Open Access Journal Article

The Impact of Strategic Alliances on Corporate Green Innovation: Evidence from China

by Yanming Chen a ,  Kaiwen Peng b,*  and  Kangjie Zhao b
a
College of Finance and Statistics of Hunan University, Changsha, China
b
Institute of Resource-based Economy Transformation Development, Shanxi University of Finance and Economics, Taiyuan, China
*
Author to whom correspondence should be addressed.
REA  2024 3(4):41; https://doi.org/10.58567/rea03040004
Received: 20 November 2024 / Accepted: 28 December 2024 / Published Online: 21 January 2025
View Full-Text
Download PDF

Abstract

We investigate the impact of strategic alliances on corporate green innovation by collecting and collating announcements of Chinese A-share listed enterprises related to their participation in strategic alliances from 2007 to 2022, and yields three main findings: Strategic alliances significantly improve corporate green innovation, and it contributes more to symbolic green innovation than to substantive green innovation, using the proportion of other enterprises in the same industry and same province that participated in strategic alliances in the previous year as an instrumental variable, we find that this positive impact is likely to be causal. Mechanism analysis indicates that public attention and productivity play an important moderating role in this process. The research results also show that the impact of strategic alliances on corporate green innovation is heterogeneous in terms of industry competitiveness, enterprise categories and strategic alliances types. Our research sheds mechanisms of strategic alliances on corporate green innovation, and provides a theoretical reference for enterprises to improve their green innovation level and enhance their core competitiveness.

Keywords: Strategic alliances; Green innovation; Public attention; Total factor productivity;
Copyright: © 2025 by Chen, Peng and Zhao. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

Funding

National Social Science Foundation of China (18BJL081) , Shanxi Philosophy and Social Science Foundation Special Projects (2022YD106)

Share and Cite

ACS Style
Chen, Y.; Peng, K.; Zhao, K. The Impact of Strategic Alliances on Corporate Green Innovation: Evidence from China. Review of Economic Assessment, 2024, 3, 41. https://doi.org/10.58567/rea03040004
AMA Style
Chen Y, Peng K, Zhao K. The Impact of Strategic Alliances on Corporate Green Innovation: Evidence from China. Review of Economic Assessment; 2024, 3(4):41. https://doi.org/10.58567/rea03040004
Chicago/Turabian Style
Chen, Yanming; Peng, Kaiwen; Zhao, Kangjie 2024. "The Impact of Strategic Alliances on Corporate Green Innovation: Evidence from China" Review of Economic Assessment 3, no.4:41. https://doi.org/10.58567/rea03040004
APA style
Chen, Y., Peng, K., & Zhao, K. (2024). The Impact of Strategic Alliances on Corporate Green Innovation: Evidence from China. Review of Economic Assessment, 3(4), 41. https://doi.org/10.58567/rea03040004

