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Increasing concern about green growth is rapidly transforming the competitive landscape and forcing firms to invest in environmental management (EM) to become greener. Although resource slack has been viewed as a critical factor that influences EM investment, research has produced inconsistent findings on its role in EM investment. This article develops and tests a theoretical model that proposes a curvilinear relationship between firm resource slack and EM investment and the contingencies of internal and external technology sources that underpin this relationship. Based on an analysis on a random sample of 4088 Chinese firms, the results show that firm resource slack has an inverted U-shaped association with EM investment. Moreover, this association is differently moderated by governmental green technology support and technological capability. In addition to providing valuable practical implications, these findings advance our understanding of how and under what circumstances resource slack will influence EM investment.

Does resource slack promote or constrain firm environmental management investment? Moderating roles of technology sources