Inderscience Publishers

The effect of environmental regulation on green technology innovation through supply chain integration

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This article examines the effect of environmental regulation on green technology innovation through the supply chain integration, using a multi-industry sample of manufacturing organisations. Building from the literature, this study establishes the research framework consisting of seven factors – environmental regulation, market opportunity, external competition pressure, resource-based supply chain integration, network embeddedness, technology-related capacity and green technology innovation. This study employs regression analysis and structural equation model to verify the eight hypotheses. Overall, the findings support all hypotheses but the last, H7; that is, network embeddedness is not directly related to green technology innovation. Although environmental regulatory influence may vary across industries, this study provides insights about the important role of supply chain as green technology providers in a regulatory process.

Keywords: environmental regulation, supply chain management, SCM, network embeddedness, sustainability, green technology innovation, supply chain integration, manufacturing supply chains, market opportunity, external competition, resource-based integration, technology capacity

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