Jianchang Fan, Zhun Li, Fei Ye, Yuhui Li and Nana Wan
This study aims to focus on the optimal green R&D of a capital-constrained supply chain under different channel power structures as well as the impact of capital constraint…
Abstract
Purpose
This study aims to focus on the optimal green R&D of a capital-constrained supply chain under different channel power structures as well as the impact of capital constraint, financing cost, channel power structure and cost-reducing efficiency on green R&D and supply chain profitability.
Design/methodology/approach
A two-echelon supply chain is considered. The upstream firm engages in green R&D but has capital constraints that can be overcome by external financing. Green R&D is beneficial to reduce production costs and increase consumer demand. Based on whether or not the upstream firm is capital constrained and dominates the supply chain, four models are developed.
Findings
Capital constraints significantly lower green R&D and supply chain profitability. Transferring leadership from the upstream to the downstream firms leads to higher green R&D levels and downstream firm profitability, whereas the upstream firm's profitability is increased (decreased) if green R&D investment efficiency is high (low) enough. Greater financing costs reduce green R&D and downstream firm profitability; however, the upstream firm's profitability under the model in which it functions as the follower increases if the initial capital is sufficient. More importantly, empirical analysis based on practice data is used to verify the theoretical results reported above.
Practical implications
This study reveals how upstream firms in supply chains decide green R&D decisions in situations with capital constraints, providing managers and governments with an understanding of the impact of capital constraint, channel power structure, financing cost and cost-reducing efficiency on supply chain green R&D and profitability.
Originality/value
The major contributions are the exploration of supply chain green R&D by taking into consideration channel power structures and cost-reducing efficiency and the validation of theoretical results using practice data.
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Marcellin Makpotche, Kais Bouslah and Bouchra M’Zali
This study aims to exploit Tobin’s Q model of investment to examine the relationship between corporate governance and green innovation.
Abstract
Purpose
This study aims to exploit Tobin’s Q model of investment to examine the relationship between corporate governance and green innovation.
Design/methodology/approach
The study is based on a sample of 3,896 firms from 2002 to 2021, covering 45 countries worldwide. The authors adopt Tobin’s Q model to conceptualize the relationship between corporate governance and investment in green research and development (R&D). The authors argue that agency costs and financial market frictions affect corporate investment and are fundamental factors in R&D activities. By limiting agency conflicts, effective governance favors efficiency, facilitates access to external financing and encourages green innovation. The authors analyzed the causal effect by using the system-generalized method of moments (system-GMM).
Findings
The results reveal that the better the corporate governance, the more the firm invests in green R&D. A 1%-point increase in the corporate governance ratings leads to an increase in green R&D expenses to the total asset ratio of about 0.77 percentage points. In addition, an increase in the score of each dimension (strategy, management and shareholder) of corporate governance results in an increase in the probability of green product innovation. Finally, green innovation is positively related to firm environmental performance, including emission reduction and resource use efficiency.
Practical implications
The findings provide implications to support managers and policymakers on how to improve sustainability through corporate governance. Governance mechanisms will help resolve agency problems and, in turn, encourage green innovation.
Social implications
Understanding the impact of corporate governance on green innovation may help firms combat climate change, a crucial societal concern. The present study helps achieve one of the precious UN’s sustainable development goals: Goal 13 on climate action.
Originality/value
This study goes beyond previous research by adopting Tobin’s Q model to examine the relationship between corporate governance and green R&D investment. Overall, the results suggest that effective corporate governance is necessary for environmental efficiency.
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Zhishan Yan, Haiqing Hu, Zhaoqun Wang, Zhikang Liang and Weiwei Kong
This paper aims to explore the effect of different government subsidy decisions and the differences between the consequences of these decisions when supply chain members engage in…
Abstract
Purpose
This paper aims to explore the effect of different government subsidy decisions and the differences between the consequences of these decisions when supply chain members engage in cooperative green innovation through cost-sharing arrangements.
Design/methodology/approach
This paper investigates the optimal decisions for green supply chains under two types of subsidies, including subsidies for green innovation research and development (R&D) costs and subsidies for consumers, by integrating game theory with numerical simulation.
Findings
The optimal R&D cost-sharing ratio is found to be 2/3 for manufacturers and 1/3 for retailers. Under any subsidy policy, the supply chain can achieve maximum total profit. When the supply chain adopts the optimal R&D cost-sharing ratio, subsidies for green innovation R&D costs prove to be the most effective in increasing the supply chain’s profit. However, from the perspective of total social welfare, the analysis reveals that government subsidies to consumers are more beneficial for promoting overall social welfare.
Originality/value
Previous studies on green supply chain decisions have primarily focused on either government subsidies or corporate cost sharing in isolation. In contrast, this study combines both government subsidies and cost sharing within a unified framework for a more comprehensive analysis. Additionally, this paper examines the impact of government subsidies on supply chain cost-sharing decisions and their effect on overall social welfare while considering the presence of cost sharing and using the combination of theoretical modeling and simulation analysis.
