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Curvilinear relationship between corporate innovation and environmental sustainability

Title
Curvilinear relationship between corporate innovation and environmental sustainability
Authors
Lee J.Kim S.-J.
Ewha Authors
김상준
SCOPUS Author ID
김상준scopus
Issue Date
2017
Journal Title
Sustainability (Switzerland)
ISSN
2071-1050JCR Link
Citation
vol. 9, no. 7
Keywords
Curvilinear relationshipEnvironmental performanceEnvironmental sustainabilityInnovationPatentTrade-offcost
Publisher
MDPI AG
Indexed
SCIE; SSCI; SCOPUS scopus
Abstract
This paper proposes and tests the impacts of firms' innovation activities, such as patents, on their involvement in environmental sustainability, such as environmental performance. Combining resource allocation and eco-innovation perspectives assuming constant levels of trade-offcosts, this study proposes diminishing trade-offcosts between corporate innovation and environmental sustainability. Specifically, this research hypothesizes a U-shaped relationship, suggesting that a firm will suffer trade-offcosts between innovation and environment-oriented activities up to a certain level, and that once a firm accumulates an adequate level of innovation, it may reduce trade-offcosts, caring more for environmental issues. A proposed hypothesis is supported by empirical testing of a sample of 11,657 firm-year observations with 1564 firms, spanning from 1991 to 2010. We also found that corporate patenting activities are relevant to undesirable impacts on environmental performance overall, instead of satisfying outcomes. We suggest that firms and managers should care for environmental sustainability issues once they accumulate an adequate level of innovation assets through patenting activities. © 2017 by the authors.
DOI
10.3390/su9071267
Appears in Collections:
경영대학 > 경영학전공 > Journal papers
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