The Business Legitimacy and Its Relationship with the Corporate Social Responsibility: Analysis of Mexico and Spain Through the Case Method

Figueroa, Evaristo Galeana; Solano, Sandra Escamilla; Montoya, Dora Aguilasocho; Casado, Paola Plaza

doi:10.1007/978-3-319-75990-6_12

Cited by 2 publications

(2 citation statements)

References 73 publications

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“…These results confirm the organizational identity theory and the legitimacy theory in explaining green innovation performance. This study provides additional supports to several previous studies of Sharma et al (1999), Chen et al (2012), Chang and Chen (2013), Song and Yu (2017), Green et al (2012), , Lin et al (2014), Chen (2011), Kostova and Zaheer (1999) and Figueroa et al (2018).…”

Section: Contribution To Theorysupporting

confidence: 91%

“…Organizational legitimacy can help firms to achieve the congruence between firm activities and society expectations (Kostova and Zaheer, 1999). A study by Figueroa et al (2018) on three Mexican and five Spanish companies revealed that CSR and social legitimacy are positively associated with business results. The higher the legitimacy a firm has from stakeholders, the greater the firm can enjoy access to resources and support from those internal and external stakeholders so that the firm can make better green innovations (Chang and Chen, 2013).…”

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confidence: 99%

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Green innovation strategy and green innovation

2019

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Purpose The purpose of this paper is to explore whether green innovation strategy has a positive effect on green innovation. Furthermore, this study investigates whether both green organizational identity and environmental organizational legitimacy mediate the relationship between green innovation strategy and green innovation. Design/methodology/approach This study is designed as a quantitative research using questionnaires to collect data and employing a variance-based or partial least squares structural equation modeling to test the hypotheses. Findings The empirical results show that green innovation strategy positively affects green innovation. This study also demonstrates that green innovation strategy positively affects green innovation indirectly via green organizational identity and environmental organizational legitimacy in manufacturing companies in Indonesia as a developing country. This study suggests that firms should develop green innovation strategy and it must be reflected as green organizational identity to get environmental organizational legitimacy, and then firms will achieve a better green innovation performance. Research limitations/implications This study has the following limitations. First, a structural equation modeling is used as an approach to test the hypotheses and this may raise the issue of causality. Second, although examining the antecedents of green innovation, this study does not investigate its consequences. Third, the sample size used in this study is relatively small and limited to companies in the Surabaya Industrial Estate Rungkut, Indonesia. Finally, this study employs a cross-sectional survey and the data obtained are based on the Likert scales that may raise the issue of perception bias of the sampled managers. Practical implications The results of this study suggest that managers need to verify the roles of green organizational identity and environmental organizational legitimacy in their companies. In the era of environmentally conscious society, managers need to start with developing a green innovation strategy. However, managers also need to understand that having a strategy is not sufficient enough to directly enhance green innovation performance. Managers need to seek approaches on how to cultivate a strong green organizational identity and use the identity to get environmental organizational legitimacy from the stakeholders. Social implications This research model and results provide the empirical evidence of the importance of green innovation and its antecedents, namely, a green innovation strategy, green organizational identity and environmental organizational legitimacy. When manufacturing companies in Indonesia implement this model of managing environmental issues, the society will get more benefits in terms of the reduction of environmental degradation, the availability of more green products and programs, the improvements in resource efficiencies and economic development and the enhancement of the quality of life. Originality/value A research framework exploring the mediating roles of green organizational identity and environmental organizational legitimacy on green innovation strategy–green innovation relationship is developed to provide the empirical evidence for the organizational identity theory and the organizational legitimacy theory. This study also provides practical implications for managers who are facing the environmental awareness business environment. If they want to achieve a better green innovation performance, managers should enhance their awareness in managing the antecedents of green innovation performance, namely, green innovation strategy, green organizational identity and environmental organizational legitimacy.

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