Dynamic optimal control of firms' green innovation investment and pricing strategies with environmental awareness and emission tax

2021 ◽  
Author(s):  
Dongdong Li
Keyword(s):  
Optimal Control ◽  
Environmental Awareness ◽  
Emission Tax ◽  
Pricing Strategies ◽  
Green Innovation

The driving effect of internal and external environment on green innovation strategy-The moderating role of top management’s environmental awareness

2019 ◽  
Vol 10 (3) ◽  
pp. 342-361 ◽  
Author(s):  
Hongjun Cao ◽  
Zewen Chen
Keyword(s):  
Driving Forces ◽  
Environmental Awareness ◽  
External Environment ◽  
Moderating Effect ◽  
Innovation Strategy ◽  
Innovation Capability ◽  
Green Innovation ◽  
Content Type ◽  
The Relationship ◽  
Market Pressure

Purpose Green innovation strategy is not only a new idea to achieve green development but also the inevitable choice for enterprises to upgrade. At present, the research on the driving forces of green innovation strategy mainly focus on direct impact of single factor, lacking the overall consideration of internal and external environment. At the same time, research on the contingency effect of top management’s environmental awareness is scarce. This paper aims to explore how external environment pressures (policy pressures and market pressures) and internal environment driving force (innovation resources and innovation capability) make enterprises to choose green innovation strategy with moderating effect of top management’s environmental awareness. Design/methodology/approach Based on the sample of 216 enterprises, this paper explores the relationship between policy pressure, market pressure, innovation resources, innovation capability and the green innovation strategy with moderating effect of top management’s environmental awareness from inside and outside driving angle. Findings The results of the hierarchical regression model show, first, the driving effect of factors in the external environment. The coercive policy has an inverted U-shaped impact on the green innovation strategy. The incentive policy and the market pressure both have a significant positive impact on the green innovation strategy. Second, the driving effect of factors in the internal environment. The innovation capability has a significant positive impact on the green innovation strategy. The innovation resources have no significant impact on the green innovation strategy. Third, the moderating effect of top management’s environmental awareness. The relationship between the green innovation strategy and the coercive policy is stronger when the top management’s environmental awareness higher. The relationship between the green innovation strategy and the market pressure is stronger when the top management’s environmental awareness higher. The relationship between the green innovation strategy and the innovation resources is stronger when the top management’s environmental awareness higher. Otherwise, the relationship between the green innovation strategy and the innovation capability is weaker when the top management’s environmental awareness higher. And there is no significant change about the relationship between the green innovation strategy and the incentive policy when the top management’s environmental awareness higher. Originality/value First, the authors have promoted the integrated research on the drivers of the enterprise’s green innovation strategy. From the perspective of internal and external environment driving forces, this paper analyzes the key factors influencing the decision-making of the green innovation strategy. Second, the study has contributed to the strategic choice theory. This paper studies the driving mechanism of the green innovation strategy from a new perspective of the strategic choice theory.

The joint dynamic green innovation and pricing strategies for a hybrid system of manufacturing and remanufacturing with carbon emission constraints

Kybernetes ◽  
2019 ◽  
Vol 48 (8) ◽  
pp. 1699-1730 ◽  
Author(s):  
Zhichao Zhang ◽  
Bengang Gong ◽  
Juan Tang ◽  
Zhi Liu ◽  
Xiaoxue Zheng
Keyword(s):  
Differential Game ◽  
Hybrid System ◽  
Carbon Emission ◽  
Innovation Policy ◽  
Retail Price ◽  
Pricing Strategies ◽  
Green Innovation ◽  
Content Type ◽  
Pricing Decision ◽  
Recycling Policy

Purpose Under the carbon regulation mechanism, managing operational strategies is a challenging task. Green innovation is introduced into a hybrid system of manufacturing and remanufacturing to handle the carbon emission constraints in a dynamic market environment. This paper aims to investigate the joint dynamic green innovation policy and pricing strategies in a hybrid manufacturing and remanufacturing system. Design/methodology/approach This paper first considers a monopolistic manufacturer who offers brand-new products and remanufactured items at the same price to consumers. Subsequently, the authors extend their analyses to distinct pricing strategies for both newly manufactured products and refurnished ones in such a hybrid system. Two different cases are considered: a loose carbon emission constraint and a binding carbon emission constraint. By solving the dynamic optimization problem, the differential game and Pontryagin’s maximum principle are used to obtain the joint green innovation and pricing strategies. Findings The retail price first increases then declines over a single period. The green innovation diminishes in the same pricing decision model, while it first increases then declines in a distinct pricing decision model over a single planning horizon. The green innovation investment as well as the retail price are discouraged by an emission cap and recycling fraction. The distinct retail price fluctuates violently, and they are, in descending order of the highest peak price as follows: the newly manufactured product, the same pricing product and the repaired product. Carbon emission caps that are either too high or too low decrease the revenue of the manufacturer. A small emission constraint margin benefits the manufacturer. The recycling policy, as well as other parameters, affects whether the hybrid system attains the carbon emission constraint or not, which suggests that the recycling policy is complementary to the carbon emission constraint mechanism in the hybrid system. Practical implications These results offer managerial implications to the hybrid system in terms of green innovation, pricing strategies and recycling policy. Originality/value This paper is among the first papers to research the joint dynamic green innovation policy and pricing strategies with/without a carbon emission constraint in a hybrid manufacturing and remanufacturing system with a differential game. Moreover, this paper presents a potential way of investigating other common resource constraints by a differential game in a manufacturing/remanufacturing system or closed loop supply chain.

