Green and competitive? An empirical test of the mediating role of environmental innovation strategy

Abstract

This study examines links between the adoption of an environmental innovation strategy and firms' business performance. It illustrates ways in which an environmental innovation strategy is itself influenced by significant environmental pressures, including government environmental regulation, perceived importance of stakeholder pressures, and managerial environmental concerns. Survey data from the chemical industry in Jordan show that (1) environmental innovation strategy is associated with improved perceived firms' business performance; (2) the adoption of an environmental innovation strategy is influenced by certain environmental pressure forces, and (3) environmental innovation strategy fully mediates between certain environmental pressure forces and firms' business performance.