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Can public surveillance promote corporate environmental innovation? The mediating role of environmental law enforcement

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  • Zhongju Liao
  • Chen Weng
  • Chen Shen
Abstract
With the increase in public environmental awareness, firms are continuously being required to fulfill environmental responsibilities. Based on stakeholder theory and institutional theory, this study examines the impact of public surveillance on corporate environmental innovation and the mediating role of environmental law enforcement. We selected 30 provinces in China as the research sample from 2011 to 2015. Multiple regression analysis was used to analyze the data by Stata software. We found that public surveillance had a significant positive promoting effect on corporate radical eco‐innovation, but had no significant effect on incremental eco‐innovation; environmental law enforcement had a significant positive promoting effect on both radical and incremental eco‐innovations. In addition, public surveillance was conducive to enhancing environmental law enforcement, which in turn promoted corporate radical eco‐innovation.

Suggested Citation

  • Zhongju Liao & Chen Weng & Chen Shen, 2020. "Can public surveillance promote corporate environmental innovation? The mediating role of environmental law enforcement," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(6), pages 1519-1527, November.
    • Handle: RePEc:wly:sustdv:v:28:y:2020:i:6:p:1519-1527
    DOI: 10.1002/sd.2101
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    6. Ruiqian Li & Ramakrishnan Ramanathan & Guanghua Xu, 2023. "The impact of penalties for environmental violations on corporate environmental responsibility," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(3), pages 1343-1363, June.
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    8. Liao, Zhongju & Chen, Jie & Weng, Chen & Zhu, Cunbin, 2023. "The effects of external supervision on firm-level environmental innovation in China: Are they substantive or strategic?," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 267-277.
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    10. Luhao Liu & Honglin Zhou & Jiaping Xie, 2023. "Dynamic Evolutionary Analysis of the Impact of Outward Foreign Direct Investment on Green Innovation Heterogeneity—From the Perspective of Binary Innovation," Sustainability, MDPI, vol. 15(9), pages 1-15, April.
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    12. Li Dong & Xin Zhang & Jinlong Chen, 2024. "Does Investor Sentiment Drive Corporate Green Innovation: Evidence from China," Sustainability, MDPI, vol. 16(8), pages 1-20, April.
    13. Soesilo, Nining Indroyono & Alfarizi, Muhammad, 2024. "Psycho-social conditions of urban communities in the complexity of waste management: Are awareness and waste banks the main solution?," Socio-Economic Planning Sciences, Elsevier, vol. 93(C).
    14. Fang Huang & Chong Wu, 2024. "Impact of Digital Economy on Carbon Emissions and Its Mechanism: Evidence from China," Sustainability, MDPI, vol. 16(20), pages 1-16, October.
    15. Rixiao Cui & Juanru Wang & Cong Zhou, 2023. "Exploring the linkages of green transformational leadership, organizational green learning, and radical green innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 185-199, January.
    16. Li, Yaya & Cobbinah, Joana & Abban, Olivier Joseph & Veglianti, Eleonora, 2023. "Does green manufacturing technology innovation decrease energy intensity for sustainable development?," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1010-1025.
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    18. Chunling Yu & Toru Morotomi & Qunwei Wang, 2023. "Heterogeneous Effects of Public Procurement on Environmental Innovation, Evidence from European Companies," Sustainability, MDPI, vol. 15(19), pages 1-23, September.

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