7(5), pages 1-30, April.
    3. Horbach, Jens & Rammer, Christian & Rennings, Klaus, 2012. "Determinants of eco-innovations by type of environmental impact — The role of regulatory push/pull, technology push and market pull," Ecological Economics, Elsevier, vol. 78(C), pages 112-122.
    4. Yu, Wantao & Ramanathan, Ramakrishnan & Nath, Prithwiraj, 2017. "Environmental pressures and performance: An analysis of the roles of environmental innovation strategy and marketing capability," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 160-169.
    5. Carrión-Flores, Carmen E. & Innes, Robert, 2010. "Environmental innovation and environmental performance," Journal of Environmental Economics and Management, Elsevier, vol. 59(1), pages 27-42, January.
    6. Kristel Buysse & Alain Verbeke, 2003. "Proactive environmental strategies: a stakeholder management perspective," Strategic Management Journal, Wiley Blackwell, vol. 24(5), pages 453-470, May.
    7. Jing-Wen Huang & Yong-Hui Li, 2017. "Green Innovation and Performance: The View of Organizational Capability and Social Reciprocity," Journal of Business Ethics, Springer, vol. 145(2), pages 309-324, October.
    8. Yaprak, Attila & Tasoluk, Burcu & Kocas, Cenk, 2015. "Market orientation, managerial perceptions, and corporate culture in an emerging market: Evidence from Turkey," International Business Review, Elsevier, vol. 24(3), pages 443-456.
    9. Xie, Xuemei & Huo, Jiage & Zou, Hailiang, 2019. "Green process innovation, green product innovation, and corporate financial performance: A content analysis method," Journal of Business Research, Elsevier, vol. 101(C), pages 697-706.
    10. Kevin Zheng Zhou & Julie Juan Li & Nan Zhou & Chenting Su, 2008. "Market orientation, job satisfaction, product quality, and firm performance: evidence from China," Strategic Management Journal, Wiley Blackwell, vol. 29(9), pages 985-1000, September.
    11. Stephan, Annegret & Schmidt, Tobias S. & Bening, Catharina R. & Hoffmann, Volker H., 2017. "The sectoral configuration of technological innovation systems: Patterns of knowledge development and diffusion in the lithium-ion battery technology in Japan," Research Policy, Elsevier, vol. 46(4), pages 709-723.
    12. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    13. Neil A. Morgan & Douglas W. Vorhies & Charlotte H. Mason, 2009. "Market orientation, marketing capabilities, and firm performance," Strategic Management Journal, Wiley Blackwell, vol. 30(8), pages 909-920, August.
    14. Bruna Alexandra Elias Mota & Ana Isabel Cerqueira de Sousa Gouveia Carvalho & Maria Isabel Azevedo Rodrigues Gomes & Ana Paula Ferreira Dias Barbosa‐Povoa, 2020. "Business strategy for sustainable development: Impact of life cycle inventory and life cycle impact assessment steps in supply chain design and planning," Business Strategy and the Environment, Wiley Blackwell, vol. 29(1), pages 87-117, January.
    15. Yang, Chung-Shan & Lu, Chin-Shan & Haider, Jane Jing & Marlow, Peter Bernard, 2013. "The effect of green supply chain management on green performance and firm competitiveness in the context of container shipping in Taiwan," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 55(C), pages 55-73.
    16. Jodyanne Kirkwood & Sara Walton, 2010. "How ecopreneurs’ green values affect their international engagement in supply chain management," Journal of International Entrepreneurship, Springer, vol. 8(2), pages 200-217, June.
    17. Yujin Beak & Kayoung Kim & Kyuho Maeng & Youngsang Cho, 2020. "Is the environment‐friendly factor attractive to customers when purchasing electric vehicles? Evidence from South Korea," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 996-1006, March.
    18. Roper, Stephen & Tapinos, Efstathios, 2016. "Taking risks in the face of uncertainty: An exploratory analysis of green innovation," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 357-363.
