Environmental regulations, innovation and firm performance: a revisit of the Porter hypothesis

doi:10.1016/J.JCLEPRO.2016.08.116

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Environmental regulations, innovation and firm performance: a revisit of the Porter hypothesis

Journal Article•DOI•

Environmental regulations, innovation and firm performance: a revisit of the Porter hypothesis

Ramakrishnan Ramanathan¹, Qile He², Andrew Black³, Abby Ghobadian⁴, David Gallear⁵ - Show less +1 more•Institutions (5)

University of Bedfordshire¹, Coventry University², University of Nottingham³, University of Reading⁴, Brunel University London⁵

01 Jul 2017-Journal of Cleaner Production (Elsevier)-Vol. 155, Iss: 2, pp 79-92

TL;DR: In this paper, the authors investigated the impact of the manufacturing process on the quality of the products produced by the Nottingham Innovative Manufacturing Research Centre and the University of Bedfordshire Business and Management Research Institute.

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About: This article is published in Journal of Cleaner Production.The article was published on 2017-07-01 and is currently open access. It has received 299 citations till now. The article focuses on the topics: Environmental Sustainability Index & Porter hypothesis.

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Posted Content•

A natural resource-based view of the firm

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Stuart L. Hart¹•Institutions (1)

University of Michigan¹

01 Jan 1994

TL;DR: In this paper, a natural resource-based view of the firm is proposed, which is composed of three interconnected strategies: pollution prevention, product stewardship, and sustainable development, and each of these strategies are advanced for each of them regarding key resource requirements and their contributions to sustained competitive advantage.

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Abstract: Historically, management theory has ignored the constraints imposed by the biophysical (natural) environment. Building upon resource-based theory, this article attempts to fill this void by proposing a natural-resource-based view of the firm—a theory of competitive advantage based upon the firm's relationship to the natural environment. It is composed of three interconnected strategies: pollution prevention, product stewardship, and sustainable development. Propositions are advanced for each of these strategies regarding key resource requirements and their contributions to sustained competitive advantage.

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902 citations

Journal Article•DOI•

Environmental regulation, industrial innovation and green development of Chinese manufacturing: Based on an extended CDM model

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Baolong Yuan¹, Qiulian Xiang²•Institutions (2)

Central South University Forestry and Technology¹, Central South University²

01 Mar 2018-Journal of Cleaner Production

TL;DR: In this article, the authors construct the extended Crepon-Duguet-Mairesse (CDM) model and employ the panel data of Chinese manufacturing industries during 2003-2014 to examine the effects of environmental regulation on industrial innovation and green development.

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326 citations

Journal Article•DOI•

Environmental regulation and green productivity growth: Empirical evidence on the Porter Hypothesis from OECD industrial sectors

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Yun Wang¹, Xiaohua Sun¹, Xu Guo²•Institutions (2)

Dalian University of Technology¹, Dalian Maritime University²

01 Sep 2019-Energy Policy

TL;DR: In this paper, the authors analyzed the impact of environmental regulation policies on green productivity growth in OECD countries' industrial sectors using an extended SBM-DDF approach and found that the impact turns to be adverse when the environmental regulation policy is stringent over a certain level.

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282 citations

Journal Article•DOI•

Technological innovation, environmental regulation, and green total factor efficiency of industrial water resources

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Wei Jin¹, Heng-quan Zhang¹, Shuang-shuang Liu¹, Hong-bo Zhang•Institutions (1)

Hohai University¹

20 Feb 2019-Journal of Cleaner Production

TL;DR: In this paper, the effect of technological innovation, environmental regulation, and the interaction of these two factors on the green total factor efficiency (GTFE) of industrial water resources by applying the Super-Slack Based Measure (SBM) model of non-expected output was analyzed.

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192 citations

Journal Article•DOI•

Can low-carbon city construction facilitate green growth? Evidence from China's pilot low-carbon city initiative

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Jinhua Cheng¹, Jiahui Yi¹, Sheng Dai², Yan Xiong¹•Institutions (2)

China University of Geosciences (Wuhan)¹, Aalto University²

10 Sep 2019-Journal of Cleaner Production

TL;DR: In this article, the authors adopt the difference-in-differences model to explore the impact of low-carbon city construction on green growth and estimate the heterogeneity of economic-environmental effects on cities, and those effects are attributed to different scales and locations.