How top management's environmental awareness affect corporate green competitive advantage: evidence from China

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cuizhen Cao ◽  
Xiujun Tong ◽  
Yunqi Chen ◽  
Yue Zhang
Keyword(s):  
Competitive Advantage ◽  
Positive Impact ◽  
Innovation Management ◽  
Environmental Awareness ◽  
Competitive Advantages ◽  
Green Innovation ◽  
Content Type ◽  
Upper Echelons Theory ◽  
Top Managers

PurposeGreen ambidexterity innovation and green competitive advantage are of great significance to enterprises' sustainable development. From the perspective of upper echelons theory, This paper aims to investigate the role of top managers in gaining green competitive advantage and the intermediary effect of the green ambidexterity innovation between them.Design/methodology/approachThis paper uses empirical data from heavily polluting enterprises in China for constructing a model to infer how enterprises achieve the green competitive advantage.FindingsThe paper shows that (a) top managers' environmental awareness and the green ambidexterity innovation are both positively related to the green competitive advantage of enterprises, while there is a difference between the exploitative green innovation and the exploratory green innovation regarding the heterogeneity; the positive effect of the exploratory green innovation on enterprises' green competitive advantage is greater than that of the exploitative green innovation; (b) the green ambidexterity innovation plays a partial intermediary effect between top managers' environmental awareness and enterprises' green competitive advantage and (c) strategic flexibility positively moderates the relation between the green ambidexterity innovation and the green competitive advantage. The study concludes that top managers' environmental awareness has a significantly positive impact on reinforcing green competitive advantages and adopting the green ambidexterity innovation for heavily polluting enterprises in China.Originality/valueThis paper contributes to the green innovation management literature by offering a theoretical framework for examining how top managers' environmental awareness influences enterprises' green competitive advantage.

Knowledge management practices and green innovation in SMES: the role of environmental awareness towards environmental sustainability

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Rashed Hasan Polas ◽  
Mosab I. Tabash ◽  
Amitab Bhattacharjee ◽  
Guillermo Antonio Dávila
Keyword(s):  
Knowledge Management ◽  
Knowledge Acquisition ◽  
Environmental Awareness ◽  
Knowledge Dissemination ◽  
Green Innovation ◽  
Content Type ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this study is to examine the impact of knowledge management dimensions (i.e. knowledge acquisition, knowledge dissemination and knowledge responsiveness) on green innovation. The study also seeks to determine whether these relationships are mediated by the environmental awareness in small and medium enterprises (SMEs) in the UAE. Design/methodology/approach Data were obtained from a sample of 194 SMEs (two informants from each firm that consist of 388 top managers) in Abu Dhabi, UAE. In this cross-sectional study, convenience random sampling was used. The positivism approach was adopted using a hypothetical statistical induction method. Validated measurement scales were used to measure the study constructs adopted from previous studies. Data were analysed using a quantitative approach with Smart partial least squares structural equation modelling (PLS-SEM) 3.0. Findings The results of the study indicated a positive and significant association between knowledge acquisition, knowledge dissemination and knowledge responsiveness with green innovation. Moreover, the data analysis confirmed that environmental awareness mediates the relationship between knowledge dissemination and green innovation. However, no mediation role of environmental awareness in the relationship between knowledge acquisition and knowledge responsiveness with green innovation was found. Practical implications Knowing how to manage knowledge effectively is considered to be one of the most important aspects of green innovations. Nonetheless, there was a dearth of literature highlighting the relevance of knowledge management for long-term organisational success. The results of this study present practical implications for SME professionals. Green innovation with the support of environmental awareness may help a firm understand and implement the importance of knowledge management into their administrative operations. They can subsequently become eco-innovative ecologically, economically and socially. Originality/value This is one of the very few studies that examine the effect of knowledge management dimensions (knowledge acquisition, knowledge dissemination and knowledge responsiveness) on green innovation in UAE SMEs.

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