Effect of green innovation strategy on firm-idiosyncratic risk: A competitive action perspective

Lin, Woon Leong, Azali, Mohamed, Sambasivan, Murali and Yip, Nick (2020) Effect of green innovation strategy on firm-idiosyncratic risk: A competitive action perspective. Business Strategy and the Environment, 29 (3). pp. 886-901. ISSN 0964-4733

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Abstract

Despite increasing concern for corporate environmental responsibility in numerous industries, the relationship between green innovation strategy (GIS) and idiosyncratic risk is a rarely scrutinised topic, particularly in the automotive domain. In this study, we empirically explore the association between GIS and idiosyncratic risk and analyse the moderating role played by the firm's competitive action. We rely on the secondary information sourced for 132 top automotive firms, in the period ranging from 2011 to 2017 by applying the system generalised methods of moments estimator to the dynamic panel data model. Our findings indicate that GIS significantly reduces the idiosyncratic risk of all firms, and this relationship strengthens with the increase in the competitive action of the firms. Our evidence supports “it pays to be green” firm heterogeneity argument. This study highlights the academic and managerial implications and focuses on the environmental issues published in environmental management literature.

Item Type: Article
Uncontrolled Keywords: automotive industry,competitive action,green innovation strategy,idiosyncratic risk,system gmm,corporate social-responsibility,chain management-practices,environmental performance,impact,panel-data,organizations,financial performance,companies,volatility,product innovation,geography, planning and development,business and international management,management, monitoring, policy and law,strategy and management,sdg 9 - industry, innovation, and infrastructure,sdg 12 - responsible consumption and production ,/dk/atira/pure/subjectarea/asjc/3300/3305
Faculty \ School: Faculty of Social Sciences > Norwich Business School
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Depositing User: LivePure Connector
Date Deposited: 12 Nov 2019 14:32
Last Modified: 11 Aug 2022 05:31
URI: https://ueaeprints.uea.ac.uk/id/eprint/72942
DOI: 10.1002/bse.2405

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