Environmental regulations, innovation and firm performance: a revisit of the Porter hypothesis
AffiliationUniversity of Bedfordshire
University of Reading
public benefits of sustainability
private benefits of sustainability
N100 Business studies
MetadataShow full item record
AbstractThis paper examines the relationships between environmental regulations, firms' innovation and private sustainability benefits using nine case studies of UK and Chinese firms. It aims to unravel the mechanisms by which a firm's environmental behaviour in improving its private benefits of sustainability is influenced by its relationship with the government, which primarily enacts regulations to maximise public sustainability benefits in the interests of society as a whole. The paper takes its cue from the Porter hypothesis to make some broad preliminary assumptions to inform the research design. A conceptual framework was developed through inductive case studies using template analysis. The results show that depending on firms' resources and capabilities, those that adopt a more dynamic approach to respond to environmental regulations innovatively and take a proactive approach to manage their environmental performance are generally better able to reap the private benefits of sustainability.
CitationRamanathan R., He Q., Black A., Ghobadian A., Gallear D. (2016) 'Environmental regulations, innovation and firm performance: a revisit of the Porter hypothesis', Journal of Cleaner Production 155 (2) 79-92.
JournalJournal of Cleaner Production
SponsorsA part of the research for this paper was supported by funding from Nottingham Innovative Manufacturing Research Centre.
The following license files are associated with this item:
- Creative Commons
Except where otherwise noted, this item's license is described as Green - can archive pre-print and post-print or publisher's version/PDF