IDEAS home Printed from https://ideas.repec.org/a/wly/corsem/v27y2020i5p2016-2027.html
   My bibliography  Save this article

The influence of responsible leadership on environmental innovation and environmental performance: The moderating role of managerial discretion

Author

Listed:
  • Zhongju Liao
  • Manting Zhang

Abstract

Based on stakeholder and upper‐echelon theories and following the logic of “leadership‐behavior‐performance,” this study constructs a model to investigate the relationships between responsible leadership, managerial discretion, environmental innovation, and firm's environmental performance. This study analyzed a sample of survey responses from 208 manufacturing firms. The results show that the three dimensions of responsible leadership (relationship building, relational governance, and sharing orientation) have a positive effect on incremental environmental innovation; relational governance and sharing orientation have a positive effect on radical environmental innovation; both incremental and radical environmental innovation have a positive effect on a firm's environmental performance; and finally, managerial discretion plays a significant and positive moderating role in the relationships between sharing orientation and incremental and radical environmental innovation, and between relational governance and radical environmental innovation.

Suggested Citation

  • Zhongju Liao & Manting Zhang, 2020. "The influence of responsible leadership on environmental innovation and environmental performance: The moderating role of managerial discretion," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(5), pages 2016-2027, September.
    • Handle: RePEc:wly:corsem:v:27:y:2020:i:5:p:2016-2027
    DOI: 10.1002/csr.1942
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/csr.1942
    Download Restriction: no
    File URL: https://libkey.io/10.1002/csr.1942?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. Craig Crossland & Donald C. Hambrick, 2007. "How national systems differ in their constraints on corporate executives: a study of CEO effects in three countries," Strategic Management Journal, Wiley Blackwell, vol. 28(8), pages 767-789, August.
    2. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    3. Carrión-Flores, Carmen E. & Innes, Robert, 2010. "Environmental innovation and environmental performance," Journal of Environmental Economics and Management, Elsevier, vol. 59(1), pages 27-42, January.
    4. Christian Voegtlin, 2011. "Development of a Scale Measuring Discursive Responsible Leadership," Journal of Business Ethics, Springer, vol. 98(1), pages 57-73, January.
    5. Rennings, Klaus & Ziegler, Andreas & Ankele, Kathrin & Hoffmann, Esther, 2006. "The influence of different characteristics of the EU environmental management and auditing scheme on technical environmental innovations and economic performance," Ecological Economics, Elsevier, vol. 57(1), pages 45-59, April.
    6. Thomas Maak & Nicola M. Pless & Christian Voegtlin, 2016. "Business Statesman or Shareholder Advocate? CEO Responsible Leadership Styles and the Micro-Foundations of Political CSR," Journal of Management Studies, Wiley Blackwell, vol. 53(3), pages 463-493, May.
    7. Kammerer, Daniel, 2009. "The effects of customer benefit and regulation on environmental product innovation.: Empirical evidence from appliance manufacturers in Germany," Ecological Economics, Elsevier, vol. 68(8-9), pages 2285-2295, June.
    8. Fitjar, Rune Dahl & Rodríguez-Pose, Andrés, 2013. "Firm collaboration and modes of innovation in Norway," Research Policy, Elsevier, vol. 42(1), pages 128-138.
    9. Thomas Maak & Nicola M. Pless, 2006. "Responsible Leadership in a Stakeholder Society – A Relational Perspective," Journal of Business Ethics, Springer, vol. 66(1), pages 99-115, June.
    10. Yu-Shan Chen & Ching-Hsun Chang & Yu-Hsien Lin, 2014. "The Determinants of Green Radical and Incremental Innovation Performance: Green Shared Vision, Green Absorptive Capacity, and Green Organizational Ambidexterity," Sustainability, MDPI, vol. 6(11), pages 1-20, November.
    11. Marco Cucculelli & Valentina Peruzzi & Alberto Zazzaro, 2019. "Relational capital in lending relationships: evidence from European family firms," Small Business Economics, Springer, vol. 52(1), pages 277-301, January.
    12. Zhongju Liao, 2018. "Institutional pressure, knowledge acquisition and a firm's environmental innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 849-857, November.
    13. Shibin Sheng & Kevin Zheng Zhou & Julie Juan Li & Zhaoyang Guo, 2018. "Institutions and opportunism in buyer–supplier exchanges: the moderated mediating effects of contractual and relational governance," Journal of the Academy of Marketing Science, Springer, vol. 46(6), pages 1014-1031, November.
    14. Min-Seong Kim & Brijesh Thapa, 2018. "Relationship of Ethical Leadership, Corporate Social Responsibility and Organizational Performance," Sustainability, MDPI, vol. 10(2), pages 1-16, February.
    15. Chiou, Tzu-Yun & Chan, Hing Kai & Lettice, Fiona & Chung, Sai Ho, 2011. "The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 822-836.
    16. Hart, Oliver, 1995. "Corporate Governance: Some Theory and Implications," Economic Journal, Royal Economic Society, vol. 105(430), pages 678-689, May.
    17. Anna Grandori, 2006. "Innovation, Uncertainty and Relational Governance," Industry and Innovation, Taylor & Francis Journals, vol. 13(2), pages 127-133.
    18. Adam B. Jaffe & Karen Palmer, 1997. "Environmental Regulation And Innovation: A Panel Data Study," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 610-619, November.
    19. Robert D. Dewar & Jane E. Dutton, 1986. "The Adoption of Radical and Incremental Innovations: An Empirical Analysis," Management Science, INFORMS, vol. 32(11), pages 1422-1433, November.
    20. Nicola Pless, 2007. "Understanding Responsible Leadership: Role Identity and Motivational Drivers," Journal of Business Ethics, Springer, vol. 74(4), pages 437-456, September.
    21. Thomas M Maak & Nicola M Pless & Christian Voegtlin, 2016. "Business Statesman or Shareholder Advocate? CEO Responsible Leadership Styles and the Micro-Foundations of Political CSR," Post-Print hal-01480535, HAL.
    22. Tze San Ong & Ah Suat Lee & Boon Heng Teh & Hussain Bakhsh Magsi, 2019. "Environmental Innovation, Environmental Performance and Financial Performance: Evidence from Malaysian Environmental Proactive Firms," Sustainability, MDPI, vol. 11(12), pages 1-18, June.
    23. Thomas Maak, 2007. "Responsible Leadership, Stakeholder Engagement, and the Emergence of Social Capital," Journal of Business Ethics, Springer, vol. 74(4), pages 329-343, September.
    24. Moh. Bahzar, 2019. "Effects of Green Transformational and Ethical Leadership on Green Creativity, Eco-Innovation and Energy Efficiency in Higher Education Sector of Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 408-414.
    Full references (including those not matched with items on IDEAS)

