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The Mediating Role of Environmental Innovation on Knowledge Acquisition and Corporate Performance Relationship—A Study of SMEs in China

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  • Ying Guo

    (School of Management, Northwestern Polytechnical University, Xi’an 710072, China)

  • Lifang Wang

    (School of Management, Northwestern Polytechnical University, Xi’an 710072, China)

  • Miao Wang

    (School of Management, Northwestern Polytechnical University, Xi’an 710072, China)

  • Xiaodi Zhang

    (School of Management, Northwestern Polytechnical University, Xi’an 710072, China)

Abstract

Open innovation theory believes that external knowledge acquisition is the key to gaining competitive advantage. This research aimed to examine the relationship between external knowledge acquisition, environmental innovation, and performance of small and medium-sized enterprises (SMEs). This study divides the external knowledge acquisition of enterprises into external technical knowledge acquisition and external market knowledge acquisition, and examines this theoretical framework with environmental innovation as a mediator. Using a sample of 416 Chinese SMEs, empirical results revealed that high levels of technical knowledge acquisition and market knowledge acquisition were positively related to SMEs’ performance. The positive impact of technical knowledge acquisition is mainly embodied through economic performance; the positive impact of market knowledge acquisition is mainly embodied through environment performance. Meanwhile, environmental innovation plays a significant mediating role in the relationship between external knowledge acquisition and enterprise performance; environmental performance plays a significant mediating role in the relationship between environmental innovation and economic performance. This paper provides several managerial implications for managers and policy makers to improve SMEs’ performance.

Suggested Citation

  • Ying Guo & Lifang Wang & Miao Wang & Xiaodi Zhang, 2019. "The Mediating Role of Environmental Innovation on Knowledge Acquisition and Corporate Performance Relationship—A Study of SMEs in China," Sustainability, MDPI, vol. 11(8), pages 1-18, April.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:8:p:2315-:d:223728
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    4. Omar Carrasco-Carvajal & Mauricio Castillo-Vergara & Domingo García-Pérez-de-Lema, 2023. "Measuring open innovation in SMEs: an overview of current research," Review of Managerial Science, Springer, vol. 17(2), pages 397-442, February.
    5. Jamshed Raza & Yuxin Liu & Jianwei Zhang & Nan Zhu & Zohaib Hassan & Habib Gul & Sikander Hussain, 2021. "Sustainable Supply Management Practices and Sustainability Performance: The Dynamic Capability Perspective," SAGE Open, , vol. 11(1), pages 21582440211, March.
    6. Petra Andries & Ute Stephan, 2019. "Environmental Innovation and Firm Performance: How Firm Size and Motives Matter," Sustainability, MDPI, vol. 11(13), pages 1-17, June.
    7. Ji Yeon Yang & Taewoo Roh, 2019. "Open for Green Innovation: From the Perspective of Green Process and Green Consumer Innovation," Sustainability, MDPI, vol. 11(12), pages 1-18, June.
    8. 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.
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