Effect of green innovation strategy on firm-idiosyncratic risk: a competitive action perspective
Despite increasing concern for corporate environmental responsibility in numerous industries, the relationship between green innovation strategy (GIS) and idiosyncratic risk is a rarely scrutinised topic, particularly in the automotive domain. In this study, we empirically explore the association be...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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John Wiley and Sons
2020
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| Online Access: | http://psasir.upm.edu.my/id/eprint/88602/ http://psasir.upm.edu.my/id/eprint/88602/1/ABSTRACT.pdf |
| _version_ | 1848860654258094080 |
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| author | Lin, Woon Leong Mohamed, Azali Sambasivan, Murali Yip, Nick |
| author_facet | Lin, Woon Leong Mohamed, Azali Sambasivan, Murali Yip, Nick |
| author_sort | Lin, Woon Leong |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Despite increasing concern for corporate environmental responsibility in numerous industries, the relationship between green innovation strategy (GIS) and idiosyncratic risk is a rarely scrutinised topic, particularly in the automotive domain. In this study, we empirically explore the association between GIS and idiosyncratic risk and analyse the moderating role played by the firm's competitive action. We rely on the secondary information sourced for 132 top automotive firms, in the period ranging from 2011 to 2017 by applying the system generalised methods of moments estimator to the dynamic panel data model. Our findings indicate that GIS significantly reduces the idiosyncratic risk of all firms, and this relationship strengthens with the increase in the competitive action of the firms. Our evidence supports “it pays to be green” firm heterogeneity argument. This study highlights the academic and managerial implications and focuses on the environmental issues published in environmental management literature. |
| first_indexed | 2025-11-15T12:48:40Z |
| format | Article |
| id | upm-88602 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T12:48:40Z |
| publishDate | 2020 |
| publisher | John Wiley and Sons |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-886022021-12-21T07:16:28Z http://psasir.upm.edu.my/id/eprint/88602/ Effect of green innovation strategy on firm-idiosyncratic risk: a competitive action perspective Lin, Woon Leong Mohamed, Azali Sambasivan, Murali Yip, Nick Despite increasing concern for corporate environmental responsibility in numerous industries, the relationship between green innovation strategy (GIS) and idiosyncratic risk is a rarely scrutinised topic, particularly in the automotive domain. In this study, we empirically explore the association between GIS and idiosyncratic risk and analyse the moderating role played by the firm's competitive action. We rely on the secondary information sourced for 132 top automotive firms, in the period ranging from 2011 to 2017 by applying the system generalised methods of moments estimator to the dynamic panel data model. Our findings indicate that GIS significantly reduces the idiosyncratic risk of all firms, and this relationship strengthens with the increase in the competitive action of the firms. Our evidence supports “it pays to be green” firm heterogeneity argument. This study highlights the academic and managerial implications and focuses on the environmental issues published in environmental management literature. John Wiley and Sons 2020 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/88602/1/ABSTRACT.pdf Lin, Woon Leong and Mohamed, Azali and Sambasivan, Murali and Yip, Nick (2020) Effect of green innovation strategy on firm-idiosyncratic risk: a competitive action perspective. Business Strategy and the Environment, 29 (3). 886 - 901. ISSN 0964-4733; ESSN: 1099-0836 https://onlinelibrary.wiley.com/doi/full/10.1002/bse.2405 10.1002/bse.2405 |
| spellingShingle | Lin, Woon Leong Mohamed, Azali Sambasivan, Murali Yip, Nick Effect of green innovation strategy on firm-idiosyncratic risk: a competitive action perspective |
| title | Effect of green innovation strategy on firm-idiosyncratic risk: a competitive action perspective |
| title_full | Effect of green innovation strategy on firm-idiosyncratic risk: a competitive action perspective |
| title_fullStr | Effect of green innovation strategy on firm-idiosyncratic risk: a competitive action perspective |
| title_full_unstemmed | Effect of green innovation strategy on firm-idiosyncratic risk: a competitive action perspective |
| title_short | Effect of green innovation strategy on firm-idiosyncratic risk: a competitive action perspective |
| title_sort | effect of green innovation strategy on firm-idiosyncratic risk: a competitive action perspective |
| url | http://psasir.upm.edu.my/id/eprint/88602/ http://psasir.upm.edu.my/id/eprint/88602/ http://psasir.upm.edu.my/id/eprint/88602/ http://psasir.upm.edu.my/id/eprint/88602/1/ABSTRACT.pdf |