Article Metrics

Article Access Statistics

References

  1. Abramova, I., Core, J. E., and Sutherland, A. (2020). Institutional investor attention and firm disclosure. The Accounting Review, 95(6), 1-21. https://doi.org/10.2308/tar-2018-0494
  2. Acharya, V., and Xu, Z. (2017). Financial dependence and innovation: The case of public versus private firms. Journal of Financial Economics, 124(2), 223-243. https://doi.org/10.1016/j.jfineco.2016.02.010
  3. Bai, X., Coelho, A., and Lopes Cancela, B. (2024). The relationship between green supply chain and green innovation based on the push of green strategic alliances. Corporate Social Responsibility and Environmental Management, 31(2), 1026-1041. https://doi.org/10.1002/csr.2619
  4. Bellini, E., Piroli, G., and Pennacchio, L. (2019). Collaborative know-how and trust in university–industry collaborations: Empirical evidence from ICT firms. The Journal of Technology Transfer, 44(6), 1939-1963. https://doi.org/10.1007/s10961-018-9655-7
  5. Bushee, B. J., Core, J. E., Guay, W., and Hamm, S. J. (2010). The role of the business press as an information intermediary. Journal of Accounting Research, 48(1), 1-19. https://doi.org/10.1111/j.1475-679X.2009.00357.x
  6. Cabral, L., and Pacheco-de-Almeida, G. (2019). Alliance formation and firm value. Management Science 65(2), 879-895. https://doi.org/10.1287/mnsc.2017.2954
  7. Cacciolatti, L., Rosli, A., Ruiz-Alba, J. L., and Chang, J. (2020). Strategic alliances and firm performance in startups with a social mission. Journal of Business Research, 106, 106-117. https://doi.org/10.1016/j.jbusres.2019.08.047
  8. Cai, X., Zhu, B., Zhang, H., Li, L., and Xie, M. (2020). Can direct environmental regulation promote green technology innovation in heavily polluting industries? Evidence from Chinese listed companies. Science of the Total Environment, 746, 140810. https://doi.org/10.1016/j.scitotenv.2020.140810
  9. Caner, T., and Tyler, B. B. (2015). The effects of knowledge depth and scope on the relationship between R & D alliances and new product development. Journal of Product Innovation Management, 32(5), 808-824. https://doi.org/10.1111/jpim.12224
  10. Chemmanur, T. J., Shen, Y., and Xie, J. (2023). Innovation beyond firm boundaries: Strategic alliances and corporate innovation. Journal of Corporate Finance, 80, 102418. https://doi.org/10.1016/j.jcorpfin.2023.102418
  11. Chou, T. K., Ou, C. S., and Tsai, S. H. (2014). Value of strategic alliances: Evidence from the bond market. Journal of banking & finance, 42, 42-59. https://doi.org/10.1016/j.jbankfin.2014.01.033
  12. Das, S., Guo, R. J., and Zhang, H. (2006). Analysts' selective coverage and subsequent performance of newly public firms. The Journal of Finance, 61(3), 1159-1185. https://doi.org/10.1111/j.1540-6261.2006.00869.x
  13. Das, T. K., and Teng, B. S. (2000). A resource-based theory of strategic alliances. Journal of Management, 26(1), 31-61. https://doi.org/10.1016/S0149-2063(99)00037-9
  14. Demirkan, S., and Demirkan, I. (2014). Implications of strategic alliances for earnings quality and capital market investors. Journal of Business Research, 67(9), 1806-1816. https://doi.org/10.1016/j.jbusres.2013.12.009
  15. Galinato, G. I., and Chouinard, H. H. (2018). Strategic interaction and institutional quality determinants of environmental regulations. Resource and Energy Economics, 53, 114-132. https://doi.org/10.1016/j.reseneeco.2018.04.001
  16. Guariglia, A., and Liu, P. (2014). To what extent do financing constraints affect Chinese firms' innovation activities?. International Review of Financial Analysis, 36, 223-240. https://doi.org/10.1016/j.irfa.2014.01.005
  17. Gulati, R. (1995). Does familiarity breed trust? The implications of repeated ties for contractual choice in alliances. Academy of Management Journal, 38(1), 85-112. https://doi.org/10.5465/256729
  18. Gulati, R. (1998). Alliances and networks. Strategic Management Journal, 19(4), 293-317. https://doi.org/10.1002/(SICI)1097-0266(199804)19:4<293::AID-SMJ982>3.0.CO;2-M
  19. Hao, J. (2023). Retail investor attention and corporate innovation in the big data era. International Review of Financial Analysis, 86, 102486. https://doi.org/10.1016/j.irfa.2023.102486
  20. Huang, J., and Ma, L. (2024). Substantive green innovation or symbolic green innovation: The impact of fintech on corporate green innovation. Finance Research Letters, 63, 105265. https://doi.org/10.1016/j.frl.2024.105265
  21. Jiang, X., Bao, Y., Xie, Y., and Gao, S. (2016). Partner trustworthiness, knowledge flow in strategic alliances, and firm competitiveness: A contingency perspective. Journal of Business Research, 69(2), 804-814. https://doi.org/10.1016/j.jbusres.2015.07.009
  22. Jiang, X., Yang, Y., Pei, Y. L., and Wang, G. (2016). Entrepreneurial orientation, strategic alliances, and firm performance: Inside the black box. Long Range Planning, 49(1), 103-116. https://doi.org/10.1016/j.lrp.2014.09.003
  23. Ko, W. L., Kim, S. Y., Lee, J. H., and Song, T. H. (2020). The effects of strategic alliance emphasis and marketing efficiency on firm value under different technological environments. Journal of Business Research, 120, 453-461. https://doi.org/10.1016/j.jbusres.2020.02.019
  24. Levinsohn, J., and Petrin, A. (2003). Estimating production functions using inputs to control for unobservables. The review of economic studies, 70(2), 317-341. https://doi.org/10.1111/1467-937X.00246
  25. Li, M., and Gao, X. (2022). Implementation of enterprises’ green technology innovation under market-based environmental regulation: An evolutionary game approach. Journal of Environmental Management, 308, 114570. https://doi.org/10.1016/j.jenvman.2022.114570
