Internal Drivers of Organizational Sustainability: An Exploration of Green Innovation

Abstract

Background and Aims: Global environmental concerns have garnered widespread attention amidst profound shifts in the international economy, prompting a convergence towards sustainable development. Despite the imperative for economic growth, enterprises face escalating challenges in reconciling economic expansion with environmental stewardship. This study focuses on corporate green innovation as a strategic imperative, aiming to elucidate pathways for companies to achieve sustainable development and competitive advantages in the global marketplace. Methodology: Past research predominantly delves into economic ramifications and external stimuli such as environmental regulations, yet scant attention has been devoted to exploring the internal drivers propelling proactive green innovation within enterprises. To address this gap, this study establishes an internal driving model of corporate green innovation behavior, delving into the internal factors and mechanisms shaping such initiatives. Utilizing data from listed companies spanning 2015 to 2020, this paper adopts a micro-level research approach to analyze the impact of corporate characteristics—including size, ownership nature, and industry—on green innovation behavior. Moreover, it investigates whether internal driving factors moderate these relationships. Results: The findings reveal that enterprises' motivations to evade environmental penalties, attain environmental accolades, and garner political favor for state-owned enterprise executives significantly promote green innovation behavior. Notably, state-owned enterprises exhibit a stronger positive impact from these motivations compared to non-state-owned counterparts. Additionally, larger enterprises demonstrate heightened motivations to evade environmental penalties and pursue environmental recognition, particularly pronounced in heavily polluting industries. However, further research is warranted to elucidate the impact of political promotion motivations among state-owned enterprise executives. Conclusion: These findings contribute to theoretical advancements in understanding the determinants of green innovation behavior, offering valuable insights for enhancing government management efficiency, corporate environmental governance, and societal appreciation of corporate green innovation initiatives.