ABSTRACT
Technological innovations have been on rise in the recent past. In the 21 st Cc, there has been a great call
towards ensuring sustainability. Therefore firms are not only directed by private benefits but have much=h to
take care of including the environment and the society at large. However, the concept and the motives that
firms should relate to achieve have remained widely under researched and thus they have been misunderstood.
The current research was thus conducted with a main aim of assessing the effect of green motives on firm’s
performance. The analysis broke green motives into three major categories including influential, moral, and
relational. Results were analyzed and presented in tables. To capture the objectives data from 164 companies
was collected and descriptive, correlations and regressions were used.
The study found that there existed a positive significant influence of all the three aspects of green motives on
firm performance. It was also revealed that radical innovation behavior has a positive influence on firm
performance. Technology capabilities was found to have significant moderating effect of the three green
motives on firm performance. In addition, entrepreneurial orientation was seen to significantly moderate radical
innovative behavior and firm performance.
The study results were seen to have an implication on the Chinese companies as well as the US companies and
more specifically in relation to technological innovation, use of green motives, and embracement of
entrepreneurial orientation.
Thus the study concluded that firm should ensure use of green motives, should embrace technological
management capabilities, and should be at par with entrepreneurial orientation. The study was however limited
in scope, due to lack of information form some companies, time, and finances. Thus recommended for further
analysis.
Key word: Green motives, technology management, entrepreneurial orientation, radical innovative behavior,
and firm performance.
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Table of Contents
ABSTRACT 2
CHAPTER ONE: INTRODUCTION 5
1.1: BACKGROUND TO THE STUDY AND SIGNIFICANCE 5
1.1.1: Background 5
1.1.2: Purpose and Significance of the Study 6
CHAPTER TWO: THEORETICAL FOUNDATIONS AND HYPOTHESIS DEVELOPMENT 7
2.1: Green Motives 7
2.2: Green Motives and Firm Performance 8
2.2.1: Instrumental Motives and Firm Performance 10
2.2.2: Relational Motives and Firm Performance 11
2.2.3: Moral Motives and Firm Performance 13
2.3: Radical Innovation Behavior as a Mediator 14
2.3.1: Green Motives and Radical Innovation Behavior 14
2.3.2: Radical Innovation Behavior and Firm Performance 15
2.4: The Moderating role of Technology Management Capability 16
2.5: Entrepreneurial Orientation as a Moderator of RIB and FP 17
4
2.7: Summary 18
CHAPTER 3: RESEARCH DESING 19
3.1: Research Design 19
3.2: Data Collection 19
3.3: Measurements 19
3.3.1: Green Motives 20
3.3.2: Firm Performance 21
3.3.3: Radical Innovation Behavior 21
3.3.4: Technology Management Capability 21
3.3.5: Entrepreneurial Orientation 22
3.4: Data Analysis 23
3.4.1: Descriptive statistics and correlations 23
3.4.2: Reliability 23
3.4.3: Validity 24
3.4.4: Common method variance 24
3.5: Results 25
3.5.1: Testing of the research hypothesis 25
3.5.2: The moderating effect of TMC on effect of GM on RIB 27
5
3.5.3: The moderating effect of EO on effect of RIB on FP 28
3.6: Summary 28
CHAPTER 4: DISCUSSIONS AND SUGGESTION FOR CHINESE AND US COMPANIES 28
4.1: Discussion 28
4.2: Suggestions for Promoting Chinese and US Firms 30
4.2.1: Promotion of green motives 30
4.2.2: promote technology capabilities 30
4.2.3: promote entrepreneurial orientation 30
4.3: practical implications 31
4.4: summary 31
CONCLUSIONS 31
REFERENCES 33
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CHAPTER ONE: INTRODUCTION
1.1: BACKGROUND TO THE STUDY AND SIGNIFICANCE
1.1.1: Background
Technological advancement has been at the heart of most organizations. Research has shown that most firms
achieve a competitive edge through use of technologies. Most importantly, technology adoption has led to
improved efficiency in most firms. Most firms in an urge to being competitive have opted to move green. This
has been necessitated by the dynamism in the external business environment (10, 20). There has also been
economic trends towards corporate social responsibility. Green motives has thus become a rising concept in the
recent past as firms try to adopt techniques that are environmentally sustainable.
Therefore, the technologies have been seen to have a positive impact on the environment. Although it has been
seen to improve sustainability, economically, most of the technologies has been seen to slow growth and
efficiency of a firm that has its major objective as profit maximization. Critics to the technologies have gained
momentum following the theory of rationality and freedom of choice. Energy sources have also been limited
and expensive which although maximizing social benefits, the private benefits have been compromised.
Contrary, going green has been seen to have far much reaching advantages. For instance, it has been seen to
link firms with its major stakeholders (5). Most of the stakeholders have also helped firms in development. In
addition, research has shown that the green motives have a long-run effect.
Green motives defined as a part of environmental corporate social responsibility, is seen as the aspect of
business that ensures firms do not only work to achieve their objectives but have a main objective as
achievement of societal benefits. There has been major pressure including; Instrumental Motives, Relational
Motives, and Moral Motives. However, the concept in relation to its application and performance has remained
widely under-discussed. Moreover, there has been scanty information with regards to green motives effect on
firm’s performance. Therefore, the current analysis will seek to fill this gap through the below stated objectives;
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The genera purpose of the study will be to assess the effect of green motives of firm’s performance and
corporate environmental social responsibility.
The specific objectives;
1. To characterize firms in US and China making use of green motives
2. To assess the effect of green motives on firm performance
3. To assess the moderating effect of technology performance on radical innovation
1.1.2: Purpose and Significance of the Study
Although going green has scanty of literature, it is important to note that it has wide thrilling benefits. Thus, the
contributions of the current survey will be enriching at different points of governance. For instance, it is worth
noting that green motives helps firms in achievement of CSR which is an important package for development
and achievement of competitive edge. Thus the results from the current analysis on how green motives have
been applied in China and US will help other firms to lead and adopt these technologies.
In addition, realization of a positive significant effect of green motives on firm’s performance will be of
importance to all stakeholders. This is starting from the firm which will yearn to adopting more practices so that
they can improve performance. In addition, investors will realize higher returns on investment through the
technologies and thus will be more engaged in their adoption. Also the government will get more revenues, and
will also be able to achieve its main goal of ensuring environmental sustainability. Consequently, they will be
able to launch campaigns all over satisfied that firms will benefits, and the whole ecosystem will be sustained.
The current study aims at filling gaps that have been realized through literature. Since the concept of green
motives have not been explored, and no research has been done on firms in China and US, the current study
will aim at looking at how different firms have made use of the green technologies. In addition, the study will
extend to assessing its effect on performance and CSR. The current research will thus act as a back-up to
existing literature, and thus build to the body of knowledge that can be used for further research.
