Does Executive Green Awareness Promote Corporate Green Innovation-Performance Relationship? Evidence from China

Abstract

This study aims to investigate the impact of executive green awareness on corporate green innovation-performance relationship using a sample of Chinese A-share listed companies. We find that executive green awareness (EGA) positively impacts the green innovation-performance relationship (IPR), and the results are robust after accounting for potential endogeneity issues. Further, we find that the promoting role of EGA is positively moderated by the aggressiveness of corporate strategy. Additional analyses indicate that the impact of EGA is more pronounced for firms with low-ability management, higher marketing capability, and those located in regions with stricter environmental regulations. Overall, these findings suggest that executive green awareness can promote the relationship between corporate green innovation and green performance, which could provide some empirical evidence for both practitioners and regulators.

Keywords: Executive green awareness, Corporate Green Innovation, Firm Performance