Curvilinear Relationship between Corporate Innovation and Environmental Sustainability
AbstractThis paper proposes and tests the impacts of firms’ innovation activities, such as patents, on their involvement in environmental sustainability, such as environmental performance. Combining resource allocation and eco-innovation perspectives assuming constant levels of trade-off costs, this study proposes diminishing trade-off costs between corporate innovation and environmental sustainability. Specifically, this research hypothesizes a U-shaped relationship, suggesting that a firm will suffer trade-off costs between innovation and environment-oriented activities up to a certain level, and that once a firm accumulates an adequate level of innovation, it may reduce trade-off costs, caring more for environmental issues. A proposed hypothesis is supported by empirical testing of a sample of 11,657 firm-year observations with 1564 firms, spanning from 1991 to 2010. We also found that corporate patenting activities are relevant to undesirable impacts on environmental performance overall, instead of satisfying outcomes. We suggest that firms and managers should care for environmental sustainability issues once they accumulate an adequate level of innovation assets through patenting activities. View Full-Text
Scifeed alert for new publicationsNever miss any articles matching your research from any publisher
- Get alerts for new papers matching your research
- Find out the new papers from selected authors
- Updated daily for 49'000+ journals and 6000+ publishers
- Define your Scifeed now
Lee, J.; Kim, S.-J. Curvilinear Relationship between Corporate Innovation and Environmental Sustainability. Sustainability 2017, 9, 1267.
Lee J, Kim S-J. Curvilinear Relationship between Corporate Innovation and Environmental Sustainability. Sustainability. 2017; 9(7):1267.Chicago/Turabian Style
Lee, Jegoo; Kim, Sang-Joon. 2017. "Curvilinear Relationship between Corporate Innovation and Environmental Sustainability." Sustainability 9, no. 7: 1267.
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.