Determinants of firm’s decision to produce green products in Dong Nai province
Date Published:
25/12/2022
Online Published:
25/12/2022
Section:
Research Articles
Main Article Content
Abstract
This study analyzes the determinants of firm’s decisions to produce green products in Dong Nai province. We survey 300 firms which are currently doing business in Dong Nai in 2019. A combination of the propensity score matching (PSM) method and the logit regression addresses the problem of heterogeneity between observations in the empirical model. The result implies that a firm that (i) has assigned a leader to take responsibility for green growth; (ii) has an investment in emission treatment equipment; (iii) has procedure guidance for energy saving; and (iv) has an improvement in energy efficiency will have a higher probability to produce at least a green product. Moreover, a penalty for breaching environmental legislation does not encourage firms to produce green products. Several policy implications have emerged on the ground of our empirical findings. First, we propose cooperation and connection between domestic firms and foreign enterprises to inspire the production of green goods and services. Second, some preferential treatments for firms that assign a manager for green development can encourage green production in Dong Nai province. Finally, Dong Nai province shall consider policies supporting firms to mobilize capital to develop technology for green production.
Keywords
Green product; Firm behavior; Logit regression; PSM method
Article Details
References
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Yasuda, T. (2005). Firm growth, size, age and behavior in Japanese manufacturing. Small Business Economics, 24(1), 1-15.
Ye, F., Zhao, X., Prahinski, C., & Li, Y. (2013). The impact of institutional pressures, top managers' posture and reverse logistics on performance—Evidence from China. International Journal of Production Economics, 143(1), 132-143.
Zhang, N., Lin, X., Yu, Y., & Yu, Y. (2020). Do green behaviors improve corporate value? An empirical study in China. Journal of Cleaner Production, 246, 119014.
Zhu, Q., & Sarkis, J. (2007). The moderating effects of institutional pressures on emergent green supply chain practices and performance. International Journal of Production Research, 45(18-19), 4333-4355.
Nosheen, M., Iqbal, J., & Abbasi, M. A. (2021). Do technological innovations promote green growth in the European Union? Environmental Science and Pollution Research, 28(17), 21717-21729.
Jun, W., Ali, W., Bhutto, M. Y., Hussain, H., & Khan, N. A. (2019). Examining the determinants of green innovation adoption in SMEs: A PLS-SEM approach. European Journal of Innovation Management.
Chen, Y. S., & Chang, C. H. (2013). The determinants of green product development performance: Green dynamic capabilities, green transformational leadership, and green creativity. Journal of Business Ethics, 116(1), 107-119
Bernauer, T., Engel, S., Kammerer, D., & Sejas Nogareda, J. (2007). Explaining green innovation: ten years after Porter's win-win proposition: how to study the effects of regulation on corporate environmental innovation?. Politische Vierteljahresschrift, 39, 323-341
Branzei, O., Ursacki-Bryant, T. J., Vertinsky, I., & Zhang, W. (2004). The formation of green strategies in Chinese firms: matching corporate environmental responses and individual principles. Strategic Management Journal, 25(11), 1075-1095.
Dai, J., Montabon, F. L., & Cantor, D. E. (2014). Linking rival and stakeholder pressure to green supply management: Mediating role of top management support. Transportation Research Part E: Logistics and Transportation Review, 71, 173-187.
Daily, B. F., & Bishop, J. W. (2003). TQM Workforce Factors And Employee Involvement: The Pivotal Role Of Teamwork. Journal of Managerial Issues, 15(4), 393-412.
Damanpour, F. (1991). Organizational Innovation: A Meta-Analysis of Effects of Determinants and Moderators. The Academy of Management Journal, 34(3), 555-590.
Dinh, L. T. B. (2021). Đồng Nai: Ngành công nghiệp hỗ trợ phát triển mạnh. Viện Nghiên Cứu Chiến Lược, Chính Sách Công Thương. https://vioit.org.vn/dong-nai--nganh-cong-nghiep-ho-tro-phat-trien-manh-4296.4050.html
Dowell, G. W. S., & Muthulingam, S. (2017). Will firms go green if it pays? The impact of disruption, cost, and external factors on the adoption of environmental initiatives. Strategic Management Journal, 38(6), 1287-1304.
Giang H. (2022, April 27). Đầu tư cho tăng trưởng xanh. Báo Đồng Nai. http://baodongnai.com.vn/tieu-diem/202204/dau-tu-cho-tang-truong-xanh-3113457/
Ge, C., Zhang, S. G., & Wang, B. (2020). Modeling the joint distribution of firm size and firm age based on grouped data. Plos one, 15(7), e0235282.
Hanim Mohamad Zailani, S., Eltayeb, T. K., Hsu, C. C., & Choon Tan, K. (2012). The impact of external institutional drivers and internal strategy on environmental performance. International Journal of Operations & Production Management, 32(6), 721-745.
