Government’s Green Grip: Multifaceted State Influence on Corporate Environmental Actions in China

Strategic Management Journal, Forthcoming

43 Pages Posted: 9 Oct 2017

See all articles by Ruxi Wang

Ruxi Wang

Renmin Business School, Renmin University of China

Frank Wijen

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM)

Pursey P.M.A.R. Heugens

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM)

Date Written: October 4, 2017

Abstract

Emerging economies such as China enjoy economic expansion but also face dramatic environmental challenges. China’s government is a central actor in both stimulating economic activities and pursuing environmental protection. Drawing on panel data and in-depth interviews, we examined the influence of the Chinese state at multiple levels on the environmental actions of publicly listed firms. The results show that corporate environmental actions follow an inverted U-shape as control of environmental practices moves from the central government to the most decentral administrative level. This curvilinear relationship is positively moderated by the stringency of environmental regulation and negatively moderated by environmental monitoring capacity. We conclude that state influence on corporate environmental actions in China is multifaceted and subject to ‘policy-policy decoupling’.

Keywords: corporate environmentalism, China, environmental actions, government power, environmental policy

JEL Classification: G32, G34, G38

Suggested Citation

Wang, Ruxi and Wijen, Frank and Heugens, Pursey P.M.A.R., Government’s Green Grip: Multifaceted State Influence on Corporate Environmental Actions in China (October 4, 2017). Strategic Management Journal, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3047640 or http://dx.doi.org/10.2139/ssrn.3047640

Ruxi Wang (Contact Author)

Renmin Business School, Renmin University of China ( email )

Room 809B
Mingde Building
Beijing, Beijing 100872
China

Frank Wijen

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

Burg. Oudlaan 50
Room T07-38
3000 DR Rotterdam, 3000 DR
Netherlands
31 10 4081985 (Phone)

Pursey P.M.A.R. Heugens

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands
0031 10 408 2365 (Phone)
0031 10 408 9012 (Fax)

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