IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i21p14312-d960850.html
   My bibliography  Save this article

Exploring the Link between Sustainable Development Practices, Institutional Pressures, and Green Innovation

Author

Listed:
  • Mansour Alyahya

    (The Saudi Investment Bank Scholarly Chair for Investment Awareness Studies, The Deanship of Scientific Research, The Vice Presidency for Graduate Studies and Scientific Research, Department of Marketing, King Faisal University, Al-Ahsa 31982, Saudi Arabia
    Management Department, College of Business Administration, King Faisal University, Al-Ahsa 31982, Saudi Arabia)

  • Meqbel Aliedan

    (The Saudi Investment Bank Scholarly Chair for Investment Awareness Studies, The Deanship of Scientific Research, The Vice Presidency for Graduate Studies and Scientific Research, Department of Marketing, King Faisal University, Al-Ahsa 31982, Saudi Arabia
    Management Department, College of Business Administration, King Faisal University, Al-Ahsa 31982, Saudi Arabia)

  • Gomaa Agag

    (Nottingham Business School, Nottingham Trent University, Nottingham NG1 4FQ, UK)

  • Ziad H. Abdelmoety

    (Marketing and Management Department, School of Business, University of Dundee, 1-3 Perth Rd., Dundee DD1 4JW, UK
    Business Admisntration Departemnt, Faculty of Commerce, Assiut Univeristy, Assiut 71515, Egypt)

Abstract

Academics, business leaders, and policymakers are paying more and more attention to sustainable development. The influence of external forces on sustainable development practices, which could predict green innovation, is, however, still unexplored. This paper seeks to explore the role of external pressures on sustainable development practices in the driving of green innovation in Saudi Arabia. We took a quantitative approach through an online survey to collect the required data from manufacturing companies in Saudi Arabia. Structural equation modelling was used to analyse the data. The results revealed that institutional pressures (i.e., governance pressure, customer pressures, and competitive pressure) are key drivers of sustainable development practices and green innovation. They also indicated that sustainable development practices (i.e., environmental sustainability, social sustainability, and economic environmental sustainability) have a significant influence on green innovation. Our findings lead us to propose that green innovation is influenced by external pressures and sustainable development practices.