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One of the major contribution of the current study apart from building to existing knowledge, will be leading to
a detailed overview of the effect of green motives on firm performance. Past research have concentrated on
assessing the factors influencing adoption and the intensity of adoption. They have not extended to looking at
how it affect performance and CSR which will be a major contribution of the current review. The other major
contribution will be on scope. While other major research papers have concentrated on a one point survey
which has been hard to make inference, the current study will have a wider view which will provide a better
prospect to the topic.
Finally, the current study will make a great contribution towards information technology and technology design
and development. Realization that green motives have a positive effect on performance and CSR would lead to
more innovate technologies towards green motives. This will lead to increased adoption and choices which will
be a plus for environmental sustainability. The technology companies will make use of this information to
assessing the points for development.
CHAPTER TWO: THEORETICAL FOUNDATIONS AND HYPOTHESIS DEVELOPMENT
2.1: Green Motives
Since the 19 th Cc, there has been a lot of developments in technological innovations. A lot of motives towards
adoption of technologies in production that ensure environmental sustainability has been embraced. Research
has shown, that adoption for the technologies however has remained low relative to the 9% growth stipulated. It
has been projected that by 2025, green motives would have taken over the production an energy sector.
Green motives has been seen as the recent development that need to be used by firms to achieve not only its
private benefits but also the social benefits. There has therefore, been wide acceptance, that it makes a part of
ECSR. Therefore, making it a role for all and not only the government. Looking at the externality theory as
well as polluter pay principle, a lot of firms have opted to adoption of green motives to reduce their liability.
Recent studies have attributed the adoption to increased efficiency as well as lowered costs with is the aim of
any firm yearning to make profits. The green motives gave also foster entrepreneurship and has been seen as a
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foundation towards development. Therefore, well understood, green motives would be seen as an aspect of
ECSR as well as development that will lead to improved company performance.
Over the years, there has been a lot of attempts that have been driven towards assessing the role of green
motives. In addition, there has been a lot of attempts in addressing adoption of the technologies. However, no
deep analysis has been carries out despite having information and projections on the benefits green motives
would provide.
2.2: Green Motives and Firm Performance
In order to understand Green motives, we must understand the concepts from which it came. Green motives are
an extension of the theory of Environmental Corporate Social responsibility. ECSR is derived from the concept
of Corporate Social responsibility and it is rapidly becoming one of the central themes within the concept of
CSR. Values in society and the business world have gradually changed since Friedman wrote “The Social
Responsibility of Business is to Increase its Profits” (1). Companies can no longer engage in normal business
practices with no regard for the needs of society or the demands of the environment.
Firms can no longer exist to simply return capital to its shareholders. A new generation of consumers not only
demands good products and services but also environmental sustainability. Governments worldwide are also
putting increasing regulatory pressures on companies to engage in ECSR practices. For said reasons, companies
are shifting to Green Management Practices centered on the firm’s environmental impact. Companies that
engage in ECSR seek to lessen their environmental impact by reducing waste, carbon monoxide production and
the use of non-sustainable materials. Increasing pressure from stakeholders is the main driver for engaging in
Environmental Corporate Responsibility through Green Management practices
There has been research that states that ECSR can have a negative impact on Firm Performance. Taking part in
sustainable practices can cause increasing cost to companies and therefore have a negative effect on a firm’s
competitive advantage (2). However, other research would indicate that ECSR practices can have a positive
effect on Firm Performance. When companies engage in ECSR practices, they improve relationships with their
stakeholders like 1-government agencies which can reduce the tax burden or regulatory cost, 2-employees who
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would improve morale and productivity which would cause a firm to have less labor issues, and 3-shareholders
which could encourage more investment if the firm is participating in activities that are supported (3). ECSR
activities can also have a positive effect on a firms brand image and reputation among its stakeholders (4)
(5).ECSR practices are driven by internal and external stakeholders (6) Freeman defines a stakeholder as “any
group or individual who can affect or is affected by the achievement of the organization's objectives (7). There
are many different stakeholders in a firm and therefore there are many reasons for firms to engage in
Environmental practices. These stakeholders or actors that exert influence on the direction of a Firm’s ECSR
practices can be separated into several groups, employees, consumers, management, investors, governments
and governmental organizations (8).
All of these are actors in a Firm’s decision to engage and how to engage in ECSR practices. Some Firms are
proactive in environmental practices and others are reactive to government regulations or other outside
influences. If a firm does not engage in environmental practices it will risk losing stakeholder support (9).
These different external and internal stakeholders exert differing pressures on Firms to engage in ECSR.
Whether at an individual level or organizational level, these pressures or motives have previously been placed
into three categories: Instrumental Motives, Relational Motives, and Moral Motives (10).
Instrumental Motives are centered on self-interest that arise from the need for control. Relational Motives are
centered on the interest of others and a need for belongingness. Moral Motives speak to the need for meaningful
existence and manifest themselves in the pursuit of a higher value system. This paper seeks to understand these
motives on the organizational level, what their effect is upon Firm Performance. A firm receives pressures from
insider stakeholders such as shareholders, and managers, and also receives pressure from outsider stakeholders
such as consumers. Outside shareholders exert pressure through their purchasing power (11). They can choose
to buy or not to buy products based on a Firm’s ECSR activities or lack thereof. Consumer purchasing behavior
can easily morph into larger scale social movements like boycotts with vast financial repercussions (12). If a
Firm’s ECSR practices are not seen as legitimate it can cause a negative consumer response.
Insider stakeholders such as top managers are able to have the most direct power and influence in directing a
firm to take part in ECSR practices (13). Their motives and said influence upon a firm’s performance is very
important to understand.
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2.2.1: Instrumental Motives and Firm Performance
The concept of instrumental motives on an individual level is rooted in phycology it seeks to explain the human
need for control. This control allows us to seek favorable outcomes that serve our own self-interest (14). Firm
level instrumental motives should be viewed through the shareholder view of the firm. Extent research states
that Instrumental motives on the firm level are primarily characterized by self-interest. (15,16). It has been
argued that firms will participate in ECSR activities because they are motivated to do so in order to improve
profits over time. Reinhard(17) argued that there are six conditions in which participating in CSR are feasible.