Huang, H.-C., Lai, M.-C., Lin, L.-H., & Chen, C.-T. (2013). Overcoming organizational inertia to strengthen business model innovation. Journal of Organizational Change Management, 26(6), 977-1002.
Jaffe, A. B., Newell, R. G., & Stavins, R. N. (2002). Environmental Policy and Technological Change. Environmental and Resource Economics, 22(1), 41-70.
Kimberly, J. R., & Evanisko, M. J. (1981). Organizational Innovation: The Influence of Individual, Organizational, and Contextual Factors on Hospital Adoption of Technological and Administrative Innovations. The Academy of Management Journal, 24(4), 689-713.
Lewis, G. J., & Harvey, B. (2001). Perceived Environmental Uncertainty: The Extension of Miller’s Scale to the Natural Environment. Journal of Management Studies, 38(2), 201-234.
Liang, H., Saraf, N., Hu, Q., & Xue, Y. (2007). Assimilation of Enterprise Systems: The Effect of Institutional Pressures and the Mediating Role of Top Management. MIS Quarterly, 31(1), 59-87.
Lin, C. Y., & Ho, Y. H. (2010). The influences of environmental uncertainty on corporate green behavior: an empirical study with small and medium-size enterprises. Social Behavior and Personality: An international journal, 38(5), 691-696.
Lin, C.-Y., & Ho, Y.-H. (2011). Determinants of Green Practice Adoption for Logistics Companies in China. Journal of Business Ethics, 98(1), 67-83.
Perron, G. M., Côté, R. P., & Duffy, J. F. (2006). Improving environmental awareness training in business. Journal of Cleaner Production, 14(6), 551-562.
Pun, K. F., Chin, K. S., & Gill, R. (2001). Determinants of Employee Involvement Practices in Manufacturing Enterprises. Total Quality Management, 12(1), 95-109.
Sarkis, J., Gonzalez-Torre, P., & Adenso-Diaz, B. (2010). Stakeholder pressure and the adoption of environmental practices: The mediating effect of training. Journal of Operations Management, 28(2), 163-176.
Scott, W. R. (1987). The Adolescence of Institutional Theory. Administrative Science Quarterly, 32(4), 493-511.
Singh, J. V., & Lumsden, C. J. (1990). Theory and Research in Organizational Ecology. Annual Review of Sociology, 16(1), 161-195.
Sở Kế hoạch Đầu tư Đồng Nai. (2021). Vị trí địa lý và tiềm năng đầu tư của tỉnh Đồng Nai. Sở Kế Hoạch Đầu Tư Đồng Nai. http://skhdt.dongnai.gov.vn/Pages/gioithieu.aspx?CatID=24
Tang, Y., Qian, C., Chen, G., & Shen, R. (2015). How CEO hubris affects corporate social (ir)responsibility. Strategic Management Journal, 36(9), 1338-1357.
Thornton, D., Gunningham, N. A., & Kagan, R. A. (2005). General deterrence and corporate environmental behavior. Law & Policy, 27(2), 262-288.
Yasuda, T. (2005). Firm growth, size, age and behavior in Japanese manufacturing. Small Business Economics, 24(1), 1-15.
Ye, F., Zhao, X., Prahinski, C., & Li, Y. (2013). The impact of institutional pressures, top managers' posture and reverse logistics on performance—Evidence from China. International Journal of Production Economics, 143(1), 132-143.
Zhang, N., Lin, X., Yu, Y., & Yu, Y. (2020). Do green behaviors improve corporate value? An empirical study in China. Journal of Cleaner Production, 246, 119014.
Zhu, Q., & Sarkis, J. (2007). The moderating effects of institutional pressures on emergent green supply chain practices and performance. International Journal of Production Research, 45(18-19), 4333-4355.
Nosheen, M., Iqbal, J., & Abbasi, M. A. (2021). Do technological innovations promote green growth in the European Union? Environmental Science and Pollution Research, 28(17), 21717-21729.
Jun, W., Ali, W., Bhutto, M. Y., Hussain, H., & Khan, N. A. (2019). Examining the determinants of green innovation adoption in SMEs: A PLS-SEM approach. European Journal of Innovation Management.
Chen, Y. S., & Chang, C. H. (2013). The determinants of green product development performance: Green dynamic capabilities, green transformational leadership, and green creativity. Journal of Business Ethics, 116(1), 107-119
How to Cite
Nguyen, M. H., Nguyen, H. N., & Le, T. T. Q. (2022). Determinants of firm’s decision to produce green products in Dong Nai province. Journal of Finance - Marketing Research, 13(6), 1-12. https://doi.org/10.52932/jfm.vi72.302