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189 citations

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Journal Article•DOI•

Building theories from case study research

[...]

Kathleen M. Eisenhardt¹•Institutions (1)

Stanford University¹

01 Feb 2009

TL;DR: In this paper, the authors describe the process of inducting theory using case studies from specifying the research questions to reaching closure, which is a process similar to hypothesis-testing research.

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Abstract: Building Theories From Case Study Research - This paper describes the process of inducting theory using case studies from specifying the research questions to reaching closure. Some features of the process, such as problem definition and construct validation, are similar to hypothesis-testing research. Others, such as within-case analysis and replication logic, are unique to the inductive, case-oriented process. Overall, the process described here is highly iterative and tightly linked to data. This research approach is especially appropriate in new topic areas. The resultant theory is often novel, testable, and empirically valid. Finally, framebreaking insights, the tests of good theory (e.g., parsimony, logical coherence), and convincing grounding in the evidence are the key criteria for evaluating this type of research.

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40,005 citations

Journal Article•DOI•

Dynamic capabilities and strategic management

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David J. Teece¹, Gary P. Pisano², Amy Shuen³•Institutions (3)

University of California, Berkeley¹, Harvard University², San Jose State University³

01 Aug 1997-Strategic Management Journal

TL;DR: The dynamic capabilities framework as mentioned in this paper analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change, and suggests that private wealth creation in regimes of rapid technology change depends in large measure on honing intemal technological, organizational, and managerial processes inside the firm.

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Abstract: The dynamic capabilities framework analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. The competitive advantage of firms is seen as resting on distinctive processes (ways of coordinating and combining), shaped by the firm's (specific) asset positions (such as the firm's portfolio of difftcult-to- trade knowledge assets and complementary assets), and the evolution path(s) it has aflopted or inherited. The importance of path dependencies is amplified where conditions of increasing retums exist. Whether and how a firm's competitive advantage is eroded depends on the stability of market demand, and the ease of replicability (expanding intemally) and imitatability (replication by competitors). If correct, the framework suggests that private wealth creation in regimes of rapid technological change depends in large measure on honing intemal technological, organizational, and managerial processes inside the firm. In short, identifying new opportunities and organizing effectively and efficiently to embrace them are generally more fundamental to private wealth creation than is strategizing, if by strategizing one means engaging in business conduct that keeps competitors off balance, raises rival's costs, and excludes new entrants. © 1997 by John Wiley & Sons, Ltd.

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27,902 citations

"Environmental regulations, innovati..." refers background or methods in this paper

...Moreover, inspired by the dynamic capabilities view (DCV) of the firm (Teece et al., 1997), the conceptual framework better articulates the differences in the ability of firms to respond to regulatory pressures dynamically and to innovate to achieve positive win–win outcomes leading to both public and private sustainability benefits....
[...]
...The dynamic approach is supported by the dynamic capabilities view (DCV) of the firm (Eisenhardt and Martin, 2000; Teece et al., 1997)....
[...]

Journal Article•DOI•

Building theories from case study research.

[...]

Kathleen M. Eisenhardt¹•Institutions (1)

Stanford University¹

01 Oct 1989-Academy of Management Review

TL;DR: In this paper, the authors define a leadership event as a perceived segment of action whose meaning is created by the interactions of actors involved in producing it, and present a set of innovative methods for capturing and analyzing these contextually driven processes.

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Abstract: �Traditional, hierarchical views of leadership are less and less useful given the complexities of our modern world. Leadership theory must transition to new perspectives that account for the complex adaptive needs of organizations. In this paper, we propose that leadership (as opposed to leaders) can be seen as a complex dynamic process that emerges in the interactive “spaces between” people and ideas. That is, leadership is a dynamic that transcends the capabilities of individuals alone; it is the product of interaction, tension, and exchange rules governing changes in perceptions and understanding. We label this a dynamic of adaptive leadership, and we show how this dynamic provides important insights about the nature of leadership and its outcomes in organizational fields. We define a leadership event as a perceived segment of action whose meaning is created by the interactions of actors involved in producing it, and we present a set of innovative methods for capturing and analyzing these contextually driven processes. We provide theoretical and practical implications of these ideas for organizational behavior and organization and management theory.

