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Environmental innovation practices and green product innovation performance: A perspective from organizational climate

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  • Wenhao Song
  • Guo‐Zheng Wang
  • Xifang Ma

Abstract

Green product innovation is critical to a firm's sustainability. Some studies have explored how to enhance a firm's green production innovation. In this research, we construct and test a research model for exploring the influence of environmental innovation practices (EIP) on green innovation performance, and we investigate the mechanisms underlying this relationship. Based on organizational creativity theory, we propose and test the hypothesis that EIP can affect creativity climate and green creativity, which in turn enhance green product innovation performance. Using survey data from 147 companies in China, we find that EIP directly and positively affect green creativity and indirectly influence green product innovation performance via green creativity. Thus, green creativity partially mediates the link between EIP and green product innovation performance. Our finding also indicates that creativity climate positively affect green creativity. Green product innovation performance is positively affected by creativity climate but not directly affected by EIP. The results further demonstrate that creativity climate fully mediates the link between EIP and green product innovation performance. Our findings suggest that firm' managers should shape the organizational creativity climate and encourage green creativity to enhance their firm's sustainability. Finally, we discuss the theoretical and practical implications, which can promote the firm's sustainability through environmental policy.

Suggested Citation

  • Wenhao Song & Guo‐Zheng Wang & Xifang Ma, 2020. "Environmental innovation practices and green product innovation performance: A perspective from organizational climate," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(1), pages 224-234, January.
    • Handle: RePEc:wly:sustdv:v:28:y:2020:i:1:p:224-234
    DOI: 10.1002/sd.1990
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    Cited by:

    1. Samuel Adomako & Nguyen Phong Nguyen, 2023. "Green creativity, responsible innovation, and product innovation performance: A study of entrepreneurial firms in an emerging economy," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4413-4425, November.
    2. Aamir Inam Bhutta & Muhammad Rizwan Ullah & Jahanzaib Sultan & Ahsan Riaz & Muhammad Fayyaz Sheikh, 2022. "Impact of Green Energy Production, Green Innovation, Financial Development on Environment Quality: A Role of Country Governance in Pakistan," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 316-326.
    3. Khwaja Naveed & Fahad Khalid & Cosmina Lelia Voinea, 2023. "Board gender diversity and corporate green innovation: An industry‐level institutional perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 755-772, March.
    4. Farzana Riva & Solon Magrizos & Mohammad Rabiul Basher Rubel, 2021. "Investigating the link between managers' green knowledge and leadership style, and their firms' environmental performance: The mediation role of green creativity," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3228-3240, November.
    5. Sultan Sikandar Mirza & Chengming Huang & Adnan Khan, 2024. "Managing CEO duality and economic uncertainty: strategies for aligning corporate sustainability and innovation in China’s energy market," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(5), pages 12815-12841, May.
    6. Qaisar Iqbal & Noor Hazlina Ahmad & Zeyun Li & Yongmei Li, 2022. "To walk in beauty: Sustainable leadership, frugal innovation and environmental performance," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(3), pages 738-750, April.
    7. Abdul Waheed & Qingyu Zhang & Yasir Rashid & Muhammad Sohail Tahir & Muhammad Wasif Zafar, 2020. "Impact of green manufacturing on consumer ecological behavior: Stakeholder engagement through green production and innovation," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(5), pages 1395-1403, September.
    8. 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.
    9. Haojun, Wang & Jiazhu, Li, 2024. "Professional experience of CEOs in industry associations and corporate green innovation-empirical evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 85(C).
    10. Rosa Maria Dangelico & Luca Fraccascia & Alberto Nastasi, 2020. "National culture's influence on environmental performance of countries: A study of direct and indirect effects," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(6), pages 1773-1786, November.
    11. Luu Trong Tuan, 2023. "Fostering green product innovation through green entrepreneurial orientation: The roles of employee green creativity, green role identity, and organizational transactive memory system," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 639-653, January.
    12. Jeremy Galbreath & Daniel Tisch, 2022. "Sustainable development in the wine industry: The impact of the natural environment and gender‐diverse leadership," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1869-1881, December.
    13. Ayman Issa & Mohammad A. A. Zaid, 2023. "Firm's biodiversity initiatives disclosure and board gender diversity: A multi‐country analysis of corporations operating in Europe," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4991-5007, November.
    14. Hoang Thu Thao & Xuemei Xie, 2024. "Fostering green innovation performance through open innovation strategies: do green subsidies work?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 18641-18671, July.
    15. Lan Gao & Feng Yang, 2023. "Do resource slack and green organizational climate moderate the relationships between institutional pressures and corporate environmental responsibility practices of SMEs in China?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(11), pages 13495-13520, November.

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