Research on the Impact of Green Innovation Network Embeddedness on Corporate Environmental Responsibility

Abstract

In the process of China’s economic transformation, enterprises urgently need to use green innovation networks to realize corporate sustainability. Based on resource-based theory, this study explores the internal mechanism and boundary conditions of green innovation network embeddedness that affect corporate environmental responsibility. This paper conducts an empirical study based on panel data of listed companies engaged in green innovation in China from 2010 to 2020. Drawing on network embeddedness theory and resource-based theory, we found that relational and structural embeddedness influenced green reputation, which affected corporate environmental responsibility. We also identified the importance of ethical leadership and examined its role in moderating the effect of green innovation network embeddedness. A further investigation revealed that the impact of network embeddedness on corporate environmental responsibility was particularly pronounced in the samples of enterprises with high-level political ties, loose financing restrictions, and nonstate ownership. Our findings highlight the advantages of embedded green innovation networks and offer theoretical references and recommendations for enterprises considering network participation. Enterprises should attach great importance to the network embedding strategy of green innovation for corporate environmental responsibility and actively integrate the concept of green development into network relationship embedding and network structure embedding. Moreover, the relevant government department should provide necessary environment incentive policies according to the enterprise’s development needs, especially for the enterprises with low-level political ties, high financing restrictions, and state ownership.