Effects of Green Motives on Firm Performance (Research Paper Sample)

EFFECTS OF GREEN MOTIVES ON FIRM PERFORMANCE AFFECTING ENVIRONMENTAL CORPORATE SOCIAL RESPONSIBILITY
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ABSTRACT
Technological innovations have been on rise in the recent past. In the 21st Cc, there has been a great call towards ensuring sustainability. Therefore firms are not only directed by private benefits but have much=h to take care of including the environment and the society at large. However, the concept and the motives that firms should relate to achieve have remained widely under researched and thus they have been misunderstood. The current research was thus conducted with a main aim of assessing the effect of green motives on firm’s performance. The analysis broke green motives into three major categories including influential, moral, and relational. Results were analyzed and presented in tables. To capture the objectives data from 164 companies was collected and descriptive, correlations and regressions were used.
The study found that there existed a positive significant influence of all the three aspects of green motives on firm performance. It was also revealed that radical innovation behavior has a positive influence on firm performance. Technology capabilities was found to have significant moderating effect of the three green motives on firm performance. In addition, entrepreneurial orientation was seen to significantly moderate radical innovative behavior and firm performance.
The study results were seen to have an implication on the Chinese companies as well as the US companies and more specifically in relation to technological innovation, use of green motives, and embracement of entrepreneurial orientation.
Thus the study concluded that firm should ensure use of green motives, should embrace technological management capabilities, and should be at par with entrepreneurial orientation. The study was however limited in scope, due to lack of information form some companies, time, and finances. Thus recommended for further analysis.
Key word: Green motives, technology management, entrepreneurial orientation, radical innovative behavior, and firm performance.
Table of Contents TOC \o "1-3" \h \z \u ABSTRACT PAGEREF _Toc37586975 \h 2CHAPTER ONE: INTRODUCTION PAGEREF _Toc37586976 \h 51.1: BACKGROUND TO THE STUDY AND SIGNIFICANCE PAGEREF _Toc37586977 \h 51.1.1: Background PAGEREF _Toc37586978 \h 51.1.2: Purpose and Significance of the Study PAGEREF _Toc37586979 \h 6CHAPTER TWO: THEORETICAL FOUNDATIONS AND HYPOTHESIS DEVELOPMENT PAGEREF _Toc37586980 \h 72.1: Green Motives PAGEREF _Toc37586981 \h 72.2: Green Motives and Firm Performance PAGEREF _Toc37586982 \h 82.2.1: Instrumental Motives and Firm Performance PAGEREF _Toc37586983 \h 102.2.2: Relational Motives and Firm Performance PAGEREF _Toc37586984 \h 112.2.3: Moral Motives and Firm Performance PAGEREF _Toc37586985 \h 132.3: Radical Innovation Behavior as a Mediator PAGEREF _Toc37586986 \h 142.3.1: Green Motives and Radical Innovation Behavior PAGEREF _Toc37586987 \h 142.3.2: Radical Innovation Behavior and Firm Performance PAGEREF _Toc37586988 \h 152.4: The Moderating role of Technology Management Capability PAGEREF _Toc37586989 \h 162.5: Entrepreneurial Orientation as a Moderator of RIB and FP PAGEREF _Toc37586990 \h 172.7: Summary PAGEREF _Toc37586991 \h 18CHAPTER 3: RESEARCH DESING PAGEREF _Toc37586992 \h 193.1: Research Design PAGEREF _Toc37586993 \h 193.2: Data Collection PAGEREF _Toc37586994 \h 193.3: Measurements PAGEREF _Toc37586995 \h 193.3.1: Green Motives PAGEREF _Toc37586996 \h 203.3.2: Firm Performance PAGEREF _Toc37586997 \h 213.3.3: Radical Innovation Behavior PAGEREF _Toc37586998 \h 213.3.4: Technology Management Capability PAGEREF _Toc37586999 \h 213.3.5: Entrepreneurial Orientation PAGEREF _Toc37587000 \h 223.4: Data Analysis PAGEREF _Toc37587001 \h 233.4.1: Descriptive statistics and correlations PAGEREF _Toc37587002 \h 233.4.2: Reliability PAGEREF _Toc37587003 \h 233.4.3: Validity PAGEREF _Toc37587004 \h 243.4.4: Common method variance PAGEREF _Toc37587005 \h 243.5: Results PAGEREF _Toc37587006 \h 253.5.1: Testing of the research hypothesis PAGEREF _Toc37587007 \h 253.5.2: The moderating effect of TMC on effect of GM on RIB PAGEREF _Toc37587008 \h 273.5.3: The moderating effect of EO on effect of RIB on FP PAGEREF _Toc37587009 \h 283.6: Summary PAGEREF _Toc37587010 \h 28CHAPTER 4: DISCUSSIONS AND SUGGESTION FOR CHINESE AND US COMPANIES PAGEREF _Toc37587011 \h 284.1: Discussion PAGEREF _Toc37587012 \h 284.2: Suggestions for Promoting Chinese and US Firms PAGEREF _Toc37587013 \h 304.2.1: Promotion of green motives PAGEREF _Toc37587014 \h 304.2.2: promote technology capabilities PAGEREF _Toc37587015 \h 304.2.3: promote entrepreneurial orientation PAGEREF _Toc37587016 \h 304.3: practical implications PAGEREF _Toc37587017 \h 314.4: summary PAGEREF _Toc37587018 \h 31CONCLUSIONS PAGEREF _Toc37587019 \h 31REFERENCES PAGEREF _Toc37587020 \h 33