First is regulatory constraints. These are restraints imposed by governments on firms and their competitors to
carry out CSR actions. The second condition is when the action taken is not costly. Firms may willing
participate in ECSR activities if there is not cost involved. For example, the food industry donating unused food
to the homeless that would normally be thrown away. The third condition is when the ECSR action is cost
effective or when a firm’s overall business expenses are reduced by the ECSR investment. For example, Firms
may install solar panels that reduce their carbon footprint but also reduce energy cost such an action would not
only be environmentally friendly but also beneficial to the Firm. A logistics like Amazon company may decide
to swap to electric delivery trucks over gas powered trucks in order to reduce their fossil fuel consumption but
also reduce their fuel cost. A manufacturing company may look at ways to use less plastic in their product this
would reduce waste but also reduce cost. The fourth condition is when ECSR activities increase revenue. For
example, green products often have higher profit margins than their traditional counterparts. Also, ECSR
activities can improve a Firm’s reputation thereby increasing sales. The fifth condition is when going beyond
compliance to current government regulation allows them to influence or deflect future regulation. The sixth
condition is when a Firm is over compliant in order to encourage future regulation giving them a competitive
advantage over less adaptable weaker firms. All of these conditions allow a firm to engage in ECSR activities
because they are line with their instrumental motives to return value to their shareholders. Aguilera(18) argues
that whether firms are motivated by short term shareholder interest or profit or long term shareholder interest or
sustainable profit it all qualifies as Instrumental motives. Much research exists that states that because
instrumental motives are generally the most common, firms should only seek to engage in ECSR practices that
are beneficial to firm performance. It has been argued that the only economically sustainable ECSR is viable
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because it yields more returns to shareholders which is in line with the shareholder view of the firm (19). Based
on the theories previously mentioned this study proposes that Instrumental Motives are positively related to
Firm Performance
Hypothesis 1: Green Motives are positively related to Firm Performance.
H1a: Instrumental Motives are positively related to Firm Performance.
2.2.2: Relational Motives and Firm Performance
Relational motives on an individual level have to do with a sense of belongingness (20). Individuals find their
self-worth in their relationship with others. On a Firm level relational motives should be viewed from the
perspective of the stakeholder view of the Firm (21,22,23). In this view the firm is not only concerned with the
shareholders interest, but also the interest and wellbeing of the stakeholders that have a relationship with the
firm. Relational motives are primarily concerned with how the firm is viewed or the Legitimacy of the Firm.
Social Legitimation is a relational motive because it has to do with how stakeholders view a firm’s behavior
(24). When a firm’s stakeholders participate in ECSR activities they will often demand that the firm is involved
as well. In order to maintain social legitimacy a firm will often have to engage in ECSR actions. Firms have to
maintain stakeholder norms within their industry to maintain legitimacy (25). Relational motives are very
different than instrumental motives in that firms that have relational motives are not motivated by self-interest
but in the good of all those in a relationship with the firm. Firms that have relational motives will participate in
green activities in order to satisfy stakeholders demand or expectation that they do so. There are both internal
and external stakeholders. Internal stakeholders like managers and employees can exert pressure internally on a
firm to engage in ECSR. Employees are often very involved in exerting pressure on their firm to be proactive
in environmental activities (26). Management can also be very active in promoting ECSR within a Firm.
Managers that are committed to ECSR will have a profound effect on a firm’s environmental direction (27).
External stakeholders like governments, NGOs, customers, competitors, and investors can exert pressure
externally to participate in ECSR. Freeman argues that external stakeholders have the ability to influence
public opinion for or against a firm’s environmental activity (28). Governments have the ability to exert
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pressure upon firms to adopt ECSR through regulatory requirements (29). If firms do not comply with
environmental regulations, they can face stiff taxes or penalties placed on them by their perspective
governments, also if Firms do not comply with government suggested regulations, they open themselves up to
lawsuits which in turn destroy social legitimacy (30). Firms also may take a proactive approach with
governments and go beyond legal requirements in order to maintain a positive relationships with political
players lessoning future regulatory impact on a firm’s performance (31). NGOs and other community
organizations can also put pressure on companies to engage in environmental activities (32). These actors can
sway public opinion for or against a Firms activities. If companies do not engage these shareholders they can
risk facing public protest or boycotts (33). As these organizations become more and more environmentally
active the pressure that firms receive also becomes more evident. Customers are also a major external
shareholder, and as customers continue to demand more environmentally friendly products and services
companies are constantly under pressure to comply (34). As customer environmental demands continue to
change firms will be pressure to meet those demands in order to keep or expand their customer base (35).
Competitors are also a source of pressure for firms. Offering sustainable products are being environmentally
active can be a source of competitive advantage (36). Meeting or exceeding the level of ECSR your competitors
are involved is a motive for environmental activities. Firms also face investor’s pressure to engage in ECSR
activities. Shareholders are also important stakeholders’ firms must place importance on the needs of its
shareholders (37). More and more investors are shunning fossil fuel companies and non-environmentally
focused firms in favor of environmentally friendly businesses. In recent days fund managers are divesting from
more traditional companies in favor of ECSR focused companies. Firms that are active in ECSR have shown
improved financial performance as they seek to maximize value in the company as well as society (38). These
win-win efforts can return value to a company’s shareholders. Based on the theories stated above this paper
proposes that relational motives have a positive effect on Firm Performance.
Hypothesis 1: Green Motives are positively related to Firm Performance.
H1b: Relational Motives are positively related to Firm Performance
2.2.3: Moral Motives and Firm Performance
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Moral motives on a personal level arise from a physiological need for meaning in life or a meaningful
existence. It manifests itself in a respect for human dignity and human worth. Moral motives do not revolve
around personal gain but what is morally or ethically right (39). People that are motivated morally or more
concerned about justice than economic advantage. Moral motives at the Firm level can be seem through the
Stewardship Theory (40). Firm Management will make decisions based on their own views of right and wrong.
They will act in a way that they feel obliged to or a duty to. Some managers will have moral motives to take
ECSR actions because they feel they have a duty to do the right thing whether or not it results in a better bottom
line for the firm (41). Moral motives are different than Instrumental motives and relational motives in that they
are not defined by any benefit to the firm itself but rather related to the values of the managers or the firm itself.
The values of these managers are often passed down to lower level employees and soon become an ethics code
that the firm abides by (42). Moral motives also differ from instrumental and relational motive in that they are
not defined by internal shareholder pressure external stakeholder pressure. It is an intrinsic motivation and is
simply rewarding internally as an individual (43). Many Firms believe they have a moral obligation to engage
in ECSR activities no matter the short or long-term economic impact (44). Based on extent research this paper
argues that moral motives on a firm level when sync with moral motives in society can and will have a positive
effect on firm performance. Modern movements like the “ethical shopping movement”(45) and the larger push
for environmental good and services will cause companies with moral motives to be rewarded for doing the
right thing. Some research would indicate that environmental actions taking by firms can be expensive and
cause a decline in short-term profits (46), however can provide a greater long term competitive advantage for
the company (47). There has been much research that indicated companies by engaging in environmental
sustainability enter in a win-win situation with their positive effect on the environment and improved profits
and competitive advantage (48,49). Morally motivated firms that participate in ECSR can attract like-minded
customers and workers, avoid negative publicity and attract more outside investment (50) for these reasons this
paper proposes that Moral motives are positively related to Firm performance.
