Dual‐threshold effect of resources and governance on the role of regulations in green innovation: Novel insights from a four‐regime panel approach

Pengcheng Tang, Xuan Liu, Lili Mi, Guolin Wang and Junyu Wang

Business Strategy and the Environment, 2025, vol. 34, issue 2, 2667-2679

Abstract: Diverging from existing literature that predominantly examines the individual impacts of environmental regulations, financial resources, and governance focus on green innovation, our study introduces an innovative theoretical framework based on institutional theory, resource‐based view, and attention‐based view to elucidate the collective interplay of these factors in “going green.” Employing a state‐of‐the‐art threshold regression with two threshold variables, our empirical results highlight that only when critical values for both financial resources and governance focus on environmental concerns are simultaneously achieved, does the negative influence of environmental regulations on green innovation transform into a positive effect. Furthermore, less than 10% of observations enter the corresponding threshold interval, with financial resources acting as a peripheral condition in contrast to the central role of governance focus. These findings have significant practical implications for the implementation of environmental regulations and green financial policies, particularly in China and similar emerging economies, where governmental intervention remains pivotal in environmental stewardship.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/bse.4040

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:bstrat:v:34:y:2025:i:2:p:2667-2679

Ordering information: This journal article can be ordered from
http://onlinelibrary ... 1002/(ISSN)1099-0836

Access Statistics for this article

Business Strategy and the Environment is currently edited by Richard Welford

More articles in Business Strategy and the Environment from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().