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To Be Green or Not To Be? Understanding The Impact of Institutional Pressure on Firm Environmental and Financial Performance and The Role of Corporate Environmental Responsiveness and Absorptive Capacity
Bibliografi
Author:
Lembana, Devi Angrahini Anni
;
Liang, Wen Ke
(Advisor);
Yu Yu Chang
(Advisor)
Topik:
Absorptive Capacity
;
Corporate Environmental Responsiveness
;
Corporate Environmental Performance
;
Corporate Financial Performance
;
Firm Technology Development
;
Institutional Pressure
;
Top Management Commitment
Bahasa:
(EN )
Penerbit:
Southern Taiwan University of Science and Technology
Tempat Terbit:
Tainan, Taiwan
Tahun Terbit:
2022
Jenis:
Theses - Dissertation
Fulltext:
Disertasi Devi Angrahini.pdf
(1.42MB;
3 download
)
Abstract
Institutional pressure for environmental protection and sustainability requires the firm to adhere to industrial standards to gain legitimacy to thrive in business competition. Developing policies and putting them into practice in day-to-day operations to minimize the environmental effect of corporate activities, if any, is essential for long term sustainability for a firm's financial and environmental performance. By combining the resource-based view, dynamic capabilities, and institutional pressure theory, this study investigates the relationship between institutional pressure and corporate performance using environmental responsiveness and absorptive capacity as a mediator. We also look into how top management's commitment and organizational innovation affect a firm's strategic implementation. By testing on a sample that includes 493 Indonesian and Taiwanese enterprises in technology-intensive industries, our findings show that corporate environmental responsiveness and absorptive capacity as a company competitive advantage mediate the relationship between institutional pressure and corporate performance. Specifically, organizational innovation strengthens the relationship between absorptive capacity and financial success, as well as the relationship between environmental responsiveness and environmental performance. Surprisingly, we found that top management commitment reduces the relationship between firm environmental responsiveness with financial and environmental performance. The cross-country comparison between developed countries (Taiwan) and developing countries (Indonesia) is discussed in this study. Theoretical contributions and practical implications are presented.
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