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Environmental Regulation And Firm-Level Innovation: The Moderating Effects Of Organizational And Individual-Level Variables, Carol M. Sanchez

Peer Reviewed Articles

Many analysts argue that environmental regulation is a barrier to innovation in business firms. A competing view holds that environmental regulation contributes to firm-level innovation. This article attempts to partially reconcile these two views. The article argues that organizational- and individual-level variables moderate the effect of environmental regulation generally on the radicalness of innovation at the firm level. It proposes that four moderating variables--the degree to which information analysis about environment issues is centralized, firm size, the intensity and integration of research and development (R&D) units within the firm, and whether regulation is perceived as an opportunity--change the sign of …