The Effects of System Pressure on Low-Carbon Innovation in Firms: A Case Study from China

Abstract

With the signing and implementation of the Paris Agreement, low-carbon models have become the general trend for future development. In this context, many countries have successively introduced relevant low-carbon systems within their companies. These systems bring a lot of pres sure on traditional manufacturing enterprises. This study deeply explores the influential mecha nism of system pressure on the theory of low-carbon innovation of enterprises. It analyzed 328 ques tionnaires from 107 enterprises in China by using theoretical models based on the upper echelons theory and the dynamic capability theory. The results of the study indicate that (1) system pressure significantly promotes enterprises’ low-carbon innovation; (2) low-carbon dynamic capability me diates between system pressure and enterprise low-carbon innovation; (3) executives’ low-carbon awareness positively moderates the relationship between system pressure and low-carbon dynamic capability; (4) executive low-carbon awareness moderates the intermediary role of low-carbon dy namic capability between system pressure and enterprise low-carbon innovation. Theoretically, this study deepens empirical studies on system pressure and enterprise low-carbon innovation. This study contributes to the application of the upper echelons theory, dynamic ability theory and enter prise behavior theory in the field of low-carbon research. In view of this, this study intends to serve as a reference material for future low-carbon innovation-related research and a guide for the low carbon management of enterprises.