Suggested Citation

  • Mansour Alyahya & Meqbel Aliedan & Gomaa Agag & Ziad H. Abdelmoety, 2022. "Exploring the Link between Sustainable Development Practices, Institutional Pressures, and Green Innovation," Sustainability, MDPI, vol. 14(21), pages 1-15, November.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:21:p:14312-:d:960850
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/21/14312/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/21/14312/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Horbach, Jens & Rammer, Christian & Rennings, Klaus, 2012. "Determinants of eco-innovations by type of environmental impact — The role of regulatory push/pull, technology push and market pull," Ecological Economics, Elsevier, vol. 78(C), pages 112-122.
    2. Ozlem Ayaz Arda & Erkan Bayraktar & Ekrem Tatoglu, 2019. "How do integrated quality and environmental management practices affect firm performance? Mediating roles of quality performance and environmental proactivity," Business Strategy and the Environment, Wiley Blackwell, vol. 28(1), pages 64-78, January.
    3. Beske, Philip & Land, Anna & Seuring, Stefan, 2014. "Sustainable supply chain management practices and dynamic capabilities in the food industry: A critical analysis of the literature," International Journal of Production Economics, Elsevier, vol. 152(C), pages 131-143.
    4. Acquaye, Adolf & Ibn-Mohammed, Taofeeq & Genovese, Andrea & Afrifa, Godfred A & Yamoah, Fred A & Oppon, Eunice, 2018. "A quantitative model for environmentally sustainable supply chain performance measurement," European Journal of Operational Research, Elsevier, vol. 269(1), pages 188-205.
    5. Chung-Leung Luk & Oliver H M Yau & Leo Y M Sin & Alan C B Tse & Raymond P M Chow & Jenny S Y Lee, 2008. "The effects of social capital and organizational innovativeness in different institutional contexts," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(4), pages 589-612, June.
    6. David G Hyatt & Nicholas Berente, 2017. "Substantive or Symbolic Environmental Strategies? Effects of External and Internal Normative Stakeholder Pressures," Business Strategy and the Environment, Wiley Blackwell, vol. 26(8), pages 1212-1234, December.
    7. Thi Tam Le & Thi Mai Anh Nguyen & Thi Thu Hien Phan, 2019. "Environmental Management Accounting and Performance Efficiency in the Vietnamese Construction Material Industry—A Managerial Implication for Sustainable Development," Sustainability, MDPI, vol. 11(19), pages 1-32, September.
    8. Ruxi Wang & Frank Wijen & Pursey P.M.A.R. Heugens, 2018. "Government's green grip: Multifaceted state influence on corporate environmental actions in China," Strategic Management Journal, Wiley Blackwell, vol. 39(2), pages 403-428, February.
    9. Mohsin Shahzad & Ying Qu & Abaid Ullah Zafar & Andrea Appolloni, 2021. "Does the interaction between the knowledge management process and sustainable development practices boost corporate green innovation?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 4206-4222, December.
    10. Naimatullah Shah & Bahadur Ali Soomro, 2021. "Internal green integration and environmental performance: The predictive power of proactive environmental strategy, greening the supplier, and environmental collaboration with the supplier," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1333-1344, February.
    11. Sidani, Yusuf & Al Ariss, Akram, 2014. "Institutional and corporate drivers of global talent management: Evidence from the Arab Gulf region," Journal of World Business, Elsevier, vol. 49(2), pages 215-224.
    12. Jing-Wen Huang & Yong-Hui Li, 2017. "Green Innovation and Performance: The View of Organizational Capability and Social Reciprocity," Journal of Business Ethics, Springer, vol. 145(2), pages 309-324, October.
    13. Veugelers, Reinhilde, 2012. "Which policy instruments to induce clean innovating?," Research Policy, Elsevier, vol. 41(10), pages 1770-1778.
    14. Aerts, Walter & Cormier, Denis & Magnan, Michel, 2006. "Intra-industry imitation in corporate environmental reporting: An international perspective," Journal of Accounting and Public Policy, Elsevier, vol. 25(3), pages 299-331.
    15. Dagmara Nawrocka, 2008. "Inter‐organizational use of EMSs in supply chain management: some experiences from Poland and Sweden," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 15(5), pages 260-269, September.
    16. Azhar Susanto & Meiryani Meiryani, 2019. "Antecedents of Environmental Management Accounting and Environmental Performance: Evidence from Indonesian Small and Medium Enterprises," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 401-407.
    17. Henk W. Volberda & Nicolai J. Foss & Marjorie A. Lyles, 2010. "PERSPECTIVE---Absorbing the Concept of Absorptive Capacity: How to Realize Its Potential in the Organization Field," Organization Science, INFORMS, vol. 21(4), pages 931-951, August.
    18. Liu, Yang & Zhu, Qinghua & Seuring, Stefan, 2017. "Linking capabilities to green operations strategies: The moderating role of corporate environmental proactivity," International Journal of Production Economics, Elsevier, vol. 187(C), pages 182-195.
    19. Bulent Menguc & Seigyoung Auh & Lucie Ozanne, 2010. "The Interactive Effect of Internal and External Factors on a Proactive Environmental Strategy and its Influence on a Firm's Performance," Journal of Business Ethics, Springer, vol. 94(2), pages 279-298, June.
    20. Singh, Sanjay Kumar & Chen, Jin & Del Giudice, Manlio & El-Kassar, Abdul-Nasser, 2019. "Environmental ethics, environmental performance, and competitive advantage: Role of environmental training," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 203-211.
    21. Franck Brulhart & Sandrine Gherra & Bertrand V. Quelin, 2019. "Do Stakeholder Orientation and Environmental Proactivity Impact Firm Profitability?," Journal of Business Ethics, Springer, vol. 158(1), pages 25-46, August.
    22. Wael Hassan El-Garaihy & Usama A. Badawi & Walid A. S. Seddik & M. Sh. Torky, 2022. "Investigating Performance Outcomes under Institutional Pressures and Environmental Orientation Motivated Green Supply Chain Management Practices," Sustainability, MDPI, vol. 14(3), pages 1-23, January.
    23. Carter, Craig R. & Kale, Rahul & Grimm, Curtis M., 2000. "Environmental purchasing and firm performance: an empirical investigation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 36(3), pages 219-228, September.
    24. Dipanjan Chatterjee & T. Ravichandran, 2013. "Governance of Interorganizational Information Systems: A Resource Dependence Perspective," Information Systems Research, INFORMS, vol. 24(2), pages 261-278, June.
    25. Virginia Barba-Sánchez & Carlos Atienza-Sahuquillo, 2016. "Environmental Proactivity and Environmental and Economic Performance: Evidence from the Winery Sector," Sustainability, MDPI, vol. 8(10), pages 1-15, October.
    26. Jatinder S. Sidhu & Harry R. Commandeur & Henk W. Volberda, 2007. "The Multifaceted Nature of Exploration and Exploitation: Value of Supply, Demand, and Spatial Search for Innovation," Organization Science, INFORMS, vol. 18(1), pages 20-38, February.
    27. He, Jie, 2010. "What is the role of openness for China's aggregate industrial SO2 emission?: A structural analysis based on the Divisia decomposition method," Ecological Economics, Elsevier, vol. 69(4), pages 868-886, February.
    28. Fazli Haleem & Sami Farooq & Yang Cheng & Brian Vejrum Waehrens, 2022. "Sustainable Management Practices and Stakeholder Pressure: A Systematic Literature Review," Sustainability, MDPI, vol. 14(4), pages 1-23, February.
    29. Olga Chkanikova & Oksana Mont, 2015. "Corporate Supply Chain Responsibility: Drivers and Barriers for Sustainable Food Retailing," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(2), pages 65-82, March.
    30. Xiangan Ding & Ying Qu & Mohsin Shahzad, 2019. "The Impact of Environmental Administrative Penalties on the Disclosure of Environmental Information," Sustainability, MDPI, vol. 11(20), pages 1-24, October.
    31. Francesco Calza & Giorgia Profumo & Ilaria Tutore, 2016. "Corporate Ownership and Environmental Proactivity," Business Strategy and the Environment, Wiley Blackwell, vol. 25(6), pages 369-389, September.
    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. Lyulyov, Oleksii & Pimonenko, Tetyana & Saura, Jose Ramon & Barbosa, Belem, 2024. "How do e-governance and e-business drive sustainable development goals?," Technological Forecasting and Social Change, Elsevier, vol. 199(C).
    2. Andrzej Pacana & Karolina Czerwińska, 2023. "A Quality Control Improvement Model That Takes into Account the Sustainability Concept and KPIs," Sustainability, MDPI, vol. 15(12), pages 1-21, June.
    3. Ling Hu & Tai-Wei Chang & Yue-Shi Lee & Show-Jane Yen & Chih-Wen Ting, 2023. "How Does Sustainable Leadership Affect Environmental Innovation Strategy Adoption? The Mediating Role of Environmental Identity," IJERPH, MDPI, vol. 20(1), pages 1-12, January.
    4. Sofia Gomes & Micaela Pinho & João M. Lopes, 2024. "From environmental sustainability practices to green innovations: Evidence from small and medium‐sized manufacturing companies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1677-1687, May.

    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. Naveed Iqbal Chaudhry & Muhammad Amir, 2020. "From institutional pressure to the sustainable development of firm: Role of environmental management accounting implementation and environmental proactivity," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3542-3554, December.
    2. Lixiang Wang & Weian Li & Lujun Qi, 2020. "Stakeholder Pressures and Corporate Environmental Strategies: A Meta-Analysis," Sustainability, MDPI, vol. 12(3), pages 1-16, February.
    3. Kuen‐Hung Tsai & Chi‐Tsun Huang & Zi‐Hyo Chen, 2020. "Understanding variation in the relationship between environmental management practices and firm performance across studies: A meta‐analytic review," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 547-565, February.
    4. A.D. Nuwan Gunarathne & Ki‐Hoon Lee & Pubudu K. Hitigala Kaluarachchilage, 2021. "Institutional pressures, environmental management strategy, and organizational performance: The role of environmental management accounting," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 825-839, February.
    5. Wu, Guo-Ciang & Ding, Jyh-Hong & Chen, Ping-Shun, 2012. "The effects of GSCM drivers and institutional pressures on GSCM practices in Taiwan’s textile and apparel industry," International Journal of Production Economics, Elsevier, vol. 135(2), pages 618-636.
    6. Daniela Ortiz‐Avram & Nelly Ovcharova & Alexander Engelmann, 2024. "Dynamic capabilities for sustainability: Toward a typology based on dimensions of sustainability‐oriented innovation and stakeholder integration," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 2969-3004, May.
    7. Kang Tan & Abu Bakkar Siddik & Farid Ahammad Sobhani & Muhammad Hamayun & Mohammad Masukujjaman, 2022. "Do Environmental Strategy and Awareness Improve Firms’ Environmental and Financial Performance? The Role of Competitive Advantage," Sustainability, MDPI, vol. 14(17), pages 1-24, August.
    8. Wei Jiang & Kui Wang & Kevin Zheng Zhou, 2023. "How Political Ties and Green Innovation Co-evolve in China: Alignment with Institutional Development and Environmental Pollution," Journal of Business Ethics, Springer, vol. 186(4), pages 739-760, September.
    9. Gu, Haoran & Yang, Shenggang & Xu, Zhaoyi & Cheng, Cheng, 2023. "Supply chain finance, green innovation, and productivity: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 78(C).
    10. Anupriya Sharma & Sapna A. Narula, 2020. "What motivates and inhibits Indian textile firms to embrace sustainability?," Asian Journal of Sustainability and Social Responsibility, Springer, vol. 5(1), pages 1-23, December.
    11. Febi Jensen & Hans Lööf & Andreas Stephan, 2020. "New ventures in Cleantech: Opportunities, capabilities and innovation outcomes," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 902-917, March.
    12. Stojčić, Nebojša, 2021. "Social and private outcomes of green innovation incentives in European advancing economies," Technovation, Elsevier, vol. 104(C).
    13. Md. Ahashan Habib & Md. Rezaul Karim & Marzia Dulal & Mohammad Shayekh Munir, 2022. "Impact of Institutional Pressure on Cleaner Production and Sustainable Firm Performance," Sustainability, MDPI, vol. 14(24), pages 1-25, December.
    14. Broccardo, Laura & Vola, Paola & Zicari, Adrian & Alshibani, Safiya Mukhtar, 2023. "Contingency-based analysis of the drivers and obstacles to a successful sustainable business model: Seeking the uncaptured value," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    15. Krieger, Bastian & Zipperer, Vera, 2022. "Does green public procurement trigger environmental innovations?," Research Policy, Elsevier, vol. 51(6).
    16. Yi Liu & Wenqian Li & Yuan Li, 2020. "Ambidexterity between low cost strategy and CSR strategy: contingencies of competition and regulation," Asia Pacific Journal of Management, Springer, vol. 37(3), pages 633-660, September.
    17. Marin, Giovanni & Vona, Francesco, 2023. "Finance and the reallocation of scientific, engineering and mathematical talent," Research Policy, Elsevier, vol. 52(5).
    18. Justin Doran & Geraldine Ryan, 2016. "The Importance of the Diverse Drivers and Types of Environmental Innovation for Firm Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 25(2), pages 102-119, February.
    19. Antonioli, Davide & Mazzanti, Massimiliano, 2017. "Towards a green economy through innovations: The role of trade union involvement," Ecological Economics, Elsevier, vol. 131(C), pages 286-299.
    20. Fosso Wamba, Samuel & Queiroz, Maciel M. & Trinchera, Laura, 2024. "The role of artificial intelligence-enabled dynamic capability on environmental performance: The mediation effect of a data-driven culture in France and the USA," International Journal of Production Economics, Elsevier, vol. 268(C).

    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:14:y:2022:i:21:p:14312-:d:960850. 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.