CHAPTER ONE: INTRODUCTION
1.1: BACKGROUND TO THE STUDY AND SIGNIFICANCE
1.1.1: Background
Technological advancement has been at the heart of most organizations. Research has shown that most firms achieve a competitive edge through use of technologies. Most importantly, technology adoption has led to improved efficiency in most firms. Most firms in an urge to being competitive have opted to move green. This has been necessitated by the dynamism in the external business environment (10, 20). There has also been economic trends towards corporate social responsibility. Green motives has thus become a rising concept in the recent past as firms try to adopt techniques that are environmentally sustainable.
Therefore, the technologies have been seen to have a positive impact on the environment. Although it has been seen to improve sustainability, economically, most of the technologies has been seen to slow growth and efficiency of a firm that has its major objective as profit maximization. Critics to the technologies have gained momentum following the theory of rationality and freedom of choice. Energy sources have also been limited and expensive which although maximizing social benefits, the private benefits have been compromised. Contrary, going green has been seen to have far much reaching advantages. For instance, it has been seen to link firms with its major stakeholders (5). Most of the stakeholders have also helped firms in development. In addition, research has shown that the green motives have a long-run effect.
Green motives defined as a part of environmental corporate social responsibility, is seen as the aspect of business that ensures firms do not only work to achieve their objectives but have a main objective as achievement of societal benefits. There has been major pressure including; Instrumental Motives, Relational Motives, and Moral Motives. However, the concept in relation to its application and performance has remained widely under-discussed. Moreover, there has been scanty information with regards to green motives effect on firm’s performance. Therefore, the current analysis will seek to fill this gap through the below stated objectives;
The genera purpose of the study will be to assess the effect of green motives of firm’s performance and corporate environmental social responsibility.
The specific objectives;
1 To characterize firms in US and China making use of green motives
2 To assess the effect of green motives on firm performance
3 To assess the moderating effect of technology performance on radical innovation
1.1.2: Purpose and Significance of the Study
Although going green has scanty of literature, it is important to note that it has wide thrilling benefits. Thus, the contributions of the current survey will be enriching at different points of governance. For instance, it is worth noting that green motives helps firms in achievement of CSR which is an important package for development and achievement of competitive edge. Thus the results from the current analysis on how green motives have been applied in China and US will help other firms to lead and adopt these technologies.
In addition, realization of a positive significant effect of green motives on firm’s performance will be of importance to all stakeholders. This is starting from the firm which will yearn to adopting more practices so that they can improve performance. In addition, investors will realize higher returns on investment through the technologies and thus will be more engaged in their adoption. Also the government will get more revenues, and will also be able to achieve its main goal of ensuring environmental sustainability. Consequently, they will be able to launch campaigns all over satisfied that firms will benefits, and the whole ecosystem will be sustained.
The current study aims at filling gaps that have been realized through literature. Since the concept of green motives have not been explored, and no research has been done on firms in China and US, the current study will aim at looking at how different firms have made use of the green technologies. In addition, the study will extend to assessing its effect on performance and CSR. The current research will thus act as a back-up to existing literature, and thus build to the body of knowledge that can be used for further research.
One of the major contribution of the current study apart from building to existing knowledge, will be leading to a detailed overview of the effect of green motives on firm performance. Past research have concentrated on assessing the factors influencing adoption and the intensity of adoption. They have not extended to looking at how it affect performance and CSR which will be a ...