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Profiting from Green Innovation: The Moderating Effect of Competitive Strategy

Author

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  • Jiawen Chen

    (School of Management, Jinan University, Guangzhou 510632, China)

  • Linlin Liu

    (School of Business Administration, South China University of Technology, Guangzhou 510651, China
    College of Business, City University of Hong Kong, Kowloon 999077, Hong Kong, China)

Abstract

Despite the importance of green innovation, empirical evidence on its relationship with firm performance is mixed. This study endeavors to address this inconsistency in the evidence by investigating the value-capturing role of competitive strategy. It argues that firms tend to choose appropriate a competitive strategy to maximize performance of green innovation, especially in highly competitive contexts. We collected data from 195 firms in China. Our results suggest that the performance implications of green innovation (including green product innovation and green process innovation) are moderated by competitive strategies (including differentiation strategy and cost-leadership strategy), and these moderating effects are more prominent when competitive intensity is high. The findings of this study enrich theoretical understanding both of green innovation and of competitive strategy and have practical implications for green innovation management.

Suggested Citation

  • Jiawen Chen & Linlin Liu, 2018. "Profiting from Green Innovation: The Moderating Effect of Competitive Strategy," Sustainability, MDPI, vol. 11(1), pages 1-23, December.
    • Handle: RePEc:gam:jsusta:v:11:y:2018:i:1:p:15-:d:192031
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