The Relationship between Green Organization Identity and Corporate Environmental Performance: The Mediating Role of Sustainability Exploration and Exploitation Innovation

The link between green organizational identity (GOI) and corporate environmental performance (CEP) has been investigated, but existing studies have no consistent conclusion. A significant research gap remains regarding the mediating role of sustainability exploration innovation (SER), sustainability exploitation innovation (SEI), and the moderating role of government environmental regulation (GER). This study explored the relationship between GOI and CEP in a moderated meditation model which includes SER