Assessing the impacts of government environmental policies on the small and medium-sized firm's performances in Korea and China
- Authors
- Joo, Hye-Young; Min, Hokey
- Issue Date
- 24-Aug-2023
- Publisher
- Emerald Group Holdings Ltd.
- Keywords
- Cross-national differences; Government intervention; Green supply chain management; Small and medium-sized firms; Structural equation modeling
- Citation
- Benchmarking, v.30, no.7, pp 2275 - 2302
- Pages
- 28
- Journal Title
- Benchmarking
- Volume
- 30
- Number
- 7
- Start Page
- 2275
- End Page
- 2302
- URI
- https://scholarworks.bwise.kr/cau/handle/2019.sw.cau/61881
- DOI
- 10.1108/BIJ-12-2021-0754
- ISSN
- 1463-5771
1758-4094
- Abstract
- Purpose: This paper aims to examine which role governments can play in facilitating the small and medium-sized enterprises (SMEs)' environmental capabilities in a global marketplace. It also investigates whether the extent of the impact of government intervention on firm performance varies depending on country-specific policies. Design/methodology/approach: The authors develop a series of hypotheses that are predicated on the ecological modernization theory and the institutional theory. To test those hypotheses, the authors collected cross-national data reflecting both Korean and Chinese SME practices and then used the structural equation model. In addition, the authors utilized cross-validation techniques for methodological rigor. Findings: A series of hypotheses test results revealed that government intervention had a positive impact on the MNF's environmental innovation capabilities and technological innovation capabilities. In addition, the authors discovered that SMEs' reaction to government intervention had a mediating effect between government intervention and the SME's performance. This discovery verifies the ecological modernization and institutional theories. Originality/value: This is one of the few studies that conducted cross-cultural analyses of two different nations with contrasting government structures (i.e. capitalistic versus socialistic). © 2022, Emerald Publishing Limited.
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