When Do Environmental Regulations Lead to Green Practices? The Role of Resource Commitment and Corporate Entrepreneurship

Shumin Liu, Qile He, Zhibin Lin, Nicholas O'Regan and Zuchang Zhong

Business Strategy and the Environment, 2025, vol. 34, issue 8, 9892-9907

Abstract: Environmental regulations increasingly pressure firms to adopt green practices, yet their effectiveness remains debated. Drawing on institutional theory and the resource‐based view, this study investigates the mechanisms linking environmental regulations to green supply chain management (GSCM) practices. We propose and test a moderated mediation model using data from 231 Chinese manufacturers. Results show that circular‐oriented resource commitment mediates the regulation–GSCM relationship, whereas corporate entrepreneurship selectively moderates the path from regulations to resource commitment. These findings extend theory by showing how regulatory pressures shape resource deployment in environmental management and how entrepreneurial orientation enhances firms' ability to transform regulatory requirements into strategic resource commitments.

Date: 2025
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