Can Company Size and Region Shape the Sustainability Landscape?: Exploring Their Moderating Effects on Green Innovation in Chinese Manufacturing

Can Company Size and Region Shape the Sustainability Landscape?: Exploring Their Moderating Effects on Green Innovation in Chinese Manufacturing

Chao Chen, Boonsub Panichakarn
DOI: 10.4018/IJISSCM.346969
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Abstract

This research investigates the status of green innovation within the supply chain context, emphasizing the roles of organizational support, competitive pressure, and relative advantage. A total of 286 valid samples collected from employees within the supply chain of the manufacturing industry in China were analyzed. Findings reveal significant impacts of organizational support, competitive pressure, and relative advantage on green supply chain innovation adoption, with nuances observed based on organizational characteristics and regional differences. Competitive pressure is a key driver for small organizations to adopt green supply chain innovations, whereas the relative advantage significantly influences larger organizations' adoption intentions. Organizations in different regions exhibit different adoption intentions of green supply chain innovations. Practical implications for managers in different contexts are discussed, emphasizing the importance of tailored strategies to leverage strengths and mitigate challenges in fostering sustainable and innovative supply chains.
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Literature Review And Hypotheses Development

Adoption Intention of Green Supply Chain Innovation

Green innovation encompasses improvements in products, processes, and management practices undertaken by enterprises to mitigate adverse environmental impacts and promote sustainable development (Khan et al., 2021). Its scope is multifaceted, covering tangible components like products and processes, as well as intangible elements such as management methods (Singh et al., 2020). The primary goal is to reduce negative externalities on the environment, emphasizing a dedication to sustainable development that aligns economic prosperity, societal well-being, and environmental stewardship (Yuan & Cao, 2022). In essence, green innovation signifies a proactive commitment by enterprises to engage in transformative, environmentally beneficial activities contributing to broader environmental improvement and sustainable business practices (Song & Yu, 2018). Approaching green innovation from a supply chain perspective underscores the interconnectedness of various business operations, highlighting the need for a holistic integration of environmentally conscious practices throughout the entire production and distribution continuum.

From an organizational standpoint, adoption intention of green supply chain innovation involves the intentional integration of environmentally sustainable practices throughout the entire supply chain (Zailani et al., 2015). It includes implementing innovative approaches in product design, manufacturing processes, and management systems to reduce negative environmental impacts (Aboelmaged & Hashem, 2019). Organizations strategically embrace green innovation within their supply chains to enhance resource efficiency, minimize waste, and achieve sustainability goals (Cherrafi et al., 2018). This adoption reflects a proactive commitment to environmentally conscious decision-making, demonstrating a comprehensive organizational effort to balance economic objectives with ecological responsibility.

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