Innovation shock, outsourcing strategy, and environmental performance: The roles of prior green innovation experience and knowledge inheritance

Abstract

To investigate under what conditions an outsourcing strategy can show superior environmental performance, one stream of scholars has underscored the importance of prior green innovation experience, and another stream of scholars has underscored the importance of the in‐house possession of outsourced component knowledge. However, the empirical findings regarding the positive role of both scholarly streams when studied separately are mixed and sometimes contradictory. This study bridges these two distinct but related streams and suggests that prior green innovation experience and in‐house knowledge regarding outsourced components play a complementary role in enhancing environmental performance. The U.S. hybrid electric vehicle market lends support to the argument of this study. In so doing, this study increases our understanding of the role of prior green innovation experience and outsourced component knowledge on environmental performance while pursuing an outsourcing strategy. This study also provides guidance for managers and policymakers on how to achieve superior environmental performance in outsourcing.

An environmental policy of green intellectual capital: Green innovation strategy for performance sustainability

“…Green innovation may lead firms to find new ways of incorporating waste into saleable products that provide additional revenue (Bassetti et al, 2021). Thus, successful green innovation helps firms to increase efficiency and strengthen their core competences, which may eventually improve their economic performance (Khurshid et al, 2019).…”

Human resource slack, sustainable innovation, and environmental performance of small and medium‐sized enterprises in sub‐Saharan Africa

“…First, extant studies have failed to examine the underlying mechanism through which HR slack influences environmental performance in SMEs. Our paper, in contrast, sought to obtain evidence relevant to this question by investigating the potential role of sustainable innovation, which is strongly related to environmental performance (Carrión‐Flores & Innes, 2010; Khurshid, Park, & Chan, 2019; Long et al, 2017). This is an important line of inquiry because understanding the mechanism through which firm resources influence environmental performance in emerging markets is a crucial task because SMEs often lack resources to undertake environmental activities (Earnhart, Khanna, & Lyon, 2014).…”

A moderação do mimetismo no desempenho de ecoinovações

“…Yenipazarli, Vakharia and Bala (2020) highlight that eco-innovation in the use stage not only improves the environmental performance of the product in use, but it also increases product value for consumers by reducing the cost of use. Khurshid, Park and Chan. (2019) suggested that previous experience in ecoinnovation and knowledge on outsourcing play an important role in improving environmental performance.…”