Does resource slack promote or constrain firm environmental management investment? Moderating roles of technology sources

Zhang, Feng; Chen, Jiawen; Zhu, Lei; Liu, Linlin

doi:10.1080/14783363.2021.1882843

Cited by 7 publications

(5 citation statements)

References 101 publications

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“…This finding enriches the research on the economic consequences of environmental regulation and provides new ideas for promoting the green development of enterprises. Second, our study broke through the limitations of the previous literature on corporate environmental investment from the perspective of corporate governance and resource constraints (Fryxell and Lo, 2003;Zhang et al, 2022) and found that environmental penalties force firms to engage in environmental governance activities. However, based on the motivation of legitimacy, firms focus on terminal governance by purchasing or modifying environmental equipment rather than increasing investment in green innovation, which is a root governance behavior.…”

Section: Introductionmentioning

confidence: 85%

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Penalties vs. Subsidies: A Study on Which Is Better to Promote Corporate Environmental Governance

Zhong

Gan

et al. 2022

Front. Environ. Sci.

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To reverse the trend of ecological environment deterioration, the government tries to stimulate firms to participate in environmental governance through environmental regulation. Then, which environmental regulation tools can better drive firms to carry out environmental governance activities needs to be corroborated by empirical studies. Using a sample consisting of Chinese A-shares listed firms from 2015 to 2019, this article investigated the effects of two heterogeneous environmental regulation tools (environmental penalties and environmental subsidies) and their interactions on corporate environmental investment. The results showed that environmental penalties have a positive impact on corporate environmental investment. Furthermore, the heavier the penalty or the higher the administrative level of the penalty subject, the more pronounced is the impact of environmental penalties on corporate environmental investment. Firms that receive environmental subsidies do not increase their investment in environmental governance. A series of robustness tests further verify that penalties have a greater impact on the environment than subsidies. In addition, it is found that environmental penalties have an environmental deterrent effect on other firms in the same industry. Our work presents evidence for the economic consequences of environmental regulation and supplements the mechanism of environmental regulation affecting corporate environmental governance. Meanwhile, this article also provides essential guidance for the positive role of environmental penalties in driving corporate environmental governance and has important practical significance for emerging market countries to choose appropriate environmental regulation tools to promote corporate green development.

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Section: Introductionmentioning

confidence: 85%

“…Resource dependence theory suggests that firms need sufficient financial support to undertake environmental responsibility (Zhang et al, 2022). In recent years, environmental performance has played an increasingly important role in the evaluation of Chinese government officials.…”

Section: Crowding-in Effectmentioning

confidence: 99%

Penalties vs. Subsidies: A Study on Which Is Better to Promote Corporate Environmental Governance

Zhong

Gan

et al. 2022

Front. Environ. Sci.

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Section: The Role Of Resource Slack In the Adoption Of Sustainable Hrmmentioning

confidence: 99%

“…Second, the availability of slack resources is likely to endow firms with the discretion to afford and commit resources to sustainability (Arora & Dharwadkar, 2011; Nair & Bhattacharyya, 2019; F. Zhang et al, 2022), especially in less positive institutional contexts. In weak institutions, firms may gain a sustainable competitive advantage by using their internal resources to satisfy social expectations and enhance their corporate reputation (Oliver, 1997).…”

Section: Literature Review and Theoretical Backgroundmentioning

confidence: 99%

When firms adopt sustainable human resource management: A fuzzy‐set analysis

Jia

Yuan

Wei

et al. 2023

Human Resource Management

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Sustainable human resource management (HRM) is critical to sustainable corporate development. However, there is little systematic research examining the determinants of sustainable HRM adoption. We fill this void by identifying and introducing a configurational approach to examine when firms adopt sustainable HRM. Based on institutional theory, we develop a typology of institutional contexts associated with sustainable HRM adoption. We posit that institutional conditions in configuration facilitate firms' adoption of sustainable HRM. Thus, we hypothesize a primary institutional configuration where institutional support, institutional quality, and institutional infrastructure combine to promote the adoption of sustainable HRM. We further propose alternative types of configurations conducive to the adoption of sustainable HRM by introducing two organizational conditions: strategic leadership support and resource slack. A fuzzy‐set qualitative comparative analysis on data from 57 cases in China supports our hypotheses. We find that the combination of institutional conditions promotes the adoption of highly sustainable HRM, and the two alternative types provide functional substitutes for the primary type: (a) strategic leadership support substitutes for the combination of institutional support and institutional infrastructure, and (b) resource slack substitutes for institutional infrastructure. We build an institutional configurational model to advance a holistic understanding of the theoretical drivers of sustainable HRM, contributing to the research on sustainable HRM, institutional theory, leadership, and resource slack.

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“…Additionally, an abundance of slack makes managers overconfident but less motivated for competitive actions (Debruyne et al, 2010; Kim et al, 2008). For instance, Zhang et al (2022) show that firms become reluctant to invest in environmental management activities when they are equipped with excessive slack.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

How does the economic policy uncertainty affect the relationship between financial slack and firm performance in emerging countries?

2022

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This study investigates the moderating effect of economic policy uncertainty (EPU) on the relationship between slack resources and firm performance in emerging countries. By using 47,523 firm‐year observations from seven emerging market economies through the period of 2010–2018, the results show an inverse U‐shaped relationship between slack resources and firm performance. The findings also demonstrate that EPU acts as a negative moderator for the slack–performance relationship. In high EPU environments, the marginal benefit from one additional unit of slack is smaller relative to low EPU environments. This study contributes to the slack resources‐firm performance literature by emphasizing the role of the broader external environment as a moderator.

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Does resource slack promote or constrain firm environmental management investment? Moderating roles of technology sources

Cited by 7 publications

References 101 publications

Penalties vs. Subsidies: A Study on Which Is Better to Promote Corporate Environmental Governance

Penalties vs. Subsidies: A Study on Which Is Better to Promote Corporate Environmental Governance

When firms adopt sustainable human resource management: A fuzzy‐set analysis

How does the economic policy uncertainty affect the relationship between financial slack and firm performance in emerging countries?

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