The Influence of Environmental Management Practices and Supply Chain Integration on Technological Innovation Performance

Abstract

The increasing demands for sustainability and enacting environmental regulations have made companies increasingly employing environmental management practices (EMPs) together with supply chain integration (SCI) to increasingly support technological innovation performance (TIP). This conceptual paper proposes a framework for the analysis of the direct effects of EMPs on TIP, which include mediating and moderating effects via SCI. In particular, based on RBV, NRBV, Dynamic Capabilities, and Knowledge-Based Views, the model states that EMPs create avenues for innovations based on resource efficiency and sustainable capability development, while SCI can further assist by facilitating knowledge transfer and collaboration among all internal functions and external partners. Three propositions are developed: (1) EMPs positively influence TIP; (2) SCI mediates the influence of EMPs on TIP by providing a channel for environmental knowledge; and (3) SCI moderates the EMP-TIP relationship such that higher levels of integration enhance the effect. This framework contributes to the theoretical advancement by integrating SCI as a key dynamic capability in NRBV and providing a holistic view of the sustainable innovation problem. In terms of practical implications, this calls for integrating EMPs with high levels of SCI for better innovation outcomes. Future empirical research should seek to test the propositions via SEM in manufacturing contexts by explicitly positioning supply chain integration as both a mediating and moderating mechanism, this study responds to calls for multi-theoretical explanations of sustainable technological innovation..