Environmental Innovation Strategy and Organizational Performance: Enabling and Controlling Uses of Management Control Systems

Wijethilake, Chaminda; Munir, Rahat; Appuhami, Ranjith

doi:10.1007/s10551-016-3259-7

Cited by 116 publications

(155 citation statements)

References 85 publications

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“…Because CER is the embodiment of the integration of environmental protection into corporate strategic management, it is also the embodiment of the demand for green products by stakeholders. Proactive environmental strategies and management should integrate with corporate innovation to make environmental sustainability efforts as a realistic activity (Wijethilake, Munir, & Appuhami, 2018). Environmental strategies reflect how managers perceive the importance of CER and balance the costs and benefits of corporate innovation (Gröschl, Gabaldón, & Hahn, 2017).…”

Section: Cer and Corporate Innovationmentioning

confidence: 99%

Does corporate environmental responsibility engagement affect firm value? The mediating role of corporate innovation

Liao

Albitar³

2019

Bus Strat Env

352

214

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This paper aims to construct a comprehensive corporate environmental responsibility (CER) engagement measurement to examine the relationship between CER engagement and firm value as well as explore the mediating effect of corporate innovation on this relationship based on a sample of 496 China's A‐share listed companies from 2008 to 2016. The results show that when firms start to adopt environmental regulations, CER would have a negative effect on firm value; however, at a specific level, CER would start to enhance firm value positively. In addition to this, corporate innovation plays a mediating role in the relationship between CER and firm value. Corporate innovation promotes firm value of firms with CER more than firms without CER. Overall, the findings of this paper are extremely relevant for the government, investors, and firm's managers and can be utilized for policy and investment decision making. Also, the findings encourage firms to enhance their sense of environmental responsibility in order to enhance their competitive advantages, enhance corporate innovation capabilities, and thus enhance firm value.

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Section: Cer and Corporate Innovationmentioning

confidence: 99%

Does corporate environmental responsibility engagement affect firm value? The mediating role of corporate innovation

Liao

Albitar³

2019

Bus Strat Env

352

214

View full text Add to dashboard Cite

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“…SCS can be seen as a strand of MCS, which includes sustainability planning, environmental budgeting, sustainability performance measurement systems, sustainability balanced scorecard, environmental investment appraisal and so forth (see Gond et al, 2012 for detail). In particular, SCS are mainly used to design and implement sustainability‐related strategies (Wijethilake, Munir, & Appuhami, 2018). However, some researchers argue that MCS impede organisational learning (see Batac & Carassus, 2009).…”

Section: Introductionmentioning

confidence: 99%

Market drivers of sustainability and sustainability learning capabilities: The moderating role of sustainability control systems

Wijethilake

Upadhaya

2020

Bus Strat Env

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This study examines (i) the impact of market drivers of sustainability on the adoption of sustainability learning capabilities and (ii) the moderating role of sustainability control systems (SCS) on the relationship between market drivers of sustainability and sustainability learning capabilities. Drawing on the levers of control framework, stakeholder theory and organisational learning literature, survey data were collected from 175 large scale local and multinational companies operating in Sri Lanka. Findings reveal that market drivers of sustainability have a significant positive impact on sustainability learning capabilities. Whereas the interactive use of SCS shows a positive moderating impact, the diagnostic use of SCS shows a negative impact. The study enhances our understanding of (i) the influence of market drivers of sustainability on the adoption of sustainability learning capabilities and (ii) the use of SCS in enabling sustainability learning capabilities. The study reveals novel insights for managers responding to changing market drivers of sustainability, on how to (re)align different uses of SCS to enable sustainability learning capabilities.

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“…Compared with traditional innovation, eco‐innovation emphasizes the firms' mitigation of negative impacts on the natural environment. Extant research defines eco‐innovation strategy in the context of the adoption of manufacturing or environmental practices (Eiadt et al, ; González‐Benito & González‐Benito, ; Yu, Ramanathan, & Nath, ) and the propensity toward sustainability innovation (Wijethilake, Munir, & Appuhami, ). These definitions are directed towards the pursuit of environmental benefits; accordingly, this study refers to eco‐innovation strategy as the decision making done by a firm in the scope of environmental benefits to react to the changing reality (e.g., environmental pressures).…”

Section: Introductionmentioning

confidence: 99%

Innovation intensity, creativity enhancement, and eco‐innovation strategy: The roles of customer demand and environmental regulation

2018

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This study develops a contingency framework to investigate how and when innovation intensity and creativity enhancement affect a firm's eco-innovation strategy by drawing upon the perspectives of the resource-based view and stakeholder theory.This investigation aims to explore whether firms with high innovation intensity and creativity enhancement really pursue eco-innovation strategy. Our examination is based on a sample of 2,126 manufacturing firms. By using a hierarchical regression, the results reveal that the effects of innovation intensity and creativity enhancement on eco-innovation strategy depend on customer demand and environmental regulation. Specifically, customer demand positively moderates the effects of innovation intensity and creativity enhancement on eco-innovation strategy, whereas existing regulation has a weaker effect on the relationship between innovation activities and eco-innovation strategy than that of anticipated regulation.

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Environmental Innovation Strategy and Organizational Performance: Enabling and Controlling Uses of Management Control Systems

Cited by 116 publications

References 85 publications

Does corporate environmental responsibility engagement affect firm value? The mediating role of corporate innovation

Does corporate environmental responsibility engagement affect firm value? The mediating role of corporate innovation

Market drivers of sustainability and sustainability learning capabilities: The moderating role of sustainability control systems

Innovation intensity, creativity enhancement, and eco‐innovation strategy: The roles of customer demand and environmental regulation

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