When Do Environmental Regulations Lead to Green Practices? The Role of Resource Commitment and Corporate Entrepreneurship

Shumin Liu; Qile He; Zhibin Lin; Nicholas O'Regan; Zuchang Zhong

doi:10.1002/bse.70106

When Do Environmental Regulations Lead to Green Practices? The Role of Resource Commitment and Corporate Entrepreneurship

Shumin Liu
, Qile He^*
, Zhibin Lin
, Nicholas O'Regan
, Zuchang Zhong^*

^*Corresponding author for this work

School of Business Guangdong University of Foreign Studies Guangzhou China
University of Derby, Discipline of Accounting, Economics, and Finance, Derby Business School, Kedleston Rd, Derby DE22 1GB, United Kingdom
Durham University Business School
Guangdong Institute for International Strategies Guangdong University of Foreign Studies Guangzhou China

Research output: Contribution to journal › Article › peer-review

4 Citations (SciVal)

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Abstract

Environmental regulations increasingly pressure firms to adopt green practices, yet their effectiveness remains debated. Drawing on institutional theory and the resource‐based view, this study investigates the mechanisms linking environmental regulations to green supply chain management (GSCM) practices. We propose and test a moderated mediation model using data from 231 Chinese manufacturers. Results show that circular‐oriented resource commitment mediates the regulation–GSCM relationship, whereas corporate entrepreneurship selectively moderates the path from regulations to resource commitment. These findings extend theory by showing how regulatory pressures shape resource deployment in environmental management and how entrepreneurial orientation enhances firms' ability to transform regulatory requirements into strategic resource commitments.

Original language	English
Pages (from-to)	9892-9907
Number of pages	16
Journal	Business Strategy and the Environment
Volume	34
Issue number	8
Early online date	29 Jul 2025
DOIs	https://doi.org/10.1002/bse.70106
Publication status	Published - 1 Dec 2025

Bibliographical note

Copyright © 2025 The Author(s). Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd.
This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.

Funding

This research was partially supported by the British Academy/Leverhulme Small Research Grant under Grant number SRG23\231185. This research was also partially supported by the National Natural Science Foundation of China under Grant number 71974039; Guangdong Provincial Philosophy and Social Science Planning Project under Grant numbers GD17XGL25, GD23CYJ13, and GD24CGL59; and Guangdong Provincial Key Laboratory of Humanities and Social Sciences in Ordinary Universities under Grant number 2022WSYS005.

Keywords

corporate entrepreneurship
green supply chain management (GSCM)
environmental management
resource commitment
environmental regulation

Access to Document

10.1002/bse.70106Licence: CC BY 4.0

Bus Strat Env - 2025 - Liu - When Do Environmental Regulations Lead to Green Practices The Role of Resource Commitment and
Copyright © 2025 The Author(s). Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
Final published version, 614 KBLicence: CC BY 4.0

Cite this

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abstract = "Environmental regulations increasingly pressure firms to adopt green practices, yet their effectiveness remains debated. Drawing on institutional theory and the resource‐based view, this study investigates the mechanisms linking environmental regulations to green supply chain management (GSCM) practices. We propose and test a moderated mediation model using data from 231 Chinese manufacturers. Results show that circular‐oriented resource commitment mediates the regulation–GSCM relationship, whereas corporate entrepreneurship selectively moderates the path from regulations to resource commitment. These findings extend theory by showing how regulatory pressures shape resource deployment in environmental management and how entrepreneurial orientation enhances firms' ability to transform regulatory requirements into strategic resource commitments.",

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AU - Lin, Zhibin

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AU - Zhong, Zuchang

N1 - Copyright © 2025 The Author(s). Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.

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When Do Environmental Regulations Lead to Green Practices? The Role of Resource Commitment and Corporate Entrepreneurship

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Bibliographical note

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