Hypothesis 1: Green Motives are positively related to Firm Performance.
H1c: Moral Motives are positively related to Firm Performance.
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2.3: Radical Innovation Behavior as a Mediator
2.3.1: Green Motives and Radical Innovation Behavior
Green Motives as we previously defined are Firm level motivations to participate in ECSR actives. These
activities are numerous such as complying with regulation, waste and pollution reduction, the production and
consumption of renewable energy, sustainable supply management, and the development of environmentally
friendly products and services. All of these and many more activities are recognized as ways firms can
participate in ECSR. In recent years much more attention has been given to green innovation or sustainability
innovation. Sustainability innovation allows firms to stay competitive in this modern ever-changing
environment. Sustainability innovation was more widely recognized after the Brundtland report in 1987(51).
Firms were encouraged to innovate and develop environmentally friendly technologies. Sustainability
innovation was defined as “development that meets the needs of the present without compromising the ability
of future generations to meet their own needs” (52). Sustainability innovations include: process innovations
such as increasing efficiency, and lowering energy use, organizational innovations such as green management
systems, and products innovations such as products more eco-friendly materials or more sustainable
technologies. (53). However, Sustainability innovation like all other innovations can also be defined by
instrumental innovation and Radical innovation (54). Instrumental innovation and radical innovation are very
different. Instrumental innovation is development based on prior knowledge and or existing products , Radical
innovation is a totally novel product or process (55)Radical innovation is recognized as being a more effective
way to increase sustainability since it is a general departure from pre-established industry norms (56). Firm
culture is very important to Green motives and Radical innovation. If managers have green instrumental,
relational or moral motives to participate in ECSR these motives with have an effect on lower employees and
firm culture (57). If a firms management or leadership’s style is also an important factor in innovation.
Leadership can promote a culture of radical behavior which encourages employees to feel comfortable
introducing new ideas and innovation (58). There is much extent research about the relationship of organization
culture and radical innovation behavior (59,60).Radical innovation behavior is determined by the management
strategy of a firm. If a company wants to exhibit radical innovation behavior it must be organized to do so(61)
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Firms that exhibit traits such as flexibility, autonomy, risk taking, questioning established methods and
procedures, and learning from mistakes tend toward radical innovation behavior(61).Radical innovation
behavior is also characterized by three basic competencies, discovery is the process of recognizing, elaborating
and articulating radical innovation opportunities, incubation is the process of maturing previously discovered
radical innovations, and acceleration, acceleration is the process of building a business around radical
innovation(61) all three of these capabilities require proactive management and established procedures.
Radical innovation behavior is also important for the development of environmental technologies. Real
environmental sustainability can only be obtained by way of innovation. However incremental environmental
innovation in not sufficient for environmental sustainability in that is a mere improvement of old standards and
products and not the replacement of them. Mangers that possess green motives will create a firm culture that is
concerned about the environment and also a culture that exhibits radical innovation behavior in order to
produce innovations order to overcome current environmental issues.GM firm management will also have a
radical innovation strategy than strengthens RIB. Based on extent literature this paper proposes that the green
instrumental, relational and moral motives are positively related to Radical innovation behavior.
Hypothesis 2: Green Motives are positively related to Radical Innovation Behavior.
2.3.2: Radical Innovation Behavior and Firm Performance
Innovation is necessary for Firms to survive and thrive in an ever-changing business environment and society.
Radical innovations transform markets, create new markets, and stimulate economic growth (62). These
innovations can give corporations significant advantages and a powerful market position. When radical
innovations occur it totally changed the competitive environment a firm exist in. Companies that were
previously industry leaders can be totally taken over by its competitors (63). Existent products become obsolete
and a new standard is set. Radical innovations can therefore have a profound effect on the competitive
advantage a Firm has. Firms that have radical innovation breakthroughs are usually industry leaders. However,
developing Radical innovations are extremely difficult. These innovations are characterized by high risk,
complexity and uncertainty (64). Radical innovations also require large amount of time and capitol (65). There
is no certainty that this large investment will result in successful radical innovation. Research has been done to
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examine how firms should organize or mange themselves in order to be successful in radical innovation
(66,67). Innovations relationship to Firm Performance began to be explored in 1947 with Schumpeter’s (68)
theory of profit extraction which states that firms through innovation acquire a temporary monopoly and are
thus able to extract higher rents. However these higher rents can be lost by other firm’s innovations and new
products. It is then important that firms show sustained innovative behavior. Firm innovation contributes to
firm performance by giving a firm a better market position, financial position, and a higher overall firm value
(69). Firms that enact the proper managements systems that allow for or encourage radical innovation behavior
will be more successful in producing Radical innovations. Behaviors such as goal setting, focused radical
innovation investments, enacting of radical innovation projects, technology sourcing from outside the firm,
seeking to satisfy the radical innovation needs of customers, continued learning through the innovation process
and the willingness to break up established processes in order to achieve radical innovation are all linked to
successful radical innovation. (70,71,72)
Radical innovation behavior over the long term will also contribute to firm performance. In light of previous
studies this thesis proposes that Radical innovation behavior is positively related to Firm Performance.
Hypothesis 3: Radical Innovation Behavior is positively related to Firm Performance.
2.4: The Moderating role of Technology Management Capability
Technology Management has a long research history and is commonly defined as “a process, which includes
planning, directing, control and coordination of the development and implementation of technological
capabilities to shape and accomplish the strategic operational objectives of an organization” (70). Cetindamar,
Phaal, and Probert viewed Technology Management through the dynamic capability’s theory (71). In their view
TM is a capability that determines the way firms generate and uses its resources. Weiwei Wu, Yexin Liu,
Tachia Chin(72), define TMC “ a firm’s dynamic capability of planning, developing and exploiting
technological capabilities to improve firms’ competitiveness”. They also argue that TMC includes the
following capabilities: searching capability which is the location of information from within and without the
firm, selecting capability which is the ability to determine what information is valuable for strategic planning
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,implementation capability which is the implementation of an information based strategy, and learning
capability which connects all previous activities. As previously stated, GM are positively related to RIB. Firms
that are motivated to ECSR will have strong RIB .Firms that possess GM will are characterized by
environmental concern and a motivation by management to organize to meet these environmental challenges
through innovation. The relationship between GM and RIB is revolves around the Radical Innovation culture
and Radical innovation management that GM firms will possess. TMC has been shown to have a positive
relationship on New product development (73). TMC is also acquiring technology information and the proper
management of this information (74).TMC is not merely management of a R&D department but a strategic
management of innovation, knowledge and technology (75). TMC would strengthen the Radical innovation
Culture of a Firm and also Strengthen the Firms Radical Innovation management, by strengthening these
activities TMC strengthens the relationship between GM and RIB.. Firms that are able to acquire technology
information and select appropriate information and strategically implement this information for innovation will
help firms exhibit greater RIB. This Thesis proposes that TMC will strengthen the relationship between GM
and RIB.
