IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v12y2022i1p21582440211061354.html
   My bibliography  Save this article

Environmental Entrepreneurial Orientation and Firm Performance: The Role of Environmental Innovation and Stakeholder Pressure

Author

Listed:
  • Ying Guo
  • Lifang Wang

Abstract

In response to the deterioration of the global environment, more and more firms are adopting eco-friendly strategies such as an environmental entrepreneurial orientation. We use the resource-based view of the firm and stakeholder theory to examine how environmental entrepreneurial orientation improves firm performance. We construct and test a moderated mediation model using survey data from 416 Chinese firms and find that environmental innovation mediates the positive effect of environmental entrepreneurial orientation on firm performance, stakeholder pressure positively moderates the influence of environmental entrepreneurial orientation on environmental innovation, and environmental entrepreneurial orientation influences firm performance through environmental innovation. This study makes theoretical contributions to the literature and provides management insights.

Suggested Citation

  • Ying Guo & Lifang Wang, 2022. "Environmental Entrepreneurial Orientation and Firm Performance: The Role of Environmental Innovation and Stakeholder Pressure," SAGE Open, , vol. 12(1), pages 21582440211, February.
    • Handle: RePEc:sae:sagope:v:12:y:2022:i:1:p:21582440211061354
    DOI: 10.1177/21582440211061354
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/21582440211061354
    Download Restriction: no
    File URL: https://libkey.io/10.1177/21582440211061354?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Marlen Gabriele Arnold & Kai Hockerts, 2011. "The greening dutchman: Philips' process of green flagging to drive sustainable innovations," Business Strategy and the Environment, Wiley Blackwell, vol. 20(6), pages 394-407, September.
    2. Andreas Rauch & Johan Wiklund & G.T. Lumpkin & Michael Frese, 2009. "Entrepreneurial Orientation and Business Performance: An Assessment of past Research and Suggestions for the Future," Entrepreneurship Theory and Practice, , vol. 33(3), pages 761-787, May.
    3. Nurlan Orazalin & Mady Baydauletov, 2020. "Corporate social responsibility strategy and corporate environmental and social performance: The moderating role of board gender diversity," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(4), pages 1664-1676, July.
    4. Yu-Shan Chen, 2008. "The Driver of Green Innovation and Green Image – Green Core Competence," Journal of Business Ethics, Springer, vol. 81(3), pages 531-543, September.
    5. Mingfeng Tang & Grace Walsh & Daniel Lerner & Markus A. Fitza & Qiaohua Li, 2018. "Green Innovation, Managerial Concern and Firm Performance: An Empirical Study," Business Strategy and the Environment, Wiley Blackwell, vol. 27(1), pages 39-51, January.
    6. Kristel Buysse & Alain Verbeke, 2003. "Proactive environmental strategies: a stakeholder management perspective," Strategic Management Journal, Wiley Blackwell, vol. 24(5), pages 453-470, May.
    7. Leonidas C. Leonidou & Paul Christodoulides & Lida P. Kyrgidou & Daydanda Palihawadana, 2017. "Internal Drivers and Performance Consequences of Small Firm Green Business Strategy: The Moderating Role of External Forces," Journal of Business Ethics, Springer, vol. 140(3), pages 585-606, February.
    8. Yu-Shan Chen & Shyh-Bao Lai & Chao-Tung Wen, 2006. "The Influence of Green Innovation Performance on Corporate Advantage in Taiwan," Journal of Business Ethics, Springer, vol. 67(4), pages 331-339, September.
    9. Ying Guo & LiFang Wang & Yanyu Chen, 2020. "Green Entrepreneurial Orientation and Green Innovation: The Mediating Effect of Supply Chain Learning," SAGE Open, , vol. 10(1), pages 21582440198, January.
    10. Jung Wan Lee & Young Min Kim & Young Ei Kim, 2018. "Antecedents of Adopting Corporate Environmental Responsibility and Green Practices," Journal of Business Ethics, Springer, vol. 148(2), pages 397-409, March.
    11. Rennings, Klaus, 2000. "Redefining innovation -- eco-innovation research and the contribution from ecological economics," Ecological Economics, Elsevier, vol. 32(2), pages 319-332, February.
