Environmental Performance: Interplay Between the Roles of Process Innovation Capability and Managerial Innovation Implementation

Unlike a large portion of previous innovation research that has focused on performance consequences of the adoption of technological innovations, this study focuses on the benefits gained from the implementation of managerial innovations. We examine the mediating role of managerial innovation implementation on the influences of technological process innovation capability and pressure from external stakeholders on environmental performance. We develop hypotheses and test them using survey data from 192 ISO 14001 certified facilities in the US. The results suggest that extent of implementation partially mediate the effect of process innovation capability but fully mediate the effect of external pressure on environmental performance. We discuss the implications of these findings for research and practice on the implementation of managerial innovations.