Stakeholder Risk and Trust Perceptions in the Diffusion of Green Manufacturing Technologies: Evidence From China

Abstract

The Chinese government attempts to use market-oriented measures, such as energy performance contracts (EPCs) rather than mere policy mandates, to encourage manufacturers to voluntarily adopt green technologies. However, the low use rate of EPCs in existing diffusion projects calls for an in-depth examination. This article, therefore, aims to investigate the adoption risks that thwart key stakeholders, as well as the stakeholders' trust that may mitigate the aforementioned risks, through a case study of the national-level diffusion project. Using network analysis, this study identifies four critical risks that are associated to key stakeholders, that is, information asymmetry, funding support, payback period savings potential, and technical competences. Furthermore, it discloses the linkages between stakeholders' trust perceptions and the aforementioned risks. This outcome gives us new insights about what can be improved to better promote EPCs in diffusion projects on a national scale.