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Exploring the peer effect of green innovation within manufacturing enterprises

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  • Fang Liu
  • Chen Liang

Abstract

This study investigates the influence of peer firms on green technology innovation (GTI) practices within companies operating in analogous markets, with a particular focus on publicly listed manufacturing entities. We ascertain the magnitude of the peer effect (PE) on GTI through empirical analysis. Our results confirm the presence of a significant PE, highlighting that peer dynamics shape GTI levels. Furthermore, we delve into the decision‐making mechanisms underpinning this PE and uncover that internal and organizational environments mediate the relationship between peers and firms. Specifically, the mechanisms of industry performance, intellectual property protection, and environmental regulation emerge as salient factors that modulate the PE in GTI. These findings shed light on the determinants guiding enterprise GTI, offering recommendations for refining innovation processes, and shaping effective environmental governance policies.

Suggested Citation

  • Fang Liu & Chen Liang, 2024. "Exploring the peer effect of green innovation within manufacturing enterprises," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(2), pages 1104-1118, March.
    • Handle: RePEc:wly:mgtdec:v:45:y:2024:i:2:p:1104-1118
    DOI: 10.1002/mde.4057
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