Does organisational capital influence environmental strategies? Evidence from environmental innovation

Muhammad Nadeem, Stephen Bahadar, Rashid Zaman, Muhammad Bilal Farooq

Research output: Contribution to journalArticlepeer-review

19 Citations (Scopus)

Abstract

As a result of increasing consumer awareness and stakeholder demands about environmental management, firms face stricter challenges surrounding the impact of business operations on the environment. In this regards, environmental innovation is one of the important ways of acting in harmony with the environment. Thus, the purpose of this study is to examine the impact of organisational capital on environmental innovation measured as the process innovation and product innovation. Using environmental innovation data from ASSET4 for the US listed firms between 2002 and 2018, our empirical results reveal a significant positive association between organisational capital and both the process innovation and product innovation. Furthermore, the relationship is stronger in high-profitability and sensitive industries subsamples. These results are robust to additional control variables and endogeneity tests. This study, while endorsing the resource-based view (RBV), provides important implications for the top management teams that organisational capital could be an important channel through which managers can boost environmental innovation.

Original languageEnglish
Pages (from-to)4121-4135
Number of pages15
JournalBusiness Strategy and the Environment
Volume30
Issue number8
DOIs
Publication statusPublished - Dec 2021
Externally publishedYes

Keywords

  • environmental innovation
  • environmental strategies
  • organisational capital
  • resource-based view

ASJC Scopus subject areas

  • Business and International Management
  • Geography, Planning and Development
  • Strategy and Management
  • Management, Monitoring, Policy and Law

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