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Eco-Innovation Determination based on Structural Equation Modeling: Identifying the Mediation and Moderation Effect

Author

Listed:
  • Ma Ding
  • Ye Jianmu

    (Wuhan University of Technology)

Abstract

The motivation of enterprise eco-innovation is always an intriguing topic for policy makers, regulators, and scholars. Utilizing the rationale of institutional theory, stakeholder theory as well as upper echelons theory, this study devises a conceptualized model in explaining eco- innovation and uses questionnaire data from 288 enterprises in Wuhan city to test the hypothetical model through Structural Equation Modeling analysis. The study reveals that both institutional/stakeholder force and organizational force are significant triggers in enterprise eco- innovation, as the latter one mediates the effect of the former one. Supervisory support does not strengthen the relationship between institutional/stakeholder force and firm eco-innovation, yet weakens the relationship between organizational driver and eco-innovation. Conclusions imply that firm should prepare in terms of technological capability, scientific or social networking, resource base and specificity to better embrace eco-innovation, whereas governments should commit to optimize its regulation setting, law enforcement and various administrative and economic instruments to better incentivize enterprises to engage in eco-innovations

Suggested Citation

  • Ma Ding & Ye Jianmu, 2015. "Eco-Innovation Determination based on Structural Equation Modeling: Identifying the Mediation and Moderation Effect," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 1(3), pages 17-29, February.
    • Handle: RePEc:mgs:ijmsba:v:1:y:2015:i:3:p:17-29
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    Keywords

    Eco-Innovation; Innovation Drivers; Mediation Effect; Moderation Effect; Structural Equation Modeling;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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