Environmental Regulations and Innovation for Sustainability? Moderating Effect of Political Connections

Bao Wu; Chevy-Hanqing Fang; Gady Jacoby; Geling Li; Zhenyu Wu

doi:10.1016/j.ememar.2021.100835

Environmental Regulations and Innovation for Sustainability? Moderating Effect of Political Connections

Bao Wu
, Chevy-Hanqing Fang
, Gady Jacoby
, Geling Li
, Zhenyu Wu

Missouri University of Science and Technology

Research output: Contribution to journal › Article › peer-review

Abstract

Companies are subject to both formal regulation pressure from government and informal regulation pressure from other stakeholders to adopt green innovations for sustainability. Using a sample of 4924 private Chinese companies, our empirical study indicates that both formal and informal regulation pressures have a positive effect on green innovation. We also find that political connections positively moderate the effect of formal regulation pressure on green innovation, but negatively moderate the effect of informal regulation pressure on green innovation.

Original language	American English
Journal	Emerging Markets Review
Volume	50
DOIs	https://doi.org/10.1016/j.ememar.2021.100835
State	Published - Jun 1 2021

Keywords

Environmental regulation
Formal regulation pressure
Green innovation
Informal regulation pressure
Political connections

Disciplines

Business

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10.1016/j.ememar.2021.100835License: CC BY

https://doi.org/10.1016/j.ememar.2021.100835

Cite this

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title = "Environmental Regulations and Innovation for Sustainability? Moderating Effect of Political Connections",

abstract = " Companies are subject to both formal regulation pressure from government and informal regulation pressure from other stakeholders to adopt green innovations for sustainability. Using a sample of 4924 private Chinese companies, our empirical study indicates that both formal and informal regulation pressures have a positive effect on green innovation. We also find that political connections positively moderate the effect of formal regulation pressure on green innovation, but negatively moderate the effect of informal regulation pressure on green innovation.",

keywords = "Environmental regulation, Formal regulation pressure, Green innovation, Informal regulation pressure, Political connections",

author = "Bao Wu and Chevy-Hanqing Fang and Gady Jacoby and Geling Li and Zhenyu Wu",

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AU - Wu, Bao

AU - Fang, Chevy-Hanqing

AU - Jacoby, Gady

AU - Li, Geling

AU - Wu, Zhenyu

PY - 2021/6/1

Y1 - 2021/6/1

N2 - Companies are subject to both formal regulation pressure from government and informal regulation pressure from other stakeholders to adopt green innovations for sustainability. Using a sample of 4924 private Chinese companies, our empirical study indicates that both formal and informal regulation pressures have a positive effect on green innovation. We also find that political connections positively moderate the effect of formal regulation pressure on green innovation, but negatively moderate the effect of informal regulation pressure on green innovation.

AB - Companies are subject to both formal regulation pressure from government and informal regulation pressure from other stakeholders to adopt green innovations for sustainability. Using a sample of 4924 private Chinese companies, our empirical study indicates that both formal and informal regulation pressures have a positive effect on green innovation. We also find that political connections positively moderate the effect of formal regulation pressure on green innovation, but negatively moderate the effect of informal regulation pressure on green innovation.

KW - Environmental regulation

KW - Formal regulation pressure

KW - Green innovation

KW - Informal regulation pressure

KW - Political connections

UR - https://scholarsmine.mst.edu/bio_inftec_facwork/376

UR - https://doi.org/10.1016/j.ememar.2021.100835

U2 - 10.1016/j.ememar.2021.100835

DO - 10.1016/j.ememar.2021.100835

M3 - Article

VL - 50

JO - Emerging Markets Review

JF - Emerging Markets Review

ER -

Environmental Regulations and Innovation for Sustainability? Moderating Effect of Political Connections

Abstract

Keywords

Disciplines

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