CEO Hometown Identity and Firm Green Innovation

Ren, S.; Wang, Y.; Hu, Y.; Yan, J.

Abstract

Drawn on the upper echelons theory, this study investigates how chief executive officer (CEO) hometown identity drives firm green innovation. We propose that CEO hometown identity has a positive impact on a firm's green innovation performance. Furthermore, we explore the moderating role of managerial discretion determined by organizational and environmental factors (i.e., institutional ownership and market complexity). We propose that institutional ownership negatively moderates the positive relationship between CEO hometown identity and green innovation, but market complexity plays a positive moderating role. Using Chinese publicly listed firms from 2002 to 2016 in heavily polluting industries, our findings support these hypotheses. Our research contributes to the upper echelons theory and corporate social responsibility literature and has substantial practical implications.

Citation

Ren, S., Wang, Y., Hu, Y., & Yan, J. (2021). CEO Hometown Identity and Firm Green Innovation. Business Strategy and the Environment, 30(2), 756-774. https://doi.org/10.1002/bse.2652

• Journal Article Type: Article
• Acceptance Date: Sep 25, 2020
• Online Publication Date: Nov 13, 2020
• Publication Date: 2021-02
• Deposit Date: Nov 5, 2020
• Publicly Available Date: Nov 13, 2022
• Journal: Business Strategy and the Environment
• Print ISSN: 0964-4733
• Publisher: ERP Environment
• Peer Reviewed: Peer Reviewed
• Volume: 30
• Issue: 2
• Pages: 756-774
• DOI: https://doi.org/10.1002/bse.2652
• Public URL: https://durham-repository.worktribe.com/output/1251705