    12. Anna Katharina Provasnek & Erwin Schmid & Bernhard Geissler & Gerald Steiner, 2017. "Sustainable Corporate Entrepreneurship: Performance and Strategies Toward Innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 26(4), pages 521-535, May.
    13. Yuan Li & Zelong Wei & Yi Liu, 2010. "Strategic Orientations, Knowledge Acquisition, and Firm Performance: The Perspective of the Vendor in Cross‐Border Outsourcing," Journal of Management Studies, Wiley Blackwell, vol. 47(8), pages 1457-1482, December.
    14. Donbesuur, Francis & Boso, Nathaniel & Hultman, Magnus, 2020. "The effect of entrepreneurial orientation on new venture performance: Contingency roles of entrepreneurial actions," Journal of Business Research, Elsevier, vol. 118(C), pages 150-161.
    15. 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.
    16. Leonidas C. Leonidou & Paul Christodoulides & Lida P. Kyrgidou & Dayananda Palihawadana, 2017. "Erratum to: Internal Drivers and Performance Consequences of Small Firm Green Business Strategy: The Moderating Role of External Forces," Journal of Business Ethics, Springer, vol. 140(3), pages 607-607, February.
    17. Johan Wiklund & DEAN Shepherd, 2003. "Knowledge‐based resources, entrepreneurial orientation, and the performance of small and medium‐sized businesses," Strategic Management Journal, Wiley Blackwell, vol. 24(13), pages 1307-1314, December.
    18. Marta Pinzone & Emanuele Lettieri & Cristina Masella, 2015. "Proactive Environmental Strategies in Healthcare Organisations: Drivers and Barriers in Italy," Journal of Business Ethics, Springer, vol. 131(1), pages 183-197, September.
    19. Sylvia Maxfield, 2008. "Reconciling Corporate Citizenship and Competitive Strategy: Insights from Economic Theory," Journal of Business Ethics, Springer, vol. 80(2), pages 367-377, June.
    20. Jean-Marie Courrent & Sonia Chassé & Waleed Omri, 2016. "Do entrepreneurial SMEs perform better because they are more responsible?," Post-Print hal-02010656, HAL.
    21. Ching-Hsun Chang, 2011. "The Influence of Corporate Environmental Ethics on Competitive Advantage: The Mediation Role of Green Innovation," Journal of Business Ethics, Springer, vol. 104(3), pages 361-370, December.
    22. Elisa Alt & Emilio Díez-de-Castro & Francisco Lloréns-Montes, 2015. "Linking Employee Stakeholders to Environmental Performance: The Role of Proactive Environmental Strategies and Shared Vision," Journal of Business Ethics, Springer, vol. 128(1), pages 167-181, April.
    23. 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.
    24. Johanna Gast & Katherine Gundolf & Beate Cesinger, 2017. "Doing business in a green way: A systematic review of the ecological sustainability entrepreneurship literature and future research directions," Post-Print hal-02008555, HAL.
    25. Mark Groza & Mya Pronschinske & Matthew Walker, 2011. "Perceived Organizational Motives and Consumer Responses to Proactive and Reactive CSR," Journal of Business Ethics, Springer, vol. 102(4), pages 639-652, September.
    26. Dennis P. Slevin & Siri A. Terjesen, 2011. "Entrepreneurial Orientation: Reviewing Three Papers and Implications for Further Theoretical and Methodological Development," Entrepreneurship Theory and Practice, , vol. 35(5), pages 973-987, September.
    27. Eliza Sharma, 2019. "A review of corporate social responsibility in developed and developing nations," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(4), pages 712-720, July.
    28. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    29. repec:bla:jomstd:v:47:y:2010:i:s2:p:1457-1482 is not listed on IDEAS
    30. Stefan Schaltegger & Marcus Wagner, 2011. "Sustainable entrepreneurship and sustainability innovation: categories and interactions," Business Strategy and the Environment, Wiley Blackwell, vol. 20(4), pages 222-237, May.
    31. Yongbin Zhao & Yuan Li & Soo Hoon Lee & Long Bo Chen, 2011. "Entrepreneurial Orientation, Organizational Learning, and Performance: Evidence from China," Entrepreneurship Theory and Practice, , vol. 35(2), pages 293-317, March.
    32. Clemens, Bruce, 2006. "Economic incentives and small firms: Does it pay to be green?," Journal of Business Research, Elsevier, vol. 59(4), pages 492-500, April.
