Smog risk perception, corporate social responsibility, and green innovation: evidence from China

Abstract

Purpose The purpose of this study is to investigate the main effect of top executive smog risk perception on green innovation and to examine the mediating role of corporate social responsibility (CSR) in the positive relationship between smog risk perception and green innovation along with the moderating role of smog knowledge. Design/methodology/approach A theoretical framework is developed based on the upper echelons theory to argue that top executive smog risk perception can be closely related to green innovation. Hierarchical analysis is conducted using a sample of eight firms in China. Findings Hypothesis testing indicates that physical health risk perception and mental health risk perception positively affect green innovation, and that these effects are positively mediated by CSR. In addition, smog knowledge moderates the relationship between physical health risk perception and green innovation. Research limitations/implications The findings extend current studies on green innovation by highlighting the role of top executives’ perceptions beyond studying top executives’ attributes. The findings suggest that top executives should actively respond to smog pollution and fulfill CSR. Originality/value Previous studies have suggested that top executives’ demographic characteristics are the determining factors of green innovation. This empirical paper fills a gap in the literature by exploring the impact of top executive smog risk perception on green innovation within the framework of the upper echelons theory.