Environmental innovation practices and performance: moderating effect of resource commitment

Based on institutional theory and resource based view, this study seeks to examine linkages among institutional pressures, environmental innovation practices and performance. Specially, we test the moderating effect of resource commitment on the consequences of environmental innovation practices. We collected data from 148 manufacturers in Pearl River Delta, China to test the theoretical model. The statistical results reveal that institutional pressures coming from governmentʹs command-and-control instrument, overseas customer pressure and competitive pressure exert significant positive impact on environmental innovation practices, while governmentʹs economic incentive instrument and domestic customer pressure do not work. We also find environmental innovation practices have significant positive impact on firmsʹ environmental performance, while the effect on financial performance should be through the mediating role of environmental performance. The further analysis reveals that the relationship between environmental innovation practices and financial performance is moderated by the level of resource commitment. As resource commitment increases, the financial performance yielded from environmental innovation practices will be better.