Exploration and Exploitation as Antecedents of Environmental Performance: The Moderating Effect of Technological Dynamism and Firm Size

Gun Jea Yu, Kyoung-Min Kwon, Joonkyum Lee and Hojin Jung
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Gun Jea Yu: College of Business Administration, Hongik University, 94 Wausan-ro, Mapo-gu, Seoul 04066, Korea
Kyoung-Min Kwon: College of Business Administration, Hongik University, 94 Wausan-ro, Mapo-gu, Seoul 04066, Korea
Joonkyum Lee: Sogang Business School, Sogang University, 35 Baekbeom-ro, Mapo-gu, Seoul 04107, Korea
Hojin Jung: College of Business Administration, Hongik University, 94 Wausan-ro, Mapo-gu, Seoul 04066, Korea

Sustainability, 2016, vol. 8, issue 3, 1-15

Abstract: This study aims to expand our understanding of environmental performance by adopting exploration and exploitation concepts, which are key types of firm innovation. We reveal exploration and exploitation as two important antecedents of proactive and reactive environmental performance. We also identify the conditions under which the distinct effects of these two types of innovation are moderated. Using a sample of 2060 firm-year observations over a 12-year period in various industries, we find that firm exploration positively affects proactive environmental performance, whereas firm exploitation positively influences reactive environmental performance. Furthermore, we find that the positive effect of exploitation on reactive environmental performance intensifies when technological dynamism is high, and the positive effect of exploration on proactive environmental performance strengthens when a firm is large.

Keywords: environmental performance; exploration and exploitation; moderating effect (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:8:y:2016:i:3:p:200-:d:64412

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