    19. Yu-Shan Chen, 2008. "The Driver of Green Innovation and Green Image – Green Core Competence," Journal of Business Ethics, Springer, vol. 81(3), pages 531-543, September.
    20. Yu-Shan Chen & Shyh-Bao Lai & Chao-Tung Wen, 2006. "The Influence of Green Innovation Performance on Corporate Advantage in Taiwan," Journal of Business Ethics, Springer, vol. 67(4), pages 331-339, September.
    21. Jianming Zhang & Gongqian Liang & Taiwen Feng & Chunlin Yuan & Wenbo Jiang, 2020. "Green innovation to respond to environmental regulation: How external knowledge adoption and green absorptive capacity matter?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(1), pages 39-53, January.
    22. Desyllas, Panos & Hughes, Alan, 2010. "Do high technology acquirers become more innovative?," Research Policy, Elsevier, vol. 39(8), pages 1105-1121, October.
    23. El-Kassar, Abdul-Nasser & Singh, Sanjay Kumar, 2019. "Green innovation and organizational performance: The influence of big data and the moderating role of management commitment and HR practices," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 483-498.
    24. Giorgos Papagiannakis & Irini Voudouris & Spyros Lioukas & George Kassinis, 2019. "Environmental management systems and environmental product innovation: The role of stakeholder engagement," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 939-950, September.
    25. Justin Doran & Geraldine Ryan, 2016. "The Importance of the Diverse Drivers and Types of Environmental Innovation for Firm Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 25(2), pages 102-119, February.
    26. Nicole Darnall & Irene Henriques & Perry Sadorsky, 2010. "Adopting Proactive Environmental Strategy: The Influence of Stakeholders and Firm Size," Journal of Management Studies, Wiley Blackwell, vol. 47(6), pages 1072-1094, September.
    27. Chiou, Tzu-Yun & Chan, Hing Kai & Lettice, Fiona & Chung, Sai Ho, 2011. "The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 822-836.
    28. Dibrell, Clay & Craig, Justin B. & Hansen, Eric N., 2011. "How managerial attitudes toward the natural environment affect market orientation and innovation," Journal of Business Research, Elsevier, vol. 64(4), pages 401-407, April.
    29. Papadas, Karolos-Konstantinos & Avlonitis, George J. & Carrigan, Marylyn, 2017. "Green marketing orientation: Conceptualization, scale development and validation," Journal of Business Research, Elsevier, vol. 80(C), pages 236-246.
    30. Ester Martínez‐Ros & Rasi Kunapatarawong, 2019. "Green innovation and knowledge: The role of size," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1045-1059, September.
    31. Armstrong, J. Scott & Collopy, Fred, 1996. "Competitor Orientation: Effects of Objectives and Information on Managerial Decisions and Profitability," MPRA Paper 81676, University Library of Munich, Germany.
    32. Reginald Masocha, 2018. "Does Environmental Sustainability Impact Innovation, Ecological and Social Measures of Firm Performance of SMEs? Evidence from South Africa," Sustainability, MDPI, vol. 10(11), pages 1-11, October.
    33. Siarhei Manzhynski & Frank Figge, 2020. "Coopetition for sustainability: Between organizational benefit and societal good," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 827-837, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ayça Kubra Hizarci‐Payne & İlayda İpek & Gülüzar Kurt Gümüş, 2021. "How environmental innovation influences firm performance: A meta‐analytic review," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1174-1190, February.
    2. Chao Hung Wang & Wei‐Jr Juo, 2021. "An environmental policy of green intellectual capital: Green innovation strategy for performance sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3241-3254, November.
    3. Kraus, Sascha & Rehman, Shafique Ur & García, F. Javier Sendra, 2020. "Corporate social responsibility and environmental performance: The mediating role of environmental strategy and green innovation," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    4. Yousaf, Umair Bin & Ullah, Irfan & Jiang, Junchen & Wang, Man, 2022. "The role of board capital in driving green innovation: Evidence from China," Journal of Behavioral and Experimental Finance, Elsevier, vol. 35(C).