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22,673 citations

"Environmental regulations, innovati..." refers background or methods in this paper

...According to Eisenhardt (1989), four to ten cases are the norm of the inductive cas-study approach....
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...Rich information generated from case studies can usually produce testable novel theories (Eisenhardt, 1989)....
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...Qualitative research methodology requires a detailed analysis of case study companies, which forms the basis for within-case analysis (Eisenhardt, 1989)....
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...According to Eisenhardt (1989), building case studies offers a good basis for developing theory, particularly when the subject is new, because the rich information generated can usually produce testable novel theories....
[...]
...Qualitative research methodology requires a detailed analysis of case-study companies, which forms the basis for within-case analysis (Eisenhardt, 1989)....
[...]

Journal Article•DOI•

Theory Building From Cases: Opportunities And Challenges

[...]

Kathleen M. Eisenhardt¹, Melissa E. Graebner²•Institutions (2)

Stanford University¹, University of Texas at Austin²

01 Feb 2007-Academy of Management Journal

TL;DR: The research strategy of theory building from cases, particularly multiple cases, involves using one or more cases to create theoretical constructs, propositions, and/or midrange theory from case-based, empirical evidence.

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Abstract: This article discusses the research strategy of theory building from cases, particularly multiple cases. Such a strategy involves using one or more cases to create theoretical constructs, propositions, and/or midrange theory from case-based, empirical evidence. Replication logic means that each case serves as a distinct experiment that stands on its own merits as an analytic unit. The frequent use of case studies as a research strategy has given rise to some challenges that can be mitigated by the use of very precise wording and thoughtful research design.

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13,581 citations

Journal Article•DOI•

Dynamic capabilities, what are they?

[...]

Kathleen M. Eisenhardt¹, Jeffrey A. Martin¹•Institutions (1)

Stanford University¹

01 Oct 2000-Strategic Management Journal

TL;DR: Seeks to present a better understanding of dynamic capabilities and the resource-based view of the firm to help managers build using these dynamic capabilities.

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Abstract: This paper focuses on dynamic capabilities and, more generally, the resource-based view of the firm. We argue that dynamic capabilities are a set of specific and identifiable processes such as product development, strategic decision making, and alliancing. They are neither vague nor tautological. Although dynamic capabilities are idiosyncratic in their details and path dependent in their emergence, they have significant commonalities across firms (popularly termed ‘best practice’). This suggests that they are more homogeneous, fungible, equifinal, and substitutable than is usually assumed. In moderately dynamic markets, dynamic capabilities resemble the traditional conception of routines. They are detailed, analytic, stable processes with predictable outcomes. In contrast, in high-velocity markets, they are simple, highly experiential and fragile processes with unpredictable outcomes. Finally, well-known learning mechanisms guide the evolution of dynamic capabilities. In moderately dynamic markets, the evolutionary emphasis is on variation. In high-velocity markets, it is on selection. At the level of RBV, we conclude that traditional RBV misidentifies the locus of long-term competitive advantage in dynamic markets, overemphasizes the strategic logic of leverage, and reaches a boundary condition in high-velocity markets. Copyright © 2000 John Wiley & Sons, Ltd.

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13,128 citations

"Environmental regulations, innovati..." refers background or methods in this paper

...The dynamic approach is supported by the dynamic capabilities view (DCV) of the firm (Eisenhardt and Martin, 2000; Teece et al., 1997)....
[...]
...Moreover, inspired by the dynamic capabilities view (DCV) of the firm (Teece et al., 1997), the conceptual framework better articulates the differences in the ability of firms to respond to regulatory pressures dynamically and to innovate to achieve positive win–win outcomes leading to both public and private sustainability benefits....
[...]
...While doing so, ample support was found for the DCV (Eisenhardt and Martin, 2000), especially in the role of firms’ resources and capabilities in Proposition 1....
[...]
...Previous research highlighted the importance of the DCV in explaining the varied strategic choices, but was limited in providing evidence to M AN US CR IP T AC CE PT ED ACCEPTED MANUSCRIPT 22 relate the reconfiguration of firms’ resources with f nancial performance (Rugman and Verbeke, 2000)....
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...The theoretical predictions of the DCV have been supported in this study, because evidence was found for a positive impact on fina cial performance only when firms’ resources and capabilities are effectively utilised to evelop innovation....
[...]