    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. 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.
    2. Cheng, Ken & Wei, Feng & Lin, Yinghui, 2019. "The trickle-down effect of responsible leadership on unethical pro-organizational behavior: The moderating role of leader-follower value congruence," Journal of Business Research, Elsevier, vol. 102(C), pages 34-43.
    3. Carla Freire & Joana Gonçalves, 2021. "The Relationship between Responsible Leadership and Organizational Citizenship Behavior in the Hospitality Industry," Sustainability, MDPI, vol. 13(9), pages 1-16, April.
    4. Xinyue Zhang & Dian Li & Xintong Guo, 2022. "Antecedents of Responsible Leadership: Proactive and Passive Responsible Leadership Behavior," Sustainability, MDPI, vol. 14(14), pages 1-22, July.
    5. Sylvelin Foldøy & Trude Furunes & Åse Helene Bakkevig Dagsland & Annie Haver, 2021. "Responsibility beyond the Board Room? A Systematic Review of Responsible Leadership: Operationalizations, Antecedents and Outcomes," Sustainability, MDPI, vol. 13(18), pages 1-41, September.
    6. Chu-Mei Liu & Chieh-Peng Lin, 2018. "Assessing the effects of responsible leadership and ethical conflict on behavioral intention," Review of Managerial Science, Springer, vol. 12(4), pages 1003-1024, October.
    7. Ru-Jen Lin & Rong-Huei Chen & Thao-Minh Ho, 2013. "Market Demand, Green Innovation, and Firm Performance: Evidence from Hybrid Vehicle Industry," Diversity, Technology, and Innovation for Operational Competitiveness: Proceedings of the 2013 International Conference on Technology Innovation and Industrial Management,, ToKnowPress.
    8. Tulika M. Varma, 2021. "Responsible Leadership and Reputation Management During a Crisis: The Cases of Delta and United Airlines," Journal of Business Ethics, Springer, vol. 173(1), pages 29-45, September.
    9. Shuai Shao & Zhigao Hu & Jianhua Cao & Lili Yang & Dabo Guan, 2020. "Environmental Regulation and Enterprise Innovation: A Review," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1465-1478, March.
    10. Thomas M Maak & Nicola M Pless & Christian Voegtlin, 2016. "Business Statesman or Shareholder Advocate? CEO Responsible Leadership Styles and the Micro-Foundations of Political CSR," Post-Print hal-01480535, HAL.
    11. Anna-Mari Simunaniemi & Mira Valkjärvi & Riikka Franzén & Sari Liikala & Jaana Tähtinen & Kati Suomi & Jaana Jeminen, 2023. "Microentrepreneurs as Socially Responsible Leaders," South Asian Journal of Business and Management Cases, , vol. 12(1), pages 14-30, April.
    12. Bilal Afsar & Ahsen Maqsoom & Asad Shahjehan & Sajjad Ahmad Afridi & Adnan Nawaz & Hassan Fazliani, 2020. "Responsible leadership and employee's proenvironmental behavior: The role of organizational commitment, green shared vision, and internal environmental locus of control," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 297-312, January.
    13. K. V. James & R. G. Priyadarshini, 2021. "Responsible Leadership: A New Paradigm for Organizational Sustainability," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 46(4), pages 452-470, November.
    14. Jana Hojnik, 2017. "In Pursuit of Eco-innovation," UPP Monograph Series, University of Primorska Press, number 978-961-7023-53-4.
    15. Muzhar Javed & Muhammad Amir Rashid & Ghulam Hussain & Hafiz Yasir Ali, 2020. "The effects of corporate social responsibility on corporate reputation and firm financial performance: Moderating role of responsible leadership," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(3), pages 1395-1409, May.
    16. 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.
    17. Gutsche, Gunnar & Ziegler, Andreas, 2019. "Determinants of environmental product and process innovations: New evidence on the basis of European panel data," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203617, Verein für Socialpolitik / German Economic Association.
    18. Dhekra Ben Amara & Hong Chen, 2021. "Evidence for the Mediating Effects of Eco-Innovation and the Impact of Driving Factors on Sustainable Business Growth of Agribusiness," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 22(3), pages 251-266, September.
    19. Brouhle, Keith & Graham, Brad & Harrington, Donna Ramirez, 2013. "Innovation under the Climate Wise program," Resource and Energy Economics, Elsevier, vol. 35(2), pages 91-112.
    20. Antonella Biscione & Raul Caruso & Annunziata de Felice, 2021. "Environmental innovation in European transition countries," Applied Economics, Taylor & Francis Journals, vol. 53(5), pages 521-535, January.

    More about this item

    Statistics

    Access and download statistics

    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:wly:corsem:v:27:y:2020:i:5:p:2016-2027. 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: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1535-3966 .

    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.