Environmental regulations, innovation and firm performance: A revisit of the Porter hypothesis

Journal article


Ramanathan, Ramakrishnan, He, Q., Black, Andrew, Ghobadian, Abby and Gallear, David 2016. Environmental regulations, innovation and firm performance: A revisit of the Porter hypothesis. Journal of Cleaner Production. 155, pp. 79-92. https://doi.org/10.1016/j.jclepro.2016.08.116
AuthorsRamanathan, Ramakrishnan, He, Q., Black, Andrew, Ghobadian, Abby and Gallear, David
Abstract

This paper examines the relationships between environmental regulations, firms' innovation and private sustainability benefits using nine case studies of UK and Chinese firms. It aims to unravel the mechanisms by which a firm's environmental behaviour in improving its private benefits of sustainability is influenced by its relationship with the government, which primarily enacts regulations to maximise public sustainability benefits in the interests of society as a whole. The paper takes its cue from the Porter hypothesis to make some broad preliminary assumptions to inform the research design. A conceptual framework was developed through inductive case studies using template analysis. The results show that depending on firms' resources and capabilities, those that adopt a more dynamic approach to respond to environmental regulations innovatively and take a proactive approach to manage their environmental performance are generally better able to reap the private benefits of sustainability.

KeywordsEnvironmental regulations; Flexibility; Innovation; Public benefits of sustainability; Private benefits of sustainability; Porter hypothesis
Year2016
JournalJournal of Cleaner Production
Journal citation155, pp. 79-92
PublisherElsevier BV
ISSN0959-6526
Digital Object Identifier (DOI)https://doi.org/10.1016/j.jclepro.2016.08.116
Web address (URL)http://hdl.handle.net/10545/624473
https://www.elsevier.com/tdm/userlicense/1.0/
hdl:10545/624473
Publication dates24 Aug 2016
Publication process dates
Deposited13 Feb 2020, 10:42
Accepted23 Aug 2016
Rights

© 2016 Elsevier Ltd. All rights reserved.

ContributorsUniversity of Bedfordshire, Coventry University, Nottingham University, University of Reading and Brunel University
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