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Yingying Chi, Lianghua Chen, Yufei Hu, Yafei Zu, Xue Peng and Jinpei Liu
Green technology, characterized by its environmentally friendly attributes and sustainable practices, has emerged as a crucial tool in harmonizing the economic and ecological…
Abstract
Purpose
Green technology, characterized by its environmentally friendly attributes and sustainable practices, has emerged as a crucial tool in harmonizing the economic and ecological benefits. However, the challenge lies in selecting the most effective strategies for acquiring green technology. This paper aims to explore how chemical enterprises choose green technology acquisition strategies across diverse scenarios.
Design/methodology/approach
Considering the influence of competition effects, spillover effects and their interactions on selecting green technology acquisition strategies, this paper develops three decision models (independent R&D, cooperative R&D and technology introduction). Drawing on the duopoly game theory as its theoretical framework, this paper delves into the examination of the economic and environmental benefits within distinct scenarios.
Findings
Cooperative R&D excels in promoting green technology R&D when spillover effects are strong, while independent R&D demonstrates superiority when spillover effects are weak. The threshold for the strength of spillover effects is related to competition effects. Additionally, cooperative R&D typically yields greater financial advantages than independent R&D and technology introduction. Moreover, the economic and environmental benefits may not be optimized simultaneously. Only enterprises that satisfy low competition and spillover effects as well as high competition and spillover effects, can achieve win-win economic and environmental benefits.
Originality/value
Although green technology R&D and introduction are alternative strategies, they have typically been considered separately in prior literature. This study attempts to incorporate green technology R&D and introduction into a strategic system to investigate the selection of green technology acquisition strategies, taking into account competition effects, spillover effects and their interactions.
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Kritika Gupta and Navjit Singh
Purpose: The study focusses on the systematic review of the greenwashing literature to present the research gaps to researchers for future studies.Design/methodology/approach: The…
Abstract
Purpose: The study focusses on the systematic review of the greenwashing literature to present the research gaps to researchers for future studies.
Design/methodology/approach: The systematic review has been used to analyse past studies on ‘greenwashing’. The 325 research articles of the previous 10 years (2014–2023) were downloaded from the Scopus-indexed database using the keyword ‘greenwashing’.
The findings: There is a need for a study on greenwashing in developing countries like India. An attempt should be made to analyse the research with a large sample size.
Research limitations: The scope of the data used in this study is limited by the source of retrieval, that is, the Scopus. The current source adequately serves the study’s purpose, as the Scopus database is one of the most significant citation databases. This study analyses data from the years 2014 to 2023 to improve credibility and reduce biases.
Practical implications: The research findings will significantly help researchers, green marketers, and practitioners be aware of the emerging markets of greenwashing and consumers’ rising greenwashing perception of green products.
Originality/value: This study is a novel attempt to explore a better understanding of greenwashing for researchers. The study is original; work has yet to be performed on this topic.
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Yang Bai, Xue Zhang and Dajiang Wang
This research examines the relationship between green innovation and firm performance, focusing on identifying the moderating effects of government subsidies and digital…
Abstract
Purpose
This research examines the relationship between green innovation and firm performance, focusing on identifying the moderating effects of government subsidies and digital transformation R&D investments. The study aims to provide insights on how firms can leverage green innovation for enhanced performance while addressing potential drawbacks.
Design/methodology/approach
This study adopts a mixed-methods approach, utilizing both analytical models and empirical analyses. It investigates the curvilinear relationship between green innovation and firm performance and explores the moderating roles of government subsidies and digital transformation R&D investments.
Findings
The findings reveal an inverted U-shaped relationship between green innovation and firm performance, indicating that initial investments in green innovation led to performance improvements, but beyond a certain point, the returns diminished. The study also finds that government subsidies and digital transformation R&D investments significantly enhance the positive impact of green innovation up to the optimal threshold and help mitigate negative effects.
Practical implications
The research provides practical guidance for firms on managing their green innovation investments to maximize performance benefits. It also offers insights for policymakers on designing effective subsidies and support mechanisms to promote environmental sustainability and economic growth.
Originality/value
This study contributes to the literature by elucidating the complex relationship between green innovation and firm performance and highlighting the critical roles of government subsidies and digital transformation R&D investments. It offers valuable implications for businesses seeking to balance environmental and economic objectives and policymakers aiming to foster sustainable and profitable practices.
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Nan Chen, Jianfeng Cai, Devika Kannan and Kannan Govindan
The rapid development of the Internet has led to an increasingly significant role for E-commerce business. This study examines how the green supply chain (GSC) operates on the…
Abstract
Purpose
The rapid development of the Internet has led to an increasingly significant role for E-commerce business. This study examines how the green supply chain (GSC) operates on the E-commerce online channel (resell mode and agency mode) and the traditional offline channel with information sharing under demand uncertainty.
Design/methodology/approach
This study builds a multistage game model that considers the manufacturer selling green products through different channels. On the traditional offline channel, the competing retailers decide whether to share demand signals. Regarding the resale mode of E-commerce online channel, just E-tailer 1 determines whether to share information and decides the retail price. In the agency mode, the manufacturer decides the retail price directly, and E-tailer 2 sets the platform rate.