Hypothesis 4: Technology Management Capability moderates the relationship between GM and RIB.
H4a TMC moderates the relationship between Instrumental Motives and RIB
H4b TMC moderates the relationship between Relational Motives and RIB
H4c TMC moderates the relationship between Moral Motives and RIB
2.5: Entrepreneurial Orientation as a Moderator of RIB and FP
Pearce, Fritz, and Davis define a Firms Entrepreneurial Orientation as “a set of distinct but related behaviors
that have the qualities of innovativeness, proactiveness, competitive aggressiveness, risk taking and autonomy
(76). Hughes and Morgan measure EO by risk-taking, innovativeness, proactiveness, competitiveness, and
autonomy (77). Firms with EO are defined by their willingness to take part in high risk endeavors and their
innovativeness. These qualities can strengthen a firms RIB as radical innovation is a high-risk high- reward
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activity. Firms that are Entrepreneurial are willing to take risk, they are competitive and they are innovative. All
of these are attributes that have a strong relationship with RIP and FP. Firms that are innovation and risk taking
are commonly linked with greater competitive advantage and economic performance. It can therefore be
inferred that Entrepreneurial Orientation strengthens the relationship between Radical Innovation Behavior and
Firm Performance.
Hypothesis 5: Entrepreneurial Orientation moderates the relationship between RIB and FP
2.6: Research Model and definition of Variables
2.7: Summary
From the analysis it is clear that there could be a relationship between green motives and firm performance. It is
also clear that RIB can influence performance and thus can be used as a moderator. From the analysis the
technological capacity together with green motives have an influence on radical innovation. And radical
innovation influence firm performance and as thus entrepreneurial orientation is used as a moderator.
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CHAPTER 3: RESEARCH DESING
3.1: Research Design
The study made use of quantitative research design. This is following the positivism approach that alleges for
existence of theory before research. And thus theory is used ot test hypothesis that are developed and measured.
The study was deductive in nature and thus made use of literature to develop variables that were used for
assessment. In addition, cross-sectional surveys were conducted and data gathered through use of semi-
structured questionnaires. Finally, data was collected, entered and analyzed using STATA. Data was presented
in table and figures and used for assessment of the effect of green motives on performance.
3.2: Data Collection
This study is a firm level study. A questionnaire was produced and sent to management level employees of
small medium and large businesses. Business from the United States, China, and other countries are all
represented. There were also many different industries represented. Including agriculture, oil and gas, food
production, Chemicals, automotive, healthcare, fashion, finance, construction, real estate, and technologies as
well as many others industries. Management level employees were specifically targeted as they are the ones
who have a good working knowledge of the firm they work for and also are understand the strategies and
management of said Firms. The questionnaire included 95 questions that measure the Green Motives, Radical
Innovation Behavior, Firm Performance, and Technology Management Capability and Entrepreneurial
orientation of the companies
3.3: Measurements
In the questionnaire a 1-5 Likert Scale was used with 1 being strongly disagree and 5 being strongly agree.
There were 6 sections in the questions with the First section including questions about the location of the
business, the industry where the business operates, the size of the business and the amount of years the person
has worked in that company. Section 2 where questions concerning Firm Performance. Section 3 were
questions concerning Green Motives. Section 4 were questions concerning Radical Innovation Behavior,
21
Section 5 were questions about Technology Management Capability and Section 6 were questions about
Entrepreneurial Orientation. The measurement of the variables are further defined below.
3.3.1: Green Motives
Green Motives have been separated into three distinct motivations to participate in ECSR: Instrumental
Motives, Relational Motives and Moral Motives (78).
Instrumental Motives
The measurements of Instrumental motives were comprised of 5 items: (1) We engage in sustainability
activities due to the shareholders demand for sustainability improvements, (2) We engage in sustainability
activities in order to avoid poor publicity, (3) We engage in sustainability activities in order to appease our
shareholders, (4) We engage in sustainability activities for short-term profitability, (5) We engage in
sustainability activities for long-term profitability.(79)
Relational Motives
The measurements of Instrumental motives were comprised of 4 items: (1) We engage in sustainability
activities in order to increase our customer base, (2) We engage in sustainability activities in order to
differentiate us from our competitors, (3) We engage in sustainability activities as it is a source of sustained
competitive advantage, (4) We engage in sustainability activities primarily due to sustainability regulation. (80)
Moral Motives
The measurements of Moral motives were comprised of 3 items (1) We engage in sustainability activities
because we feel a responsibility to the environment, (2) We engage in sustainability activities because of a
genuine concern for the environment, (3) We engage in sustainability activities because top management
because top management considers environmental responsiveness as a vital part of company strategy. (81)
3.3.2: Firm Performance
22
Firm Performance is a measure of the resources possessed by a company (82) as well as the relationship said
company has with its competitors. (83) The measurement of Firm Performance were comprised of 4 items: (1) Our
profitability has been substantially better ,(2) Our return on investment has been substantially better, (3) Our
market share has been substantially better, (4) Our sales growth has been substantially better. (84)
3.3.3: Radical Innovation Behavior
The measurements of Radical Innovation Behavior were comprised of 12 items: (1) Our firm sets the goal of
developing radical technological innovation (2) Our firm applies new technologies into technological
innovation , (3) Our firm aims to develop industry technology standards, (4) Our firm continuously and
intensively invest into R&D to develop new technologies/products, (5) Our firm has initiated a large number of
radical innovation projects , (6) Our firm openly shares technological knowledge across functional departments,
(7) Our firm actively acquires technology knowledge from outside sources,(8) Our firm seeks to identify
potential radical technology needs of customers(9) Our firm actively searches for cross-domain technology
information,(10) Our firm is actively learning new things during product/technology development,(11) Our
firm applies new technology standards to guide technological innovation,(12) Our firm is willing to break
established processes to meet the needs of technological innovation(85,86,87)
3.3.4: Technology Management Capability
Technology Management Capability was measures with the following 56 items: (1)Adequacy of Funding for
Technology Activities,(2) Many sources for funding technology activities,(3) Accuracy in estimating funds for
technology activities(4)Appropriate allocation of funds to technology projects (5) Effective assessment of
utilization of funds for technology activities(6) Adaptation in funding of technology to changing circumstances,
