Business strategy and sustainable development: Evidence from China

Chen Liu; Dongmin Kong

doi:10.1002/bse.2645

journal article Oct 01, 2020

Business strategy and sustainable development: Evidence from China

Chen Liu

Dongmin Kong

Business Strategy and the Environment Vol. 30 No. 1 pp. 657-670 · Wiley

View at Publisher Save 10.1002/bse.2645

Abstract

AbstractThis study examines whether and how business strategies affect firms' sustainable development from the view of green innovation. We show that firms following prospector strategy engage in less sustainable development behaviors than those following defender strategies. The negative relation between business strategy and green innovation continues to hold when addressing robustness with alternatives of business strategy and green innovation and addressing potential endogeneity with instrumental variable. We further find that political connection strengthens whereas environmental regulation weakens the negative relation between business strategy and green innovation. Finally, we explore the economic consequences of green innovation caused by strategic differences. Regrettably, the win–win situation of environment and development does not come true.

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Metrics

89

Citations

70

References

Details

Published: Oct 01, 2020
Vol/Issue: 30(1)
Pages: 657-670
License: View

Authors

C

Chen Liu

School of Economics Huazhong University of Science and Technology Wuhan Hubei China

D

Dongmin Kong

School of Finance Zhongnan University of Economics and Law Wuhan Hubei China

Funding

National Natural Science Foundation of China Award: 71772178

Cite This Article

Chen Liu, Dongmin Kong (2020). Business strategy and sustainable development: Evidence from China. Business Strategy and the Environment, 30(1), 657-670. https://doi.org/10.1002/bse.2645

Business strategy and sustainable development: Evidence from China

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