IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i21p12147-d671422.html
   My bibliography  Save this article

Strategic Orientation, Environmental Management Systems, and Eco-Innovation: Investigating the Moderating Effects of Absorptive Capacity

Author

Listed:
  • Chin-Hung Tseng

    (Department of Environmental Science and Engineering, Tunghai University, No.1727, Sec.4, Taiwan Boulevard, Xitun District, Taichung 40704, Taiwan)

  • Kuo-Hsiung Chang

    (Department of International Business, Tunghai University, No.1727, Sec.4, Taiwan Boulevard, Xitun District, Taichung 40704, Taiwan)

  • Ho-Wen Chen

    (Department of Environmental Science and Engineering, Tunghai University, No.1727, Sec.4, Taiwan Boulevard, Xitun District, Taichung 40704, Taiwan)

Abstract

Environmental management studies have proposed that firms can achieve substantial cost advantages over competitors and enhance their competitive positions by implementing an environmental management system (EMS). This study further investigates strategic orientation (customer, competitor, and innovation orientation) and focuses on the effect of strategic orientation on EMSs and eco-innovation; it also examines the mediating role of EMSs in the relationship between strategic orientation and eco-innovation. Furthermore, this study investigates the moderating role of absorptive capacity in the relationship between strategic orientation and EMSs. Reliability and validity analyses of a sample of 142 respondents indicated that the study design was effective, consistent, and reliable. The findings indicate that (1) strategic orientation (competitor and innovation orientation) positively influences EMSs, (2) EMSs positively influence eco-innovation, (3) absorptive capacity-enhancing strategic orientation positively influences EMSs, and (4) EMS intermediary strategic orientation positively influences eco-innovation. This study contributes to the theoretical understanding of why some firms exhibit greater proactivity in EMSs than others do.