(7) Learning from other business on equipment, (8) Equipment is regulated (9) Proper maintenance of
equipment, (10) Allocating of job responsibilities depending upon types of equipment(11) management ability
to grasp the condition of equipment(12) Understanding technology talents required by business (13) making the
development strategy of technical staff(14) effective motivating of technical staff (15) effective training(16)
team building(17) communication channels (18) learning from success and failure(19) Planned gathering of
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tech-info (20) Detailed tech-info management system (21) Research on every technology(22) complete file on
technology (23) strategy depends on tech-info(24) effective tech-info transfer system(25) timeliness in gaining
benefits of technological achievement(26) management system of technological achievement(27) timely
evaluation of benefits of technological achievement (28) rapid dissemination of technological achievement
within the business(29) transfer of technology to external parties (30) Active in applying for Patents(31)
technological achievements are reliably protected(32) Corporate culture focuses on technological changes (33)
corporate culture is consistent with technological strategy (34) timely removal of barriers to an innovative
culture(35) Recognizes the role of corporate culture in fostering technology development(36) organization
adapts to demands of technology strategy (37) department exist for developing new technology development
(38) organization adapts to changes in technology (39) department collaborates in technology project (40)
Department established for external collaboration on technology(41) regularly evaluates the technological work
of each department(42) quality standards (43) information quality (44) comprehensive quality system (45)
quality cost analysis (46) integrating technology and managerial standards (47) unit for standardization of
activities(48) focus on developing technology standards (49) plan for implementing of technology
standards(50)timely updating of technology standards(51) research on technology standards(52) timely
inspection of effective implementation of standards (53) accurate assessment of technology risk (54) plan for
management of technology risk(55) different measure to cope with different technology risk(56) Evaluate the
effectiveness of risk management. (88,89,)
3.3.5: Entrepreneurial Orientation
Entrepreneurial Orientation was measured with the following 5 items (1) In our firm innovation is emphasized
above all (2) people in our firm are encouraged to experiment in this origination so as to identify more
innovative approaches or products (3) People in our firm are willing to take risk (4) Long-term potential is
valued over short-term performance in our firm(5) our firm has a higher ability to persevere in making our
vision of the business a reality. (90)
3.4: Data Analysis
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3.4.1: Descriptive statistics and correlations
The table below makes a lists of means, standard deviations and correlations. The table also presents the
Cronbach’s value. From the analysis, it is clear that green motives presented by moral, instrumental, and
relational motives have a positive correlation with firm performance, radical innovation behavior, and
technology management and entrepreneurial orientation.
Variable Mean SD. FP IM RM MM RIB TM EO Cronbach’s VIF
FP 4.1235 0.215 – 0.789 a 0.587 a 0.663 a 0.321 a 0.547 a 0.458 a 0.8687
IM 3.2518 0.326 0.569 a – 0.578 a 0.565 a 0.876 a 0.874 a 0.587 a 0.8742 2.124
RM 2.2354 1.265 0.598 a 0.621 a – 0.586 a 0.596 a 0.782 a 0.545 a 0.9871 3.125
MM 3.1582 0.315 0.746 a 0.781 a 0.589 a – 0.898 a 0.457 a 0.686 a 0.8657 2.478
RIB 3.9842 0.681 0.681 a 0.684 a 0.784 a 0.681 a – 0.568 a 0.468 a 0.9122
TM 3.1265 0.781 0.742 a 0.568 a 0.458 a 0.874 a 0.896 a – 0.5468 a 0.8924 3.214
EO 4.1268 0.218 0681 a 0.558 a 0.871 a 0.742 a 0.487 a 0.487 a – 0.8340
A= significance at 1%, b=significance at 5%
3.4.2: Reliability
A reliability test was needed before statistical hypothesis testing would be conducted. This was meant to ensure
that the questionnaire were accurate and complete. In addition, it would allow for consistency in the results that
would be generated. According to Ansari and Krop (68), reliability tests are conducted to assess whether a
variable depicts the information it should. Following the work of, a Cronbach alpha is determined as it
indicated the overall reliability and consistency in the questionnaire. According to Paulraj et.al (80), the higher
the alpha the better the reliability. The Cronbach for TP. IM, RM, MM, RIB, TM, and EO is 0.8687, 0.8742,
0.9871, 0.8657, 0.9122, 0.8924, and 0.8340 respectively. The rule has been an alpha greater than 0.7 to be
showing consistency. From the analysis, all the alphas are above the criteria an indication that the questionnaire
used is consistent and data on it can be relied on to conduct analysis. For validity, information was gathered
from managers, experts, and employees of different firms in US and China.
3.4.3: Validity
For validity assessment, factor analysis has been the most appropriate model given that the data is collected in
form of likert scale presentation. Therefore, a fitness test for factor analysis becomes important. KMO (Kaiser-
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Meyer-Olkin) test has been used to test for validity where a figure greater than 0.7 is in line with performance
and a factor analysis can possibly be conducted.
KMO (Kaiser-Meyer-Olkin) test. 0.897
Bartlett's Test of
Sphericity
Approximate, Chi-square 135.25
Significance 0.0026
From the table above the Kaiser value is 0.897 which is above the limit and thus acceptable for conducting a
factor analysis.
According to Ansari and Krop (68) explanatory factor analysis becomes one of the most common analysis
methods that are useful in assessing factors influencing performance. Using factor analysis it is possible to
assess the structuring of different variables and their odds depict their level of effect. Making use of S.P.S.S, we
were able to make rotations, and making use of principle component analysis we were able to assess for validity
and convergence. This was by assessing for significance of the hypothesized variables. PAC was the extraction
method. The loadings led to a four-factor solution which was explanatory and showed quantification of all
elements.
3.4.4: Common method variance
This was a necessary undertaking to ensure bias was eliminated in the analysis. Following the work of Paulraj
et.al (80), we followed several procedures to ensure bias was eliminated. A set of questions were well
structured at each point to ensure all was captured. Following the Harmanone-factor test as proposed by Ansari
and Krop (68) the analysis showed no single factor accounting for much of the variance and such the problem
of common method variance would not arise. To assess for validity, the correlations were compared to those of
the original model and there was no realised significant difference. The model did not change and the loading
parameters were the same. Therefore, this was an indication that CMV was not a major problem and thus would
not have any significant effect on the analysis.
3.5: Results
3.5.1: Testing of the research hypothesis
26
Use of a multiple linear regression was used to test the effect of green motives on firm performance. This
analysis was important as we can be able to attest for the direction of the effect caused. For OLS to be an
appropriate estimator that can be relied on in production of consistent estimates, diagnostic tests were
conducted including test for multicollinearity. According to Green (2010), a VIF less than 5 is acceptable and
multicollinearity is not considered a big problem. Our VIF were all less than 5 and indication that OLS would
be used to produce unbiased and consistent estimates.