Findings
This study reveals that information accuracy is conducive to information value and profits on both channels. Interestingly, the platform fee rate in agency mode will inhibit the effect of a positive demand signal. Information sharing will cause double marginal effects, and price competition behavior will mitigate such effects. Additionally, when the platform fee rate is low, the manufacturer will select the E-commerce online channel for operation, but the retailers' profit is the highest in the traditional channel.
Originality/value
This research explores the interplay between different channel structures and information sharing in a GSC, considering price competition and demand uncertainty. Besides, we also considered what behaviors and factors will amplify or transfer the effect of double marginalization.
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Abstract
Purpose
The purpose of this paper is to examine the impacts of research and development (R&D) investment and environmental, social and governance (ESG) performance on green innovation performance. This paper also investigates the moderating effect of ESG performance between R&D investment and green innovation performance.
Design/methodology/approach
The study uses the data of 223 Chinese listed companies over the period 2015–2018. The ESG indices issued by SynTao Green Finance are used to measure ESG performance. Green innovation performance is measured by the total number of green patents, the number of green invention patents and the number of green non-invention patents. Finally, multiple regression analysis is applied to test the research hypotheses.
Findings
The results show that R&D investment has a positive impact on green innovation performance and ESG performance can increase the number of green invention patents. In addition, ESG performance moderates the relationship between R&D investment and green innovation performance.
Practical implications
The findings may help managers and policymakers in developing countries to make ecological innovation strategies to achieve corporate sustainability.
Originality/value
This is the first study to examine the impacts of R&D investment and ESG performance on green innovation performance in the context of China, an emerging market.
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Xuezhu Wang, Runze Zhang, Zheng Gong and Xi Chen
This study aims to empirically examine how blockchain, one of the emerging Industry 4.0 technologies, can combat climate change by improving their green innovation performance…
Abstract
Purpose
This study aims to empirically examine how blockchain, one of the emerging Industry 4.0 technologies, can combat climate change by improving their green innovation performance, particularly under conditions of policy uncertainty.
Design/methodology/approach
This study utilizes the difference-in-difference-in-difference (DDD) method to explore the effect of blockchain on enterprises' green innovation performance. The analysis is based on data from Chinese-listed enterprises spanning the period from 2013 to 2021.
Findings
First, the adoption of blockchain in enterprises registered in areas designated as low-carbon pilot cities can significantly improve their green innovation performance. Second, the enhancement of green innovation efficiency emerges as the primary driving force behind the adoption of blockchain, thereby leading to improved green innovation performance. Lastly, it is observed that blockchain adoption has a greater positive impact on improving green efficiency in private enterprises compared to state-owned enterprises in China.
Practical implications
For managers, the findings can provide valuable insights to help them better prepare for the challenges and opportunities presented by the era of Industry 4.0. For policymakers, this study offers valuable insights into the interaction between new technologies in Industry 4.0 and the performance of green innovation, thereby aiding in the formulation of effective policies.
Originality/value
This study contributes to bridging the existing gap between the adoption of new technologies, such as blockchain, and their potential impact on climate change. Moreover, this research enriches practitioners' understanding of how new technologies in the era of Industry 4.0 can be applied to address significant challenges like climate change.
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Zerun Fang, Wenlin Gui, Zhaozhou Han and Lan Lan
This study aims to propose a refined dynamic network slacks-based measure (DNSBM) to evaluate the efficiency of China's regional green innovation system which consists of basic…
Abstract
Purpose
This study aims to propose a refined dynamic network slacks-based measure (DNSBM) to evaluate the efficiency of China's regional green innovation system which consists of basic research, applied research and commercialization stages and explore the influencing factors of the stage efficiency.
Design/methodology/approach
A two-step procedure is employed. The first step proposes an improved DNSBM model with flexible settings of stages' input or output efficiency and uses second order cone programming (SOCP) to solve the non-linear problem. In the second step, least absolute shrinkage and selection operator (LASSO) and Tobit models are used to explore the influencing factors of the stage efficiency. Global Dynamic Malmquist Productivity Index (GDMPI) and Dagum Gini coefficient decomposition method are introduced for further discussion of the productivity change and regional differences.
Findings
On average, Chinese provincial green innovation efficiency should be improved by 24.11% to become efficient. The commercialization stage outperforms the stages of basic research and applied research. Comparisons between the proposed model and input-oriented, output-oriented and non-oriented DNSBM models show that the proposed model is more advanced because it allows some stages to have output-oriented model characteristics while the other stages have input-oriented model characteristics. The examination of the influencing factors reveals that the three stages of the green innovation system have quite diverse influencing factors. Further discussion reveals that Chinese green innovation productivity has increased by 39.85%, which is driven mainly by technology progress, and the increasing tendency of regional differences between northern and southern China should be paid attention to.
Originality/value
This study proposes an improved dynamic three-stage slacks-based measure (SBM) model that allows calculating output efficiency in some stages and input efficiency in the other stages with the application of SOCP approach. In order to capture productivity change, this study develops a GDMPI based on the DNSBM model. In practice, the efficiency of regional green innovation in China and the factors that influence each stage are examined.