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Environmental Performance: Interplay Between the Roles of Process Innovation Capability and Managerial Innovation Implementation

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Management Innovation

Abstract

Unlike a large portion of previous innovation research that has focused on performance consequences of the adoption of technological innovations, this study focuses on the benefits gained from the implementation of managerial innovations. We examine the mediating role of managerial innovation implementation on the influences of technological process innovation capability and pressure from external stakeholders on environmental performance. We develop hypotheses and test them using survey data from 192 ISO 14001 certified facilities in the US. The results suggest that extent of implementation partially mediate the effect of process innovation capability but fully mediate the effect of external pressure on environmental performance. We discuss the implications of these findings for research and practice on the implementation of managerial innovations.

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Correspondence to Deepa Aravind .

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Appendix 1: Measures

Appendix 1: Measures

Construct

Indicator

Environmental performance

Survey items: (rated on 7-point Likert scale)

How does your facility compare to other facilities in your industry along the following dimensions? (Much below average..Average..Much above average)

1. Complying with environmental regulations

2. Limiting environmental impact beyond complying with regulations

3. Preventing environmental accidents

4. Lessening the impact of environmental accidents

5. Educating employees about the environment

6. Environmental performance

Extent of MI implementation

Survey items: (rated on 7-point Likert scale)

This question pertains to the implementation and perceptions of the ISO 14001 EMS at your facility. To what extent (Not at all..To a large extent):

1. Are the documents created for the purpose of ISO 14001 used in daily practice?

2. Has the ISO 14001 system become part of your regular routine?

3. Are preparations for external audits made at the last minute? (reverse-scored)

4. Is the system regularly ignored? (reverse-scored)

(Correlated this measure with average emissions data from US TRI database – obtained a significant negative correlation)

Process innovation capability

Survey items: (rated on 7-point Likert scale)

Relative to your major competitors, your facility focuses on (Strongly disagree..Strongly agree):

1. Being the first in the industry to try new methods and technologies

2. Using the latest technology in production

3. Capital investment in new equipment and machinery

4. Being a leader in process innovation

External pressures

Survey items: (rated on 7-point Likert scale)

How strong are the following forces in pressuring your facility to be environmentally responsible? (No pressure..Moderate pressure..Intense pressure)

1. Immediate suppliers of your facility

2. Regulatory agencies

3. Environmental non-governmental organizations (NGOs)

4. Neighbors of your facility

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Aravind, D., Damanpour, F., Devece, C. (2014). Environmental Performance: Interplay Between the Roles of Process Innovation Capability and Managerial Innovation Implementation. In: Hervás-Oliver, JL., Peris-Ortiz, M. (eds) Management Innovation. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-03134-7_3

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