Factors of regression for H1a, H1b, H1c, H2 &H3
Variable FM RIB FM RIB FM RIB FM
IM 0.871*** 0.658** – – – – –
RM – – 0.645*** 0.654*** – – –
MM – – – – 0.597*** 0.621*** –
RIB – – – – – – 0.541***
Type 0.451 0.251 0.265 0.354 0.586 0.354 0.261
Size 0.354 0.125 0.664 0.452 0.652 0.621 0.215
R2 0.458 0.581 0.621 0.615 0.681 0.552 0.426
Adj. R 0.442 0.491 0.561 0.591 0.615 0.426 0.418
ΔF 28.12 35.21 36.65 34.25 38.24 31.25 22.38
P***<0.001, p**<0.05, p*<0.1
The results displayed in the table above supports the three hypothesis. The first hypothesis we intended to
estimate existence of a positive significant influence of green motives on firm performance. The hypothesis is
satisfied since all the three motives have a significant influence on firm performance. Form the analysis they
have a positive significant influence on performance. The green motives is divided into three parts that are used
to measure its effect on firm performance including; relational, instrumental, and moral motives. Different
regression are used to assess the effect of each adding some control variables to estimate the effect on
performance. The results indicate that all the three forms of green motives have a strong positive influence on
firm performance. They are all significant at 1% which stipulates a 99% confidence level and increase
reliability of the results as the error is minimized. This is an indication that an increase in instrumental motives
increases firm performance by 87.1%. This supports hypothesis H1a which proposed that instrumental motives
have a positive influence on firm performance. In addition, an increase in relational motives increase firm
performance by 64.5%. This is significant at 1% level of significant which reduced the margin of error and
increases our confidence on the results to 99%. Hypothesis H1b purported that relational motives have positive
27
influence on firm performance. This hypothesis is qualified at 1% level of significance. The results are also in
support of hypothesis H1c which argued that moral motives have a positive influence on firm performance. The
results indicate that an increase in moral motives, increases firm performance by 59.7%. The results are
significant at 1% which reduces the margin of error. Therefore, we can confidently indicate that green motives
have a positive influence on firm performance.
The second hypothesis was testing whether green motives have a positive effect on RIB (radical innovative
behavior). Again, regression analysis were conducted on GM to RIB. GM has three distinct categories
including IM, RM, and MM. running regression analysis on the three, with control on size and industry, there
results supported the hypothesis at 1% level of significance. Hypothesis 2a indicated that there is a positive
influence of IM on RIB. The results produced a coefficient of 0.658 which was significant at 1%. This is an
indication that an increase in IM leads to an increase in RIB by 65.8%. Hypothesis H2b stipulate existence of
positive influence of RM on RIB. The results proved the hypothesis at 1% level of significance. The value was
0.654 which was significant at 1%. This was an indication that an increase in RM leads to an increase of RIB
by 65.4%. Hypothesis 2c indicated existence of a positive influence due MM on RIB. The coefficient was
0.621. This was significant at 1% level which reduced the margin of error. The results indicated that if MM was
increased then RIB would increase by 62.1%.
Hypothesis three was set to test existence of positive influence by RIB on FM. The results showed that RIB has
a positive significant influence on FM. At 1% level of significance, the coefficient was 0.541. This was an
indication that increase in RIB increased FM by 54.1%. This was in support of our hypothesis which stated that
RIB has a positive influence on FM.
From the analysis, firm and type were chosen as control variable to the model and they were not significant an
indication that they do not have a significant influence on firm performance nor do they influence radical
innovation.
3.5.2: The moderating effect of TMC on effect of GM on RIB
Technology directed that Management Capability moderates the relationship between GM and RIB. GM has
three stages including IM, RM, and MM. the table below shows the effect relationships.
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Hypothesis 3a indicates that there is a moderating effect of TM on IM and RIB. The results of the regression
model showed a significant moderating effect. They was indicated by a TM coefficient of 0.715, IM coefficient
of 0.854, and TM*IM coefficient of 0.459. They were all significant at 1% which was an indication of a
moderating effect of TM on IM and RIB which them satisfy hypothesis 3a.
Variable RIB IM RIB RM RIB MM FP RIB
TM 0.715*** 0.651*** 0.659*** –
IM 0.854** – – –
RM – 0.568*** – –
MM – – 0.542*** –
EO – – – 0.654***
RIB 0.568***
TM*IM 0.459*** – – –
TM*RM – 0.548*** – –
TM*MM – – 0.458*** –
EO*RIB 0.582***
Type 0.215 0.512 0.365 0.265
Size 0.351 0.564 0.421 0.365
R2 31.61 38.58 36.54 34.65
Adj. R 30.21 36.54 34.58 31.62
ΔF 25.81 30.62 35.86 31.36
Hypothesis 4b stipulated for existence of a moderating effect of TM on RM and RIB. The coefficient were
0.651 for TM, 0.568 fir RM, and 0.548 for TM*RM. They were all significant at 1% an indication that
hypothesis 3b has been satisfied and thus there exist a moderating effect.
Hypothesis 4c indicate existence of a moderating effect by TM on MM and RIB. The coefficients were 0.659
for TM, 0542 for MM, and 0.458 for TM*MM. they were all significant at 1% which was an indication that
there was moderating effect and thus our hypothesis was satisfied.
3.5.3: The moderating effect of EO on effect of RIB on FP
Hypothesis 5 stipulates that there exist a moderating effect of OE on RIB and FP. The coefficient were EO=
0.654, RIB=0.658, and EO*RIB= 0.582 as shown in the table above. They were all significant at 1% which was
an indication that hypothesis 5 is satisfied and entrepreneurial orientation has a moderating effect on radical
innovation and firm performance.
3.6: Summary
29
Data was collected from 164 companies within China and US. The respondent were from different sectors
including; automotive, E- commerce, IT, retailing, education, fashion, health care, service, food, and financial
institutions among others. There was use of descriptive statistics, use of correlations, and regression to test the 5
stipulated hypothesis that were intended to assert existence on an influence and moderating effects. The tables
generated and presented in the reports supported all the stated hypothesis and the margin of error was minimal
which gave increased confidence on the results. The hypothesis was testing effect on GM on FM, and the
moderating effect of TM and EO on RIM and FM respectively. GM was realized to have positive influence on
firm performance. In addition, it was realized that TM has a moderating effect on RIB, and EO has a
moderating effect on RIB and FP. Therefore, the results indicated that there existed relationships that were
strong and meaningful.
