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As one of the most concerned topics in environmental and ecological research, the environmental performance of firms is extensively studied while little notices the relationship between firms’ geo-location and major cities. Focusing on the spatial agglomerations of corporate environmental performance (CEP) surrounding major cities in China, we examine the research question of “How could major cities affect firms’ environmental performances”. We propose that major cities affect CEP through knowledge spillover, while the strength of influences depends on firms’ spatial proximity to the central area of major cities. Besides, we argue that CEP knowledge spillover principally consists of knowledge transfer and knowledge conversion, the two modes via which CEP knowledge spills over. Based on a sample of 193 Chinese firms, we find that Firms in spatial proximity to major cities centers could obtain more knowledge transfer and conversion on CEP, and thereby improving their environmental performance. Finally, we discuss the research findings, limitations, and future research directions.

UNPACKING THE INFLUENCE OF MAJOR CITIES ON CORPORATE ENVIRONMENTAL PERFORMANCE IN CHINA: A PERSPECTIVE OF SPATIAL KNOWLEDGE SPILLOVER