Green or nongreen innovation? Different strategic preferences among subsidized enterprises with different ownership types

Zimeng Liu, Xu Li, Xuerong Peng, Seoki Lee

Research output: Contribution to journalArticle

2 Scopus citations

Abstract

Governments often turn to subsidies to boost enterprises’ innovation activities, which gives subsidized enterprises room for allocating the subsidies among different innovation activities. Taking insights from institutional logic theory, this paper proposes that enterprises exhibit different subsidy-allocation behaviors between nongreen and green innovations and that the positive effect of subsidies on nongreen innovation is greater than that on green innovation due to the double-spillover problem that is pertinent to green innovation. Further, this paper argues that innovation intensity varies from privately-owned enterprises to local and central state-owned enterprises and that the underlying reason for this phenomenon is that enterprises with different ownership structures behave with different institutional logics, face different environmental and innovation pressures, and hold different innovative resource and capability endowments. We test these hypotheses by using longitudinal data (2010–2015) on 175 publicly-traded firms in the pharmaceutical industry in China. Overall, the results support most of the hypotheses.

Original languageEnglish (US)
Article number118786
JournalJournal of Cleaner Production
Volume245
DOIs
StatePublished - Feb 1 2020

All Science Journal Classification (ASJC) codes

  • Renewable Energy, Sustainability and the Environment
  • Environmental Science(all)
  • Strategy and Management
  • Industrial and Manufacturing Engineering

Fingerprint Dive into the research topics of 'Green or nongreen innovation? Different strategic preferences among subsidized enterprises with different ownership types'. Together they form a unique fingerprint.

  • Cite this