Suggested Citation

  • Chin-Hung Tseng & Kuo-Hsiung Chang & Ho-Wen Chen, 2021. "Strategic Orientation, Environmental Management Systems, and Eco-Innovation: Investigating the Moderating Effects of Absorptive Capacity," Sustainability, MDPI, vol. 13(21), pages 1-14, November.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:21:p:12147-:d:671422
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/21/12147/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/21/12147/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Robert M. Grant, 1996. "Prospering in Dynamically-Competitive Environments: Organizational Capability as Knowledge Integration," Organization Science, INFORMS, vol. 7(4), pages 375-387, August.
    2. Salop, Steven C & Scheffman, David T, 1983. "Raising Rivals' Costs," American Economic Review, American Economic Association, vol. 73(2), pages 267-271, May.
    3. Jay B. Barney, 1986. "Strategic Factor Markets: Expectations, Luck, and Business Strategy," Management Science, INFORMS, vol. 32(10), pages 1231-1241, October.
    4. Julia Hertin & Frans Berkhout & Marcus Wagner & Daniel Tyteca, 2008. "Are EMS environmentally effective? The link between environmental management systems and environmental performance in European companies," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 51(2), pages 259-283.
    5. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    6. D Minbaeva & T Pedersen & I Björkman & C F Fey & H J Park, 2003. "MNC knowledge transfer, subsidiary absorptive capacity, and HRM," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(6), pages 586-599, November.
    7. Magali A. Delmas & Michael W. Toffel, 2008. "Organizational responses to environmental demands: opening the black box," Strategic Management Journal, Wiley Blackwell, vol. 29(10), pages 1027-1055, October.
    8. N. Venkatraman & John E. Prescott, 1990. "Environment‐strategy coalignment: An empirical test of its performance implications," Strategic Management Journal, Wiley Blackwell, vol. 11(1), pages 1-23, January.
    9. Chin-Hung Tseng & Kuo-Hsiung Chang & Ho-Wen Chen, 2019. "Strategic Orientation, Environmental Innovation Capability, and Environmental Sustainability Performance: The Case of Taiwanese Suppliers," Sustainability, MDPI, vol. 11(4), pages 1-19, February.
    10. Saeidi, Sayedeh Parastoo & Sofian, Saudah & Saeidi, Parvaneh & Saeidi, Sayyedeh Parisa & Saaeidi, Seyyed Alireza, 2015. "How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction," Journal of Business Research, Elsevier, vol. 68(2), pages 341-350.
    11. Yasuhumi Mori & Eric Welch, 2008. "The ISO 14001 environmental management standard in Japan: results from a national survey of facilities in four industries," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 51(3), pages 421-445.
    12. Calantone, Roger J. & Kim, Daekwan & Schmidt, Jeffrey B. & Cavusgil, S. Tamer, 2006. "The influence of internal and external firm factors on international product adaptation strategy and export performance: A three-country comparison," Journal of Business Research, Elsevier, vol. 59(2), pages 176-185, February.
    13. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    14. Coyne, Kevin P., 1986. "Sustainable competitive advantage--What it is, what it isn't," Business Horizons, Elsevier, vol. 29(1), pages 54-61.
    15. William Q. Judge & Thomas J. Douglas, 1998. "Performance Implications of Incorporating Natural Environmental Issues into the Strategic Planning Process: An Empirical Assessment," Journal of Management Studies, Wiley Blackwell, vol. 35(2), pages 241-262, March.
    16. Tripsas, Mary, 1997. "Surviving Radical Technological Change through Dynamic Capability: Evidence from the Typesetter Industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 6(2), pages 341-377, March.
    17. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and the Sustainability of Competitive Advantage: Reply," Management Science, INFORMS, vol. 35(12), pages 1514-1514, December.
    18. Richard Makadok & Jay B. Barney, 2001. "Strategic Factor Market Intelligence: An Application of Information Economics to Strategy Formulation and Competitor Intelligence," Management Science, INFORMS, vol. 47(12), pages 1621-1638, December.
    19. Michiel De Boer & Frans A. J. Van Den Bosch & Henk W. Volberda, 1999. "Managing Organizational Knowledge Integration in the Emerging Multimedia Complex," Journal of Management Studies, Wiley Blackwell, vol. 36(3), pages 379-398, May.
    20. Richard P. Rumelt, 1991. "How much does industry matter?," Strategic Management Journal, Wiley Blackwell, vol. 12(3), pages 167-185, March.
    21. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and Sustainability of Competitive Advantage," Management Science, INFORMS, vol. 35(12), pages 1504-1511, December.
    22. Paul Shrivastava, 1995. "Environmental technologies and competitive advantage," Strategic Management Journal, Wiley Blackwell, vol. 16(S1), pages 183-200.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Elizabeth Emperatriz García-Salirrosas & Ángel Acevedo-Duque, 2022. "PERVAINCONSA Scale to Measure the Consumer Behavior of Online Stores of MSMEs Engaged in the Sale of Clothing," Sustainability, MDPI, vol. 14(5), pages 1-16, February.
    2. 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).
    3. Marvello Yang & Norizan Jaafar & Abdullah Al Mamun & Anas A. Salameh & Noorshella Che Nawi, 2022. "Modelling the significance of strategic orientation for competitive advantage and economic sustainability: the use of hybrid SEM–neural network analysis," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-28, December.