    5. Yueping Du & Huanhuan Wang, 2022. "Green Innovation Sustainability: How Green Market Orientation and Absorptive Capacity Matter?," Sustainability, MDPI, vol. 14(13), pages 1-20, July.
    6. Wenbo Jiang & Francesco Rosati & Huaqi Chai & Taiwen Feng, 2020. "Market orientation practices enhancing corporate environmental performance via knowledge creation: Does environmental management system implementation matter?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(5), pages 1899-1924, July.
    7. Chotia, Varun & Cheng, Yue & Agarwal, Reeti & Vishnoi, Sushant Kumar, 2024. "AI-enabled Green Business Strategy: Path to carbon neutrality via environmental performance and green process innovation," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    8. Lin, Woon Leong & Ho, Jo Ann & Sambasivan, Murali & Yip, Nick & Mohamed, Azali Bin, 2021. "Influence of green innovation strategy on brand value: The role of marketing capability and R&D intensity," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    9. Erik Andreas Saether & Ann Elida Eide & Øyvind Bjørgum, 2021. "Sustainability among Norwegian maritime firms: Green strategy and innovation as mediators of long‐term orientation and emission reduction," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2382-2395, July.
    10. Xie, Xuemei & Han, Yuhang & Hoang, Thu Thao, 2022. "Can green process innovation improve both financial and environmental performance? The roles of TMT heterogeneity and ownership," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    11. Huang, Yi-Chun & Chen, Chih Ta, 2022. "Exploring institutional pressures, firm green slack, green product innovation and green new product success: Evidence from Taiwan's high-tech industries," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    12. Ru-Jen Lin & Rong-Huei Chen & Thao-Minh Ho, 2013. "Market Demand, Green Innovation, and Firm Performance: Evidence from Hybrid Vehicle Industry," Diversity, Technology, and Innovation for Operational Competitiveness: Proceedings of the 2013 International Conference on Technology Innovation and Industrial Management,, ToKnowPress.
    13. Abu Elnasr E. Sobaih & Ahmed Hasanein & Ibrahim Elshaer, 2020. "Influences of Green Human Resources Management on Environmental Performance in Small Lodging Enterprises: The Role of Green Innovation," Sustainability, MDPI, vol. 12(24), pages 1-19, December.
    14. Ying, Ying & Wang, Shixiang & Liu, Yang, 2022. "Make bricks without straw: Eco-innovation for resource-constrained firms in emerging markets," Technovation, Elsevier, vol. 114(C).
    15. Xinwei Li & Wenjuan Zeng & Mao Xu, 2022. "The Moderating Role of IT Capability on Green Innovation and Ambidexterity: Towards a Corporate Sustainable Development," Sustainability, MDPI, vol. 14(24), pages 1-20, December.
    16. Lu Qiu & Xiaowen Jie & Yanan Wang & Minjuan Zhao, 2020. "Green product innovation, green dynamic capability, and competitive advantage: Evidence from Chinese manufacturing enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 146-165, January.
    17. Chen Liu & Dongmin Kong, 2021. "Business strategy and sustainable development: Evidence from China," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 657-670, January.
    18. Bang-Ning Hwang & Chi-Yo Huang & Chih-Hsiung Wu, 2016. "A TOE Approach to Establish a Green Supply Chain Adoption Decision Model in the Semiconductor Industry," Sustainability, MDPI, vol. 8(2), pages 1-30, February.
    19. Tariq, Adeel & Badir, Yuosre F. & Tariq, Waqas & Bhutta, Umair Saeed, 2017. "Drivers and consequences of green product and process innovation: A systematic review, conceptual framework, and future outlook," Technology in Society, Elsevier, vol. 51(C), pages 8-23.
    20. Feng Zhang & Lei Zhu, 2019. "Enhancing corporate sustainable development: Stakeholder pressures, organizational learning, and green innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1012-1026, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:29:y:2020:i:8:p:3123-3134. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.