Corporate “greening” and innovation: a reinterpretation based on historical immortals

Chen, Y, Jiang, S ORCID: https://orcid.org/0000-0003-3811-5113, Lim, K and Morris, D, 2024. Corporate “greening” and innovation: a reinterpretation based on historical immortals. Business Strategy and the Environment. ISSN 0964-4733

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Abstract

We distinguish and explore how two distinct types of green externalities—the Porter hypothesis (PH) effect and the greenwashing effect—would interact with corruption-induced rent-seeking effect to shape corporate innovation, based on negative binomial models fitted on 22,589 observations. Having first established a positive contemporaneous association between greenwashing and innovation, we invoke path dependence by instrumenting corporate greenwashing with geographical proximity measures derived from the cultural origins of 321 historical “nature-integrated” immortals. Likewise, we use historical cronyism networks to instrument corporate rent seeking. We identify a novel positive greenwashing externality, alongside the conventional PH effect and the rent-seeking effect. This suggests that perceived “greenwashing” may actually reflect corporate green championing behaviors in China, significantly influenced by local sociocultural factors. However, the interaction between the two green externalities and the rent-seeking effect is negative, indicating that high rent-seeking intensity may dampen the positive induced innovation effects.

Item Type:	Journal article
Publication Title:	Business Strategy and the Environment
Creators:	Chen, Y., Jiang, S., Lim, K. and Morris, D.
Publisher:	Wiley
Date:	19 December 2024
ISSN:	0964-4733
Identifiers:	Number Type 10.1002/bse.4105 DOI 2330345 Other
Rights:	This is the peer reviewed version of the following article: Chen, Y., Jiang, S., Lim, K., & Morris, D. (2024). Corporate “greening” and innovation: a reinterpretation based on historical immortals. Business Strategy and the Environment, which has been published in final form at https://doi.org/10.1002/bse.4105 This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited.
Divisions:	Schools > Nottingham Business School
Record created by:	Laura Borcherds
Date Added:	13 Jan 2025 10:29
Last Modified:	13 Jan 2025 10:29
URI:	https://irep.ntu.ac.uk/id/eprint/52840

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