    33. Martine Spence & Jouhaina Ben Boubaker Gherib & Viviane Ondoua Biwolé, 2011. "Sustainable Entrepreneurship: Is Entrepreneurial will Enough? A North–South Comparison," Journal of Business Ethics, Springer, vol. 99(3), pages 335-367, March.
    34. Wiklund, Johan & Shepherd, Dean, 2005. "Entrepreneurial orientation and small business performance: a configurational approach," Journal of Business Venturing, Elsevier, vol. 20(1), pages 71-91, January.
    35. Ekawee Vaitoonkiat & Peerayuth Charoensukmongkol, 2020. "Stakeholder orientation’s contribution to firm performance," Management Research Review, Emerald Group Publishing Limited, vol. 43(7), pages 863-883, February.
    36. Chaminda Wijethilake & Rahat Munir & Ranjith Appuhami, 2018. "Environmental Innovation Strategy and Organizational Performance: Enabling and Controlling Uses of Management Control Systems," Journal of Business Ethics, Springer, vol. 151(4), pages 1139-1160, September.
    37. Horbach, Jens, 2008. "Determinants of environmental innovation--New evidence from German panel data sources," Research Policy, Elsevier, vol. 37(1), pages 163-173, February.
    38. Rondinelli, Dennis & Berry, Michael, 2000. "Multimodal transportation, logistics, and the environment: managing interactions in a global economy," European Management Journal, Elsevier, vol. 18(4), pages 398-410, August.
    39. Andrew L. Friedman & Samantha Miles, 2002. "Developing Stakeholder Theory," Journal of Management Studies, Wiley Blackwell, vol. 39(1), pages 1-21, January.
    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. Ning Liu & Haiqing Hu & Zhaoqun Wang, 2022. "The Relationship between Institutional Pressure, Green Entrepreneurial Orientation, and Entrepreneurial Performance—The Moderating Effect of Network Centrality," Sustainability, MDPI, vol. 14(19), pages 1-24, September.
    2. Guo Ying, 2024. "Digital Entrepreneurial Orientation and Green Innovation in the VUCA Era: The Impact of Cross-organizational Improvisation and Social Ties," SAGE Open, , vol. 14(3), pages 21582440241, September.
    3. Muhammad Ishtiaq Ishaq & Huma Sarwar & Junaid Aftab & Simona Franzoni & Ali Raza, 2024. "Accomplishing sustainable performance through leaders' competencies, green entrepreneurial orientation, and innovation in an emerging economy: Moderating role of institutional support," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 1515-1532, February.
    4. Nattarinee Denlertchaikul & Pattanaporn Chatjuthamard & Pornsit Jiraporn & Piyachart Phiromswad, 2022. "The Interaction Effect of Text-Based Corporate Innovation and Economic Policy Uncertainty on Firm Performance," SAGE Open, , vol. 12(4), pages 21582440221, November.
    5. Ying Guo, 2023. "External Knowledge Acquisition and Green Innovation in Chinese Firms: Unveiling the Impact of Green Dynamic Capabilities," SAGE Open, , vol. 13(3), pages 21582440231, July.
    6. Efthymia Iliopoulou & Aspasia Vlachvei & Eirini Koronaki, 2024. "Environmental Drivers, Environmental Practices, and Business Performance: A Systematic Literature Review and Future Research Directions," Sustainability, MDPI, vol. 16(11), pages 1-27, June.
    7. Hana MaÅ¥ová & Miroslava Oravcová Triznová & Vladislav Kaputa & Erika LouÄ anová & Richard P. Vlosky, 2024. "Strategic Environmental Consumer Segmentation: An Exploratory Case Study in Slovakia," SAGE Open, , vol. 14(1), pages 21582440241, March.
    8. Md. Shajul Islam & Mohammad Rabiul Basher Rubel & Md. Mahedi Hasan, 2023. "Environmental and Social Performance of the Banking Industry in Bangladesh: Effect of Stakeholders’ Pressure and Green Practice Adoption," Sustainability, MDPI, vol. 15(11), pages 1-24, May.
    9. Resul Öztürk & Mehtap Öztürk & Zeynep Kızılkan, 2024. "Meta-Analysis of the Relationship Between Green Entrepreneurial Orientation and Sustainable Firm Performance," Sustainability, MDPI, vol. 16(24), pages 1-17, 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. Ying Guo, 2023. "External Knowledge Acquisition and Green Innovation in Chinese Firms: Unveiling the Impact of Green Dynamic Capabilities," SAGE Open, , vol. 13(3), pages 21582440231, July.
    2. Arnaldo Coelho & Jorge Ferreira & Catarina Proença, 2024. "The impact of green entrepreneurial orientation on sustainability performance through the effects of green product and process innovation: The moderating role of ambidexterity," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3184-3202, May.
