Executives' Environmental Awareness and Eco-Innovation: An Attention-Based View

Eco-innovation is conducive to reducing the costs and impacts on the environment. Meanwhile, executives play an important role in the whole process of enterprise innovation. However, it is unclear whether and to what extent executives' environmental awareness (EA) affects eco-innovation (EI). Based on the attention-based view, this study discussed the mediating effect of resource flexibility (RF) on the impact of EA on EI and explored the moderating effect of unabsorbed slack resources (USRs). Using surveys collected from 162 Chinese manufacturing firms, we found that (1) EA has a positive impact on EI; (2) RF partially mediates the relationship between EA and eco-management innovation (EMI) and EA and eco-product innovation (EPI); and (3) the effect of EA on EPI weakens with the level of USRs, but the effect of EA on EMI is not affected by the level of USRs. From the perspective of managers' attention, this study not only enriches the main drivers of eco-innovation but also provides a theoretical and practical framework for the promotion and development of eco-innovation in China.

Automated summary

The study found that executives' environmental awareness has a positive impact on eco-innovation, with resource flexibility playing a mediating role. Unabsorbed slack resources can weaken the effect of environmental awareness on eco-product innovation, but not on eco-management innovation.