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Facing the challenge of environmental degradation in China, a growing number of firms have begun to integrate environmental management systems into their business strategies and develop green innovation strategies. Based on the stakeholder theory, this paper attempts to explore the influences of stakeholders on the implementation of green process and green product innovation. Empirical results show that foreign customers play a significant role in driving companies to adopt strategy of green process and green product innovation. For foreign‐invested enterprises, the effect is limited to the adoption of green process innovation. It further reveals that community stakeholders and regulatory stakeholders have no significant effect on the corporate green process and green product innovation. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.

The relationship between ISO 14001 certification and corporate environmental performance has become an important research topic in recent years. Based on the internalization process of ISO 14001 (the process that consolidates and embeds a firm's beliefs, attitudes, and values into its management and employees), this paper examines how internalization can impact on the corporate environmental performance. It is found that the internalization process of ISO 14001 serves an important role in mediating the relationship between ISO 14001 certification and environmental performance. The results also reveal that the internal motivation is the main driving force of internalizing ISO 14001. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.

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