Environmental Strategy, Institutional Force, and Innovation Capability: A Managerial Cognition Perspective

Despite the rising interest in environmental strategies, few studies have examined how managerial cognition of such strategies influences actual innovation capability development. Taking a managerial cognition perspective, this study investigates how managers’ perceptions of institutional pressures...

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Bibliographic Details
Authors: Yang, Defeng (Author) ; Wang, Aric Xu (Author) ; Zhou, Kevin Zheng (Author) ; Jiang, Wei (Author)
Format: Electronic Article
Language:English
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Published: Springer 2019
In: Journal of business ethics
Year: 2019, Volume: 159, Issue: 4, Pages: 1147-1161
Further subjects:B Government Intervention
B Managerial cognition
B China
B Institutional pressure
B Proactive environmental strategy
B Innovation capability
Online Access: Volltext (lizenzpflichtig)
Description
Summary:Despite the rising interest in environmental strategies, few studies have examined how managerial cognition of such strategies influences actual innovation capability development. Taking a managerial cognition perspective, this study investigates how managers’ perceptions of institutional pressures relate to their focus on proactive environmental strategy, which in turn affects firms’ realized innovation capability. The findings from a primary survey and three secondary datasets of publicly listed companies in China reveal that managers’ perceived business and social pressures are positively associated with their focus on proactive environmental strategy, which consequently fosters innovation capability development. Moreover, state ownership and government administrative control weaken the impact of managerial focus on proactive environmental strategy on innovation capability. These findings have important implications for how managerial cognition supports environmental strategy and organizational capability building under the influence of institutional pressures and government intervention.
ISSN:1573-0697
Contains:Enthalten in: Journal of business ethics
Persistent identifiers:DOI: 10.1007/s10551-018-3830-5