    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. Jonathan H. Reed, 2022. "Operational and strategic change during temporary turbulence: evidence from the COVID-19 pandemic," Operations Management Research, Springer, vol. 15(1), pages 589-608, June.
    2. Suoniemi, Samppa & Terho, Harri & Zablah, Alex & Olkkonen, Rami & Straub, Detmar W., 2021. "The impact of firm-level and project-level it capabilities on CRM system quality and organizational productivity," Journal of Business Research, Elsevier, vol. 127(C), pages 108-122.
    3. Phebo D. Wibbens, 2021. "The role of competitive amplification in explaining sustained performance heterogeneity," Strategic Management Journal, Wiley Blackwell, vol. 42(10), pages 1769-1792, October.
    4. S. J. Fowler & C. Hope, 2007. "Incorporating sustainable business practices into company strategy," Business Strategy and the Environment, Wiley Blackwell, vol. 16(1), pages 26-38, January.
    5. Phebo D. Wibbens, 2023. "A formal framework for the RBV: Resource dynamics as a Markov process," Strategic Management Journal, Wiley Blackwell, vol. 44(6), pages 1562-1586, June.
    6. Mehmet Ali Köseoglu & John A. Parnell & Melissa Yan Yee Yick, 2021. "Identifying influential studies and maturity level in intellectual structure of fields: evidence from strategic management," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(2), pages 1271-1309, February.
    7. Olivier Chatain, 2014. "How do strategic factor markets respond to rivalry in the product market?," Strategic Management Journal, Wiley Blackwell, vol. 35(13), pages 1952-1971, December.
    8. James J. Chrisman & Alan Bauerschmidt & Charles W. Hofer, 1998. "The Determinants of New Venture Performance: An Extended Model," Entrepreneurship Theory and Practice, , vol. 23(1), pages 5-29, October.
    9. Alp Eren Yurtseven & Mehmet Teoman Pamukçu, 2022. "Innovation patterns in firms and intra-industry heterogeneity empirical evidence from Turkey," Evolutionary and Institutional Economics Review, Springer, vol. 19(2), pages 645-679, September.
    10. Wójcik Piotr, 2015. "Exploring Links Between Dynamic Capabilities Perspective and Resource-Based View: A Literature Overview," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 45(1), pages 83-107, March.
    11. Oguzhan Ozturk, 2021. "Bibliometric review of resource dependence theory literature: an overview," Management Review Quarterly, Springer, vol. 71(3), pages 525-552, July.
    12. Lei–Yu Wu & Chun–Ju Wang & Cheng–Ping Chen & Lee–Yun Pan, 2008. "Internal Resources, External Network, and Competitiveness during the Growth Stage: A Study of Taiwanese High–Tech Ventures1," Entrepreneurship Theory and Practice, , vol. 32(3), pages 529-549, May.
    13. Roland Bel, 2018. "A property rights theory of competitive advantage," Strategic Management Journal, Wiley Blackwell, vol. 39(6), pages 1678-1703, June.
    14. Montserrat Boronat-Navarro & Alexandra García-Joerger, 2019. "Ambidexterity, Alliances and Environmental Management System Adoption in Spanish Hotels," Sustainability, MDPI, vol. 11(20), pages 1-16, October.
    15. Robert P. Garrett Jr. & Jeffrey G. Covin, 2015. "Internal Corporate Venture Operations Independence and Performance: A Knowledge–Based Perspective," Entrepreneurship Theory and Practice, , vol. 39(4), pages 763-790, July.
    16. Luís Cabral, 2018. "We’re Number 1: Price Wars for Market Share Leadership," Management Science, INFORMS, vol. 64(5), pages 2013-2030, May.
    17. Wang, Chun-Ju & Wu, Lei-Yu, 2012. "Team member commitments and start-up competitiveness," Journal of Business Research, Elsevier, vol. 65(5), pages 708-715.
    18. David Gaddis Ross, 2012. "On Evaluation Costs in Strategic Factor Markets: The Implications for Competition and Organizational Design," Management Science, INFORMS, vol. 58(4), pages 791-804, April.
    19. Jeremy Galbreath & Chia‐Yang Chang & Daniel Tisch, 2023. "The impact of a proactive environmental strategy on environmentally sustainable practices in service firms: The moderating effect of information use value," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5420-5434, December.
    20. Jorge A. Arevalo & Deepa Aravind, 2017. "Strategic Outcomes in Voluntary CSR: Reporting Economic and Reputational Benefits in Principles-Based Initiatives," Journal of Business Ethics, Springer, vol. 144(1), pages 201-217, August.

    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:gam:jsusta:v:13:y:2021:i:21:p:12147-:d:671422. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.