Does Environmental Regulation Affect Green Organisational Innovation? Managerial Environmental Concern as a Moderator of Firm Performance in Jordan’s Agri-Food Industrial Sector
DOI:
https://doi.org/10.22452/JIE.vol18no3.3Keywords:
Environmental regulation, Financial performance, Environmental performance, Green organisational innovation, Managerial environmental concernAbstract
The growing challenges of climate change and pollution have intensified the
demand for sustainable business strategies. This study examines how environmental
regulations (REG) influence the implementation of green organisational innovation
(GOI) in Jordan’s agri-food industrial sector. Additionally, it investigates whether GOI
positively impacts firm environmental and financial performance (FEP and FFP) and
explores how managerial environmental concern (MEC) moderates this relationship.
This study adopts a cross-sectional design method by using stratified sampling to collect
data from MSMEs operating in Jordan’s agri-food industrial sector. Data analysis was
performed using partial least squares structural equation modelling (PLS-SEM) based
on 250 completed responses. The results reveal that REG significantly drives GOI, which
subsequently enhances both FEP and FFP. However, MEC negatively moderates the
GOI-performance relationship, suggesting an excessive focus on MEC may reduce the
effectiveness of GOI. The study also highlights the dual role of MEC and its impact on
GOI and firm performance. This study advances GOI research in developing economies
by integrating ecological modernisation theory (EMT), the Porter hypothesis, and natural
resource-based view (NRBV). It advises firms to balance regulatory compliance with flexibility and policymakers to establish adaptive frameworks that promote GOI. Focusing
on Jordan’s agri-food sector, it offers insights for sustainability and competitiveness.
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