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Sustainability 2017, 9(11), 1980; doi:10.3390/su9111980

The Effects of Government Support on Corporate Performance Hedging against International Environmental Regulation

1
Graduate School of International Logistics and Trade, Chung-Ang University, 84 Heukseok-ro, Dongjak-gu, Seoul 06794, Korea
2
College of Business and Economics, Chung-Ang University, 84 Heukseok-ro, Dongjak-gu, Seoul 156-756, Korea
*
Author to whom correspondence should be addressed.
Received: 11 September 2017 / Revised: 20 October 2017 / Accepted: 23 October 2017 / Published: 30 October 2017
(This article belongs to the Special Issue Sustainability in SMEs)
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Abstract

Government support systems are crucial for export SMEs (Small to Medium Enterprises) to cope with growing international environmental regulations. However, empirical studies show a limited research area to explore the performance of export SMEs with the help of government support systems to meet international environmental regulations. This study draws implications on the relationship between government support and corporate performance on export SMEs between two countries: Korea and China. Based on 350 samples from Korea and 320 from China, we diagnosed government supports most positively affects corporate performances in the area of eco-innovation. While education, certificate, and tax supports were less pressing areas to support, no significance was found in information support. Furthermore, we found that eco-innovation is the strongest motive to accelerate corporate performance. Finally, the support of Chinese government on firms seems to be more affective when compared to Korean government support. View Full-Text
Keywords: international environmental regulations; government support systems; eco-innovation; corporate performance; Korea and China international environmental regulations; government support systems; eco-innovation; corporate performance; Korea and China
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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Joo, H.-Y.; Suh, H. The Effects of Government Support on Corporate Performance Hedging against International Environmental Regulation. Sustainability 2017, 9, 1980.

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