CHAPTER 4: DISCUSSIONS AND SUGGESTION FOR CHINESE AND US COMPANIES
4.1: Discussion
The study provide a conceptual layout of the relationship between green motives and firm performance. Based
on the results form 164 firms, the results documented main findings include; the green motives positively
influence firm performance. Second, radical innovative behavior has a positive influence on firm performance.
Third, technology management capabilities moderates radical behavior at the three types of green motives.
Finally, entrepreneurial orientation moderates radical innovative behavior and firm performance.
Green motives have a significant influence on firm performance. The results have been supported by the work
of Paulraj et.al (80), who reported that green motives influence firm performance through technology
development and innovations. It has been stipulated that firms should years to embrace different forms of green
motives and as much as possible to improve their capability and competitive advantage. According to the
finding green motives carrying the different forms are important for companies in US and China. Research has
shown, that use of green motive lead to increased firm performance. Therefore, at this point were are interested
with developments that lead to environmental sustainability and engagements that are acceptable at the societal
level. Therefore, making use of green motives, firms can be able to exploit opportunities and niche markets that
would give them a competitive advantage and help them deal with the stiff competition.
30
The information from green motives especially relational and moral are an indication of how firms should
ensure a positive organizational culture which will have an effect on both internal and external environments. It
is also important in depicting consumer’s behavior, as well as taste and preferences which depict the target
market needs.
According to Paulraj et.al (80), a positive relation on firm’s performance due to green motives is an indication
of strategic positioning. Firm’s performance is measured through the key performance indicators stipulate by
how well they are bale to address issues concerning their stakeholders. Previous research has dictated that going
green to ensure sustainability doe not only benefit the community but has a long-run spilling effect on the firm.
The findings show, that radical innovative behavior does not only rely on green motives but also rely on
technological capabilities. Backer (31), hypothesized that technological innovations influence firma
performance as it increases efficiency. Tyler (14), similarly reported that technological adoption gives firms an
upper competitive hand. Our current findings thus in line with the previous research helps firms in evaluation of
opportunities and investments that would lead to increased efficiency.
Technology capabilities is not the only moderator of performance, but entrepreneurial orientation also
moderated performance. According to Siegel (19), entrepreneurial orientation defines entry into a market and
strategies for development and thus has a great effect on the kind of technologies a firm is willing to adopt and
firm performance. Therefore our current results indicates that firms need be entrepreneurial so that they can
thrive in the dynamic world that is filled with a lot of uncertainties.
4.2: Suggestions for Promoting Chinese and US Firms
4.2.1: Promotion of green motives
Firms should go out to embracing as many aspect of the three types of green motives so that they can improve
their firm performance. According to Siegel (19), firm performance requires taking care of both the internal and
external business environment. Kostoff (74), showed that stakeholder relationships improves the corporate
image of a firm, its loyalty, ad brand image. Consequently, influencing its performance. In addition, it is easy to
build a wall that would be sustainable both economically, socially, and environmentally, which will make it
possible for a firm to move towards its strategic objectives at a cheaper cost.
31
4.2.2: promote technology capabilities
Technology management forms a crucial part of innovation and product development. Kostoff (74), stipulated
that use of technological innovations improves efficiency and low cost production. It is thus useful to adopt
technologies that are sustainable and to cultivate on technological innovations capabilities which would have a
consequent effect on adoption and firm performance. According to Massa (56) capability development reduces
change resistance form those engaged with the technology and thus they are able to transit accordingly which
leads to smooth developments.
4.2.3: promote entrepreneurial orientation
According to Massa (56), businesses should be set out to achieve and grow. Taking risk and being innovative
are core aspect of entrepreneurship. It has been reported that skills are an important aspect of development and
creativity. Thus a realization that it influences innovation and performance is a useful tool to development. It
should thus be encourages as it lead to better performance as well as thriving in the world of uncertainty and
stiff competition.
4.3: practical implications
The current research provides practical recommendation to Chinese and US companies. For instance form the
analysis it is clear that firms should ensure they integrate their systems and take up as much form the three
green motive perspectives to ensure firm performance is maintained. This will also be a move towards
achievement of CSR which has become a core part of business performance.
Second, firms can become innovative and adopt technologies by ensuring a first stage of improved
technological capabilities. This is by training and innovations which would help in improving performance as
well as reducing cost of production through technologies that are environmentally sustainable. Consequently,
they are bale to reduce their cost of pollution, and they are in line with law thus making them a sustainable
business.
32
Since the current analysis considers the application of technology and entrepreneurial orientation on adoptive
behavior and firm performance, it is thus important to indicate that firms need to encompass different
capabilities and will as entrepreneurial skills which will be important in fueling performance.
4.4: summary
It has been realized that green motives, technology management and entrepreneurial orientation are important
aspect of firm performance and technology development. This has application to firms in China and US and
could be used to foster sustainability both economically, socially, and environmentally.
CONCLUSIONS
Form the analysis it can be concluded that green motives has three major aspect including relational,
instrumental, and moral motives. The three aspect are all important to fueling firm performance. Their
influence is positive and thus should also be managed to ensure firms are able to thrive. The analysis made use
of 164 companies for the analysis. Made use of descriptive, correlations, and regressions to assess the effects.
Green motives were positively related, there has a positive relation of radical innovation of firm performance,
and technology management capabilities as well as entrepreneurial orientation moderated firm performance.
Therefore, major conclusions include; green motives have an influence on firm performance. This was
indicated by the positive significant results. In the analysis, it was indicative that the three forms influence
performance and thus they are all needed in fueling growth. With respect to sustainability, they lead to positive
environmental benefits and overall ecosystem sustainability.
Second, the other key finding lied on the positive effect of radical innovation on firm performance. The study
results documented a positive significant relationship. This is an indication that firms do not only need to go
green but also need technological assistance which fuel sustainability. This would lead to reduced pollution and
consequently, ecosystems sustainability.
Third, the study found that technology management capabilities moderate radical innovation. As thus it is
important to note that adoption id fuels form different aspect and firms need to empower their employees as
33
well as develop systems that would help in reduction of resistance to change and thus have a smooth transition
that would lead to developments.
Finally, firm managers need to derive firms making use of entrepreneurial innovation and developments as they
facilitate adoption and firm performance. Thus to thrive in the complex and dynamic ecosystems, it is important
that firm have skill and capabilities that would help them.
However, the study was posed by a few limitation. One the study sample was small given the scope and thus it
recommend for further research that would use the same methodological approach and increase sample to
reduce sampling bias. In addition, it was difficult to get data from some companies as it was regarded
confidential, thus the study due to limitation of time and finances was not able to engage with most firms which
would have compromised reliability of results provided.
34
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