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Corporate culture, environmental innovation and financial performance
Author(s) -
Liao Zhongju
Publication year - 2018
Publication title -
business strategy and the environment
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.123
H-Index - 105
eISSN - 1099-0836
pISSN - 0964-4733
DOI - 10.1002/bse.2186
Subject(s) - clan , organizational culture , business , sample (material) , hierarchy , structural equation modeling , industrial organization , product (mathematics) , tertiary sector of the economy , service (business) , product innovation , marketing , economics , management , sociology , market economy , chemistry , statistics , mathematics , geometry , chromatography , anthropology
Based on the logic of culture‐behaviour performance, this study constructs a theoretical model to examine the effect of four types of corporate culture (clan, adhocracy, hierarchy and market) on the three dimensions of a firm's environmental innovation (eco‐organizational, eco‐process and eco‐product) and whether environmental innovation affects a firm's financial performance. Three hundred and sixty‐six firms in the manufacturing and service industries are selected as a valid research sample, and a structural equation model is used for empirical analysis. The results show that adhocracy and market cultures are positively related to a firm's eco‐organizational, eco‐process and eco‐product innovation; clan culture has a positive effect, and hierarchy culture a negative effect, on eco‐organizational innovation; and the three dimensions of environmental innovation all promote a firm's financial performance. Based on these conclusions, this study discusses managerial implications and suggests future research directions.