How speculative culture shapes green innovation performance: A dual regional and institutional lens

Abstract

Background: Regional culture plays a crucial role in green innovation performance, yet its impact has not been sufficiently explored, particularly within the African context.

Aim: The study aims to assess how speculative culture within regions affects corporate green innovation performance in the context of regional cultural integration.

Setting: The research uses data from Chinese A-share listed companies from 2008 to 2020, specifically focussing on companies with various ties to Africa.

Method: This study employs an empirical research method using multiple regression analysis, moderation analyses, along with robustness checks and endogeneity tests to ensure the validity and reliability of the findings.

Results: Findings indicate that a speculative culture inhibits green innovation, a result that remains robust across various endogeneity tests. Traditional ecological culture, trust culture and cultural diversity mitigate this negative effect, while local clan culture exacerbates it. Stakeholder supervision and external regulatory pressure from the government effectively weaken the inhibitory effect of speculative culture.

Conclusion: This study highlights the significant and complex role of regional cultures in shaping green innovation outcomes, underscoring the importance of institutions to counteract adverse cultural influences.

Contribution: This research enhances the understanding of green innovation drivers by exploring the interactions between various cultural dimensions and their impact, emphasising the alignment of formal institutions to achieve sustainable green innovation. It offers several recommendations for enhancing corporate resilience and developing effective green innovation strategies.