TY - JOUR

T1 - Environmental Regulatory Influence and Product Innovation

T2 - The Contingency Effects of Organizational Characteristics

AU - McKinley, William

AU - Sancheza, Carol M.

PY - 1998/9

Y1 - 1998/9

N2 - This paper examines the relationship between environmental regulatory influence and product innovation in a multi-industry sample of manufacturing organizations. Our theory argues that the influence of environmental regulation on the level of product innovation in a manufacturing organization is at least partially contingent on the organization's internal characteristics—in particular, its structural flexibility and production process flexibility. Hypotheses are derived from our theory and tested, and the results are consistent with the conclusion that structural flexibility and production process flexibility moderate the environmental regulatory influence–product innovation relationship. Whether environmental regulation inhibits or promotes product innovation seems to depend at least in part on certain internal features of an organization. We discuss implications of our results for future organization studies research on environmental regulation, and for research on other types of external constraints on organizational performance.

AB - This paper examines the relationship between environmental regulatory influence and product innovation in a multi-industry sample of manufacturing organizations. Our theory argues that the influence of environmental regulation on the level of product innovation in a manufacturing organization is at least partially contingent on the organization's internal characteristics—in particular, its structural flexibility and production process flexibility. Hypotheses are derived from our theory and tested, and the results are consistent with the conclusion that structural flexibility and production process flexibility moderate the environmental regulatory influence–product innovation relationship. Whether environmental regulation inhibits or promotes product innovation seems to depend at least in part on certain internal features of an organization. We discuss implications of our results for future organization studies research on environmental regulation, and for research on other types of external constraints on organizational performance.

KW - Sustainability sciences, Management & Economics

KW - Environmental Regulation

KW - Product Innovation

KW - Flexibility

KW - Moderated regression

UR - http://www.scopus.com/inward/record.url?scp=0032157946&partnerID=8YFLogxK

U2 - 10.1016/S0923-4748(98)00017-4

DO - 10.1016/S0923-4748(98)00017-4

M3 - Journal articles

VL - 15

SP - 257

EP - 278

JO - Journal of Engineering and Technology Management

JF - Journal of Engineering and Technology Management

SN - 0923-4748

IS - 4

ER -