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

Year: 2016

Type: article

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.

Source: Sustainability

DOI: 10.3390/su8030200

Authors: Gun Yu, Kyoung-Min Kwon, Joonkyum Lee, Hojin Jung

Institutions: Hongik University, Sogang University

Language: English

Topic: Environmental Sustainability in Business

Subfield: Marketing

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $2,896