A Study On The Mechanism Of Environmental Orientation On Firm Performance

Under the pressure of increasing consumer awareness of environmental protection and increasingly stringent environmental regulations,firms have realized that they have to reflect deeply on their own economic activities,carry out economic activities with environment oriented,and reorient their future development direction.The company oriented by the environment usually prioritizes the environment in the day-to-day activities and in determining the direction of development,which helps to alleviate the environmental pressure exerted by external stakeholders and has a significant impact on firm performance.Environmental orientation has been the focal point of scholarly research,but there is no conclusive and consistent conclusion on whether and how environmental orientation will be transformed into firm performance.This study tries to dig the correlation between environmental orientation and firm performance based on the natural resource-based view and contingency theory.Specifically,this study creates a theoretical model of whether and how environmental orientation affects firm performance by selecting green innovation as a mediating variable and electing technological turbulence and internal environmental orientation as moderating variables.Overall number of 264 effective data were obtained by means of a large sample questionnaire,and multiple linear regression analysis was employed to realize empirical tests.The findings of this study show that the internal environmental orientation and external environmental orientation not only directly improves the finance and environment performance of the firm,but also indirectly improves the finance and environment performance through the mediating variable of green process innovation;Green product innovation does not significantly contribute to improving the finance and environment performance of firms,but it is more important for firms to improve environment performance when they are in an environment with a high level of technological turbulence;Green process innovation significantly increases the finance and environment performance of firms,and improving finance performance is more significant in an environment of rapid technological turbulence.This study complements existing research on environmental orientation and green innovation,at the same time provides information on how environmental orientation improve effectively firm performance,with theoretical and practical implications.