Kesidou, E. orcid.org/0000-0002-5729-8624, Krammer, S.M.S. and Wu, L. (Accepted: 2024) Subnational institutions, firm capabilities, and eco-innovation. Industrial and Corporate Change. ISSN 0960-6491 (In Press)
Abstract
We examine the role institutional pressures, at the subnational level, play in the generation of eco-innovations and explicitly consider how they interact with firms’ heterogeneous capabilities and ownership characteristics. Theoretically, we combine elements from institutional theory with the resource-based view of the firm to develop our hypotheses. Empirically, we use a novel dataset over the period 2003–2013 compiled from several sources: (a) environmental regulations (city-level) from the China Environmental Statistical Yearbooks and City Statistical Yearbooks; (b) green patents (firm-level) from the China National Intellectual Property Administration; and (c) ownership (firm-level) from the National Bureau of Statistics. Our econometric analysis employs an instrumental variable (IV) approach that controls for endogeneity, and a negative binomial multilevel methodology for robustness. The results show that institutional pressures associated with environmental regulations, implemented at city level, lead to more green patents produced by firms in these jurisdictions. Crucially, the effectiveness of environmental regulation is enhanced when firms invest more in their internal technological capabilities. Finally, we find that a firm’s affiliation with a business group enhances the positive effects of regulations in terms of the production of eco-innovations.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Economics Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 04 Mar 2024 13:13 |
Last Modified: | 17 Apr 2024 15:11 |
Status: | In Press |
Publisher: | Oxford University Press |
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Filename: Subnational Institutions Capabilities Eco-innovation_ICC_2024.pdf