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Environmental Regulation, Environmental Commitment, Sustainability Exploration/Exploitation Innovation, and Firm Sustainable Development

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  • Xinpeng Xing

    (School of Business, Jiangnan University, Wuxi 214122, China)

  • Tiansen Liu

    (School of Economics and Management, Harbin Engineering University, Harbin 150001, China)

  • Jianhua Wang

    (School of Business, Jiangnan University, Wuxi 214122, China
    Food Safety Research Base of Jiangsu Province, Jiangnan University, Wuxi 214122, China)

  • Lin Shen

    (School of Business, Jiangnan University, Wuxi 214122, China)

  • Yue Zhu

    (School of Management, Harbin Institute of Technology, Harbin 150001, China)

Abstract

The links among firms’ environmental regulation, innovation process, and sustainable development has been analyzed, but a research gap still remains in terms of environmental commitment and different types of sustainable innovation in firms’ sustainability. Through collecting a dataset of 380 valid respondents from Chinese manufacturing firms, this paper incorporates evironmental regulation, environmental commitment, sustainability exploration innovation, sustainability exploitation innovation, environmental performance, and business performance into a multiple mediating effect model. Our key emperical findings are as follows: (1) Environmental regulation not only cannot affect environmental performance and business performance, but also cannot affect the two types of firm performance through sustainability exploration innovation or sustainability exploitation innovation; (2) The relationship between environmental regulation, environmental performance (or business performance) is subsequently mediated by both environmental commitment and sustainability exploitation innovation; (3) Environmental regulation does not affect environmental performance (or business performance) through environmental commitment and sustainability exploration innovation. These results do, however, support the Porter Hypothesis in terms of revealing a new multiple mediating effect path dominated by environmental commitment and sustainability exploitation innovation. Our findings can provide a better understanding of how environmental commitment and sustainability exploitation innovation play a key effect in helping firms relieve the pressure from environmental regulation, and thus improve their environmental management while keeping their competitive edge.

Suggested Citation

  • Xinpeng Xing & Tiansen Liu & Jianhua Wang & Lin Shen & Yue Zhu, 2019. "Environmental Regulation, Environmental Commitment, Sustainability Exploration/Exploitation Innovation, and Firm Sustainable Development," Sustainability, MDPI, vol. 11(21), pages 1-20, October.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:21:p:6001-:d:281184
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