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What drives environmental innovation? A meta‐analysis

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  • Zhongju Liao
  • Yan Liu

Abstract

To clarify the drivers of environmental innovation, this study selected 50 independent samples from 49 publications to investigate the effects of four major factors—policy, market, resource capacity, and organizational characteristics—on environmental innovation using a meta‐analysis, as well as demonstrating the moderating role of cultural background and industrial diversity. The results show that both environmental regulations and government subsidies positively promote environmental innovation and that cultural background and industrial diversity do play moderating roles in how environmental regulations impact environmental innovation. Furthermore, customer demand is also shown to have a positive impact on environmental innovation and is moderated by industrial diversity. However, market concentration is not shown to significantly affect environmental innovation. The results also show that knowledge sources, technological capabilities, organization's performance, and environmental management systems positively influence environmental innovation. Additionally, cultural background plays a moderating role between an organization's performance and environmental innovation, and industrial diversity can moderate technological capability and environmental innovation. Finally, the size of an organization is shown to positively affect environmental innovation and is also moderated by cultural background.

Suggested Citation

  • Zhongju Liao & Yan Liu, 2021. "What drives environmental innovation? A meta‐analysis," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1852-1864, May.
    • Handle: RePEc:bla:bstrat:v:30:y:2021:i:4:p:1852-1864
    DOI: 10.1002/bse.2720
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    References listed on IDEAS

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    2. Licheng Yang & Shijie Song & Chunlin Liu, 2024. "Green signals: The impact of environmental protection support policies on firms' green innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3258-3278, May.
    3. Li, Lingjia & Shan, Shuo & Dai, Jing & Che, Wen & Shou, Yongyi, 2022. "The impact of green supply chain management on green innovation: A meta-analysis from the inter-organizational learning perspective," International Journal of Production Economics, Elsevier, vol. 250(C).
    4. Fabricia S. Rosa & Lorenzo Compagnucci & Rogerio J. Lunkes & Januário J. Monteiro, 2023. "Green innovation ecosystem and water performance in the food service industry: The effects of environmental management controls and digitalization," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5459-5476, December.
    5. Marcos Carchano & Inmaculada Carrasco & Ángela González, 2024. "Eco‐innovation and environmental performance: Insights from Spanish wine companies," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(2), pages 595-623, June.
    6. Liao, Zhongju & Chen, Jie & Chen, Xueli & Song, Malin, 2024. "Digital platform capability, environmental innovation quality, and firms’ competitive advantage: The moderating role of environmental uncertainty," International Journal of Production Economics, Elsevier, vol. 268(C).
    7. Ruifeng Hu & Weiqiao Xu & Yalin Yang & Guangxian Ni, 2024. "A Combined Scientometric and Meta-analysis Exploration of Eco-innovation: Evolution and Determinants," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 3174-3201, March.

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