    3. Chotia, Varun & Cheng, Yue & Agarwal, Reeti & Vishnoi, Sushant Kumar, 2024. "AI-enabled Green Business Strategy: Path to carbon neutrality via environmental performance and green process innovation," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    4. Feng Zhang & Lei Zhu, 2019. "Enhancing corporate sustainable development: Stakeholder pressures, organizational learning, and green innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1012-1026, September.
    5. 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.
    6. Jean-Marie Courrent & Sonia Chassé & Waleed Omri, 2018. "Do Entrepreneurial SMEs Perform Better Because They are More Responsible?," Journal of Business Ethics, Springer, vol. 153(2), pages 317-336, December.
    7. Tariq, Adeel & Badir, Yuosre F. & Tariq, Waqas & Bhutta, Umair Saeed, 2017. "Drivers and consequences of green product and process innovation: A systematic review, conceptual framework, and future outlook," Technology in Society, Elsevier, vol. 51(C), pages 8-23.
    8. Ying Guo & LiFang Wang & Yanyu Chen, 2020. "Green Entrepreneurial Orientation and Green Innovation: The Mediating Effect of Supply Chain Learning," SAGE Open, , vol. 10(1), pages 21582440198, January.
    9. Guo Ying, 2024. "Digital Entrepreneurial Orientation and Green Innovation in the VUCA Era: The Impact of Cross-organizational Improvisation and Social Ties," SAGE Open, , vol. 14(3), pages 21582440241, September.
    10. Morteza Akbari & Hamid Padash & Zahra Shahabaldini Parizi & Haniye Rezaei & Elmira Shahriari & Ala Khosravani, 2022. "A bibliometric review of green innovation research: identifying knowledge domain and network," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(6), pages 3993-4023, December.
    11. Lu Qiu & Die Hu & Yu Wang, 2020. "How do firms achieve sustainability through green innovation under external pressures of environmental regulation and market turbulence?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2695-2714, September.
    12. Yi‐Chun Huang & Li‐Ting Shih & Zhao‐Hong Cheng, 2024. "A multi‐level analysis of individual green entrepreneurial orientation: Evidence from Taiwan's environmental protection sectors," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3440-3462, May.
    13. 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.
    14. Imran Shafique & Masood Nawaz Kalyar & Nadia Mehwish, 2021. "Organizational ambidexterity, green entrepreneurial orientation, and environmental performance in SMEs context: Examining the moderating role of perceived CSR," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 446-456, January.
    15. Abdullah F. Alnaim & Nadia Abdelhamid Abdelmegeed Abdelwahed & Bahadur Ali Soomro, 2022. "Environmental Challenges and Green Innovation Strategy: A Vigorous Development of Greener Dynamics," Sustainability, MDPI, vol. 14(15), pages 1-18, August.
    16. Mitja Ruzzier & Evan J. Douglas & Maja Konečnik Ruzzier & Jana Hojnik, 2020. "International Entrepreneurial Orientation and the Intention to Internationalize," Sustainability, MDPI, vol. 12(14), pages 1-19, July.
    17. Andersén, Jim, 2021. "A relational natural-resource-based view on product innovation: The influence of green product innovation and green suppliers on differentiation advantage in small manufacturing firms," Technovation, Elsevier, vol. 104(C).
    18. Zhongfei Chen & Yu Xiao & Kangqi Jiang, 2023. "Corporate green innovation and stock liquidity in China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(S1), pages 1381-1415, April.
    19. Jana Hojnik, 2017. "In Pursuit of Eco-innovation," UPP Monograph Series, University of Primorska Press, number 978-961-7023-53-4.
    20. Francesco Calza & Adele Parmentola & Ilaria Tutore, 2017. "Types of Green Innovations: Ways of Implementation in a Non-Green Industry," Sustainability, MDPI, vol. 9(8), pages 1-16, July.

    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:sae:sagope:v:12:y:2022:i:1:p:21582440211061354. 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: SAGE Publications (email available below). General contact details of provider: .

    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.