The Effect Of Tmt Environmental Attention On Corporate Environmental Strategy

The Corporate Environmental Strategy(CES)has drawn much attention in recent years.However,research concerned with the motivation of corporate environmental strategy seldom considers the power of attention,such literature are especially limited in China.Moreover,fewer researchers extend their eyes beyond the corporate level when they investigate the moderating roles of provincial factors.Relying on the natural resource-based view and attention-based view of the firm,we hypothesize that,with the moderating role of environmental regulations and regional disparity,the focus of TMT environmental attention can be positively reflected on CES.Using longitudinal data on 215 Chinese listed firms in manufaturing industries and applying the multilevel linear model,we find support for the above hypotheses We furthur explore the impact of corporate environmental strategy on its total factor productivity.The paper contributes in the following ways.First,we enrich the empirical literature on attention-based view from a different perspective.This paper uses the automatic text analysis to measure the attention of TMT and investigates the mechanism of TMT environmental attention in the formation of corporate strategic behavior.Second,we extend the research perspective from the micro level(firms)to the meso level(regions)to look upon the moderating roles of provincial regulation and regional disparities on on the relationship between the TMT envionmental attention and the CES,so that we expand the literature on managerial cognitions,and corporate environmental protection behaviors.Third,we have contributed methodologically to the current strategic research by adopting the hierachical panel data model to analyze our empirical data.Data of both the firm and reginoal level are concerned in this paper.Few literature in the strategic field analyze their data in this way.Using hierachical longitudianal data model allows us to solve the problem of data measurement error,improve the explanatory power of the model of this paper,and enhance the credibility of the results of this study.Based on our empirical results,managerial implications are put forward:First,environmental regulations introduced by the local government work effectively to promote the top managemers to transform their concern for the nature environment into environmental protection behaviors,and local governments in China should gradually step up environmental regulation.Second,enacting a more proactive environmental strategy allows the firm to significantly improve its TFP performance,encourging a sustainable development.