Can environmental non‐government organizations promote firms' environmental innovation? The role of environmental regulation and informatization level

Zhongju Liao and Mengnan Zhang

Business Strategy and the Environment, 2024, vol. 33, issue 4, 2641-2650

Abstract: Environmental non‐governmental organizations (ENGOs), as important civil society organizations in the environmental arena, play a role in promoting firms' environmental behavior. Based on institutional theory, this study constructed a relationship model among environmental ENGOs, environmental regulation, informatization level, and environmental innovation. Using data from 31 provinces in China from 2010 to 2021 as research samples, this study investigated the impact of ENGOs on firms' environmental innovation, as well as the mediating role of environmental regulation and the moderating role of the informatization level. The results showed that ENGOs had a positive effect on firms' environmental innovation, and the informatization level negatively moderated the impact of ENGOs on firms' environmental innovation, but environmental regulation did not play a mediating role in the relationship between ENGOs and firms' environmental innovation. Based on the conclusions, this study suggests leveraging the role of ENGOs, strengthening the power of environmental regulation, and improving the informatization level to drive firms' environmental innovation.

Date: 2024
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