How Does CEO's Environmental Awareness Affect Technological Innovation?

In this paper, we conduct an empirical study on the impact of CEOs' environmental awareness on technological innovation. To this end, we obtain a large sample with 7615 observations from Chinese A-share listed firms between the years of 2003 and 2014. Our empirical results show that a CEO'...

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Published inInternational journal of environmental research and public health Vol. 16; no. 2; p. 261
Main Authors Huang, Qinghua, Chen, Xiding, Zhou, Mi, Zhang, Xiaoqin, Duan, Lingling
Format Journal Article
LanguageEnglish
Published Switzerland MDPI AG 17.01.2019
MDPI
Subjects
Administrative Personnel - psychology
Awareness
China
Cognition
Competition
Competitive advantage
Developing countries
Environment
Environmental awareness
Environmental impact
Environmental policy
Environmental protection
Executives
Humans
Hypotheses
Innovations
Inventions - statistics & numerical data
LDCs
Leadership
Managers
Organizations
Product development
R&D
Research & development
Sustainable development
Technological change
China
CEO
environmental awareness
technological innovation
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Abstract In this paper, we conduct an empirical study on the impact of CEOs' environmental awareness on technological innovation. To this end, we obtain a large sample with 7615 observations from Chinese A-share listed firms between the years of 2003 and 2014. Our empirical results show that a CEO's environmental awareness has a significant positive impact on technological innovation of his/her enterprise. Environmentally conscious CEOs will invest more in R&D and obtain more patents. This will help their enterprises achieve higher efficiency of technological innovation. Furthermore, the environmental awareness of a CEO has a more significant impact on technological innovation if his/her enterprise is subject to a higher level of monitoring. We also conduct robustness check of our findings and provide managerial insights and proactive government policies to raise the environmental awareness of CEOs and improve the innovation vitality of enterprises.
AbstractList In this paper, we conduct an empirical study on the impact of CEOs’ environmental awareness on technological innovation. To this end, we obtain a large sample with 7615 observations from Chinese A-share listed firms between the years of 2003 and 2014. Our empirical results show that a CEO’s environmental awareness has a significant positive impact on technological innovation of his/her enterprise. Environmentally conscious CEOs will invest more in R&D and obtain more patents. This will help their enterprises achieve higher efficiency of technological innovation. Furthermore, the environmental awareness of a CEO has a more significant impact on technological innovation if his/her enterprise is subject to a higher level of monitoring. We also conduct robustness check of our findings and provide managerial insights and proactive government policies to raise the environmental awareness of CEOs and improve the innovation vitality of enterprises.
According to Upper Echelon Theory [13], the strategic choice of a company is, to a large extent, influenced by personal cognition of its CEO. [...]monitoring may play an important role between a CEO’s environmental awareness and the technological innovation of his/her enterprise. [...]CEO’s stronger awareness of environmental protection may be similar to environmental supervision and has similar positive effect on enterprise innovation. In such a dilemma, technological innovation is crucial to driving the company’s upgrade. [...]in developing countries, CEOs with stronger environmental awareness can more clearly understand the cost pressure brought by development of environmental strategy.
Author Huang, Qinghua
Chen, Xiding
Zhou, Mi
Duan, Lingling
Zhang, Xiaoqin
AuthorAffiliation 1 School of Economics and Management, Southwest University, Chongqing 400715, China; hqh@swu.edu.cn (Q.H.); z19951001@email.swu.edu.cn (M.Z.); zxq0113@email.swu.edu.cn (X.Z.)
2 Department of Finance, Wenzhou Business College, Wenzhou 325035, Zhejiang, China
AuthorAffiliation_xml – name: 1 School of Economics and Management, Southwest University, Chongqing 400715, China; hqh@swu.edu.cn (Q.H.); z19951001@email.swu.edu.cn (M.Z.); zxq0113@email.swu.edu.cn (X.Z.)
– name: 2 Department of Finance, Wenzhou Business College, Wenzhou 325035, Zhejiang, China
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Issue 2
Keywords CEO
environmental awareness
technological innovation
Language English
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Snippet In this paper, we conduct an empirical study on the impact of CEOs' environmental awareness on technological innovation. To this end, we obtain a large sample...
In this paper, we conduct an empirical study on the impact of CEOs’ environmental awareness on technological innovation. To this end, we obtain a large sample...
According to Upper Echelon Theory [13], the strategic choice of a company is, to a large extent, influenced by personal cognition of its CEO. [...]monitoring...
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StartPage 261
SubjectTerms Administrative Personnel - psychology
Awareness
China
Cognition
Competition
Competitive advantage
Developing countries
Environment
Environmental awareness
Environmental impact
Environmental policy
Environmental protection
Executives
Humans
Hypotheses
Innovations
Inventions - statistics & numerical data
LDCs
Leadership
Managers
Organizations
Product development
R&D
Research & development
Sustainable development
Technological change
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Title How Does CEO's Environmental Awareness Affect Technological Innovation?
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