IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i19p14258-d1248548.html
   My bibliography  Save this article

Institutional Pressures on Sustainability and Green Performance: The Mediating Role of Digital Business Model Innovation

Author

Listed:
  • Yi Liang

    (School of Foreign Languages, Neijiang Normal University, Neijiang 641100, China)

  • Chenyu Zhao

    (Neijiang Economic Cooperation and Development Bureau, Neijiang 641100, China)

  • Min-Jae Lee

    (Department of Global Business, Mokwon University, Daejeon 35349, Republic of Korea)

Abstract

The purpose of this study is to examine the mediating role of digital business model innovation (DBMI) in the relationship between institutional pressures (i.e., regulation and normative pressures) on sustainability and green performance. To verify our hypotheses, we performed the structural equation model as an analytical technique using 396 datasets from firms listed on the China Stock Exchange. The structural results showed that institutional pressures had a positive effect on DBMI, and that DBMI had a significant effect on green performance. The analysis also supports the full mediation role of DBMI between institutional pressures and green performance. We believe that our findings contribute to ongoing knowledge by enriching institutional perspectives on sustainable management and providing managers with practical implications on how to drive DBMI.

Suggested Citation

  • Yi Liang & Chenyu Zhao & Min-Jae Lee, 2023. "Institutional Pressures on Sustainability and Green Performance: The Mediating Role of Digital Business Model Innovation," Sustainability, MDPI, vol. 15(19), pages 1-14, September.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:19:p:14258-:d:1248548
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/19/14258/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/19/14258/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sanjay Kumar Singh & Manlio Del Giudice & Charbel Jose Chiappetta Jabbour & Hengky Latan & Amrik Singh Sohal, 2022. "Stakeholder pressure, green innovation, and performance in small and medium‐sized enterprises: The role of green dynamic capabilities," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 500-514, January.
    2. Ilse Hellemans & Amanda J. Porter & Damla Diriker, 2022. "Harnessing digitalization for sustainable development: Understanding how interactions on sustainability‐oriented digital platforms manage tensions and paradoxes," Business Strategy and the Environment, Wiley Blackwell, vol. 31(2), pages 668-683, February.
    3. Vinit Parida & David Sjödin & Wiebke Reim, 2019. "Reviewing Literature on Digitalization, Business Model Innovation, and Sustainable Industry: Past Achievements and Future Promises," Sustainability, MDPI, vol. 11(2), pages 1-18, January.
    4. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    5. Jieqiong Yu & Carlos Wing‐Hung Lo & Pansy Hon Ying Li, 2017. "Organizational Visibility, Stakeholder Environmental Pressure and Corporate Environmental Responsiveness in China," Business Strategy and the Environment, Wiley Blackwell, vol. 26(3), pages 371-384, March.
    6. Pick, James B. & Nishida, Tetsushi, 2015. "Digital divides in the world and its regions: A spatial and multivariate analysis of technological utilization," Technological Forecasting and Social Change, Elsevier, vol. 91(C), pages 1-17.
    7. Manu Sharma & Anil Kumar & Sunil Luthra & Sudhanshu Joshi & Arvind Upadhyay, 2022. "The impact of environmental dynamism on low‐carbon practices and digital supply chain networks to enhance sustainable performance: An empirical analysis," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1776-1788, May.
    8. Frondel, Manuel & Horbach, Jens & Rennings, Klaus, 2008. "What triggers environmental management and innovation? Empirical evidence for Germany," Ecological Economics, Elsevier, vol. 66(1), pages 153-160, May.
    9. Steve Evans & Doroteya Vladimirova & Maria Holgado & Kirsten Van Fossen & Miying Yang & Elisabete A. Silva & Claire Y. Barlow, 2017. "Business Model Innovation for Sustainability: Towards a Unified Perspective for Creation of Sustainable Business Models," Business Strategy and the Environment, Wiley Blackwell, vol. 26(5), pages 597-608, July.
    10. Rehfeld, Katharina-Maria & Rennings, Klaus & Ziegler, Andreas, 2007. "Integrated product policy and environmental product innovations: An empirical analysis," Ecological Economics, Elsevier, vol. 61(1), pages 91-100, February.
    11. Ekman, Peter & Röndell, Jimmie & Kowalkowski, Christian & Raggio, Randle D. & Thompson, Steven M., 2021. "Emergent market innovation: A longitudinal study of technology-driven capability development and institutional work," Journal of Business Research, Elsevier, vol. 124(C), pages 469-482.
    12. Defeng Yang & Aric Xu Wang & Kevin Zheng Zhou & Wei Jiang, 2019. "Environmental Strategy, Institutional Force, and Innovation Capability: A Managerial Cognition Perspective," Journal of Business Ethics, Springer, vol. 159(4), pages 1147-1161, November.
    13. Scott R. Colwell & Ashwin W. Joshi, 2013. "Corporate Ecological Responsiveness: Antecedent Effects of Institutional Pressure and Top Management Commitment and Their Impact on Organizational Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 22(2), pages 73-91, February.
    14. Yan-Leung Cheung & Dongmin Kong & Weiqiang Tan & Wenming Wang, 2015. "Being Good When Being International in an Emerging Economy: The Case of China," Journal of Business Ethics, Springer, vol. 130(4), pages 805-817, September.
    15. Eiadat, Yousef & Kelly, Aidan & Roche, Frank & Eyadat, Hussein, 2008. "Green and competitive? An empirical test of the mediating role of environmental innovation strategy," Journal of World Business, Elsevier, vol. 43(2), pages 131-145, March.
    16. Jonas Soluk & Ivan Miroshnychenko & Nadine Kammerlander & Alfredo De Massis, 2021. "Family Influence and Digital Business Model Innovation: The Enabling Role of Dynamic Capabilities," Entrepreneurship Theory and Practice, , vol. 45(4), pages 867-905, July.
    17. Sohrabpour, Vahid & Oghazi, Pejvak & Toorajipour, Reza & Nazarpour, Ali, 2021. "Export sales forecasting using artificial intelligence," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    18. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    19. Shanyong Wang & Jun Li & Dingtao Zhao, 2018. "Institutional Pressures and Environmental Management Practices: The Moderating Effects of Environmental Commitment and Resource Availability," Business Strategy and the Environment, Wiley Blackwell, vol. 27(1), pages 52-69, January.
    20. Suhong Li & Thomas Ngniatedema & Fang Chen, 2017. "Understanding the Impact of Green Initiatives and Green Performance on Financial Performance in the US," Business Strategy and the Environment, Wiley Blackwell, vol. 26(6), pages 776-790, September.
    21. Tao Zhao & Jung-Mo Koo & Min-Jae Lee, 2022. "How Firms Can Improve Sustainable Performance on Belt and Road Initiative," Sustainability, MDPI, vol. 14(21), pages 1-14, October.
    22. von Briel, Frederik, 2018. "The future of omnichannel retail: A four-stage Delphi study," Technological Forecasting and Social Change, Elsevier, vol. 132(C), pages 217-229.
    23. Christine Oliver, 1997. "Sustainable competitive advantage: combining institutional and resource‐based views," Strategic Management Journal, Wiley Blackwell, vol. 18(9), pages 697-713, October.
    24. Brunnermeier, Smita B. & Cohen, Mark A., 2003. "Determinants of environmental innovation in US manufacturing industries," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 278-293, March.
    25. Roy, Abhik & Walters, Peter G. P. & Luk, Sherriff T. K., 2001. "Chinese puzzles and paradoxes: conducting business research in China," Journal of Business Research, Elsevier, vol. 52(2), pages 203-210, May.
    26. Tang, Ailie K.Y. & Lai, Kee-hung & Cheng, T.C.E., 2016. "A Multi-research-method approach to studying environmental sustainability in retail operations," International Journal of Production Economics, Elsevier, vol. 171(P3), pages 394-404.
    27. ElMassah, Suzanna & Mohieldin, Mahmoud, 2020. "Digital transformation and localizing the Sustainable Development Goals (SDGs)," Ecological Economics, Elsevier, vol. 169(C).
    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. Michaela Hausdorf, 2024. "What You Get Is What You See—The Mutual Relationships between Images of Human Nature and Business Model Innovation," Sustainability, MDPI, vol. 16(3), pages 1-15, February.
    2. Yalin Jiang & Wei Cai & Yu Wang, 2024. "Change starts within: does managerial ability matter to green innovation?," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, 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. Qiang Zhang & Xiumei Zhu & Min-Jae Lee, 2024. "Exploring Institutional Pressures, Green Innovation, and Sustainable Performance: Examining the Mediated Moderation Role of Entrepreneurial Orientation," Sustainability, MDPI, vol. 16(5), pages 1-20, March.
    2. Vitaliy Roud & Thomas Wolfgang Thurner, 2018. "The Influence of State‐Ownership on Eco‐Innovations in Russian Manufacturing Firms," Journal of Industrial Ecology, Yale University, vol. 22(5), pages 1213-1227, October.
    3. Chang, Kuo-Hsiung & Gotcher, Donald F., 2020. "How and when does co-production facilitate eco-innovation in international buyer-supplier relationships? The role of environmental innovation ambidexterity and institutional pressures," International Business Review, Elsevier, vol. 29(5).
    4. Yu Zhang & Yajuan Wang, 2022. "Do Managerial Ties Help or Hinder Corporate Green Innovation? The Moderating Roles of Contextual Factors," IJERPH, MDPI, vol. 19(7), pages 1-19, March.
    5. Zhunxin Huang & Zengrui Xiao, 2023. "Dynamic Capabilities, Environmental Management Capabilities, Stakeholder Pressure and Eco-Innovation of Chinese Manufacturing Firms: A Moderated Mediation Model," Sustainability, MDPI, vol. 15(9), pages 1-22, May.
    6. Jana Hojnik, 2017. "In Pursuit of Eco-innovation," UPP Monograph Series, University of Primorska Press, number 978-961-7023-53-4.
    7. Pinget, Amandine, 2016. "Spécificités des déterminants des innovations environnementales : une approche appliquée aux PME [Specificities of determinants for environmental innovation : an approach applied to SMEs]," MPRA Paper 80108, University Library of Munich, Germany.
    8. Ghisetti, Claudia & Marzucchi, Alberto & Montresor, Sandro, 2015. "The open eco-innovation mode. An empirical investigation of eleven European countries," Research Policy, Elsevier, vol. 44(5), pages 1080-1093.
    9. Forcadell, Francisco Javier & Úbeda, Fernando & Aracil, Elisa, 2021. "Effects of environmental corporate social responsibility on innovativeness of spanish industrial SMEs✰,✰✰,★,★★," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    10. Venugopal Gopalakrishna-Remani & Robert Paul Jones & Kerri M. Camp, 2019. "Levels of EMR Adoption in U.S. Hospitals: An Empirical Examination of Absorptive Capacity, Institutional Pressures, Top Management Beliefs, and Participation," Information Systems Frontiers, Springer, vol. 21(6), pages 1325-1344, December.
    11. Wiebke Reim & David Sjödin & Vinit Parida, 2021. "Circular business model implementation: A capability development case study from the manufacturing industry," Business Strategy and the Environment, Wiley Blackwell, vol. 30(6), pages 2745-2757, September.
    12. Joana Costa, 2021. "Carrots or Sticks: Which Policies Matter the Most in Sustainable Resource Management?," Resources, MDPI, vol. 10(2), pages 1-21, February.
    13. Giulio Cainelli & Massimiliano Mazzanti & Sandro Montresor, 2012. "Environmental Innovations, Local Networks and Internationalization," Industry and Innovation, Taylor & Francis Journals, vol. 19(8), pages 697-734, November.
    14. Maria Rosa De Giacomo & Raimund Bleischwitz, 2020. "Business models for environmental sustainability: Contemporary shortcomings and some perspectives," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3352-3369, December.
    15. Patricia Laurens & Christian Le Bas & Stéphane Lhuillery & Antoine Schoen, 2017. "The determinants of cleaner energy innovations of the world’s largest firms: the impact of firm learning and knowledge capital," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 26(4), pages 311-333, May.
    16. Borghesi, Simone & Cainelli, Giulio & Mazzanti, Massimiliano, 2012. "Brown Sunsets and Green Dawns in the Industrial Sector: Environmental Innovations, Firm Behavior and the European Emission Trading," Climate Change and Sustainable Development 121701, Fondazione Eni Enrico Mattei (FEEM).
    17. Ancillai, Chiara & Sabatini, Andrea & Gatti, Marco & Perna, Andrea, 2023. "Digital technology and business model innovation: A systematic literature review and future research agenda," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    18. Nikunj Kumar Jain & Abinash Panda & Piyush Choudhary, 2020. "Institutional pressures and circular economy performance: The role of environmental management system and organizational flexibility in oil and gas sector," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3509-3525, December.
    19. Andreas Ziegler, 2008. "Disentangling Specific Subsets of Innovations : A Micro-Econometric Analysis of their Determinants," CER-ETH Economics working paper series 08/100, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    20. Giulio Cainelli & Massimiliano Mazzanti & Simone Borghesi, 2012. "The European Emission Trading Scheme and environmental innovation diffusion: Empirical analyses using Italian CIS data," Working Papers 201201, University of Ferrara, Department of Economics.

    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:15:y:2023:i:19:p:14258-:d:1248548. 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.