  26. Liao, X. (2018). Public appeal, environmental regulation and green investment: Evidence from China. Energy Policy, 119, 554-562. https://doi.org/10.1016/j.enpol.2018.05.020
  27. Liao, Z., Chen, J., Weng, C., and Zhu, C. (2023). The effects of external supervision on firm-level environmental innovation in China: are they substantive or strategic?. Economic Analysis and Policy, 80, 267-277. https://doi.org/10.1016/j.eap.2023.08.016
  28. Luo, K., and Zor, S. (2024). Angel or devil? a study of the threshold effect of patent strategy on the relationship between patent thicket and corporate market value. Technology Analysis & Strategic Management, 36(11), 3460-3476. https://doi.org/10.1080/09537325.2023.2209220
  29. Malik, T. H., and Yazar, O. H. (2016). The negotiator’s power as enabler and cultural distance as inhibitor in the international alliance formation. International Business Review, 25(5), 1043-1052. https://doi.org/10.1016/j.ibusrev.2016.01.005
  30. Matvos, G., and Seru, A. (2014). Resource allocation within firms and financial market dislocation: Evidence from diversified conglomerates. The Review of Financial Studies, 27(4), 1143-1189. https://doi.org/10.1093/rfs/hhu005
  31. Mikami, K., and Bird, A. (2022). Opportunism and trust in cross-national lateral collaboration: the Renault-Nissan Alliance and a theory of equity-trust. Journal of World Business, 57(3), 101286. https://doi.org/10.1016/j.jwb.2021.101286
  32. Miller, G. S. (2006). The press as a watchdog for accounting fraud. Journal of Accounting Research, 44(5), 1001-1033. https://doi.org/10.1111/j.1475-679X.2006.00224.x
  33. Niesten, E., and Jolink, A. (2018). Alliance governance choices: Disentangling the effects of uncertainty and alliance experience. Long Range Planning, 51(2), 320-333. https://doi.org/10.1016/j.lrp.2017.07.004
  34. Olley, G. S., and Pakes, A. (1996). The Dynamics of Productivity in the Telecommunications Equipment Industry. Econometrica, 64(6), 1263–1297. https://doi.org/10.2307/2171831
  35. Roychowdhury S. (2006). Earnings management through real activities manipulation. Journal of Accounting and Economics, 42(3), 335-370. https://doi.org/10.1016/j.jacceco.2006.01.002
  36. Schildt, H., Keil, T., and Maula, M. (2012). The temporal effects of relative and firm‐level absorptive capacity on interorganizational learning. Strategic Management Journal, 33(10), 1154-1173. https://doi.org/10.1002/smj.1963
  37. Srinidhi, B. I. N., Gul, F. A., and Tsui, J. (2011). Female directors and earnings quality. Contemporary Accounting Research, 28(5), 1610-1644. https://doi.org/10.1111/j.1911-3846.2011.01071.x
  38. Sunder, J., Sunder, S. V., and Zhang, J. (2017). Pilot CEOs and corporate innovation. Journal of Financial Economics, 123(1), 209-224. https://doi.org/10.1016/j.jfineco.2016.11.002
  39. Tan, W., Li, X., Zhao, J., Cao, L., and Wang, H. (2023). Internal capital markets and employee wage: Evidence from China. International Review of Financial Analysis, 88, 102680. https://doi.org/10.1016/j.irfa.2023.102680
  40. Testa, F., Iraldo, F., and Frey, M. (2011). The effect of environmental regulation on firms’ competitive performance: The case of the building & construction sector in some EU regions. Journal of environmental management, 92(9), 2136-2144. https://doi.org/10.1016/j.jenvman.2011.03.039
  41. Wang, L., Wang, Y., and Zhou, J. (2022). Political connection, government R&D subsidies and innovation efficiency: Evidence from China. Finance Research Letters, 48, 102953. https://doi.org/10.1016/j.frl.2022.102953
  42. Wang, Z., and Tang, P. (2024). Substantive digital innovation or symbolic digital innovation: Which type of digital innovation is more conducive to corporate ESG performance?. International Review of Economics & Finance, 93, 1212-1228. https://doi.org/10.1016/j.iref.2024.05.023
  43. Wassmer, U. (2010). Alliance portfolios: A review and research agenda. Journal of management, 36(1), 141-171. https://doi.org/10.1177/0149206308328484
  44. Windsperger, J., Hendrikse, G. W., Cliquet, G., and Ehrmann, T. (2018). Governance and strategy of entrepreneurial networks: an introduction. Small Business Economics, 50, 671-676. https://doi.org/10.1007/s11187-017-9888-0
  45. Xu, Z. (2020). Economic policy uncertainty, cost of capital, and corporate innovation. Journal of Banking & Finance, 111, 105698. https://doi.org/10.1016/j.jbankfin.2019.105698
  46. Yasmeen, H., Tan, Q., Zameer, H., Tan, J., and Nawaz, K. (2020). Exploring the impact of technological innovation, environmental regulations and urbanization on ecological efficiency of China in the context of COP21. Journal of Environmental Management, 274, 111210. https://doi.org/10.1016/j.jenvman.2020.111210
  47. Zhang, Z., Luo, X., Du, J., and Xu, B. (2024). Substantive or strategic: Government R&D subsidies and green innovation. Finance Research Letters, 67, 105796. https://doi.org/10.1016/j.frl.2024.105796
  48. Zhao, R., and Ren, Z. (2023). Does Digital Economy Promote Enterprise Green Innovation? Evidence from Listed Heavy-Polluting Enterprises in China. Polish Journal of Environmental Studies, 32(5), 4919-4929. https://doi.org/10.15244/pjoes/166345
  49. Zor, S. (2023). A neural network-based measurement of corporate environmental attention and its impact on green open innovation: Evidence from heavily polluting listed companies in China. Journal of Cleaner Production, 432, 139815. https://doi.org/10.1016/j.jclepro.2023.139815
  50. Zor, S. (2023). Conservation or revolution? The sustainable transition of textile and apparel firms under the environmental regulation: Evidence from China. Journal of Cleaner Production, 382, 135339. https://doi.org/10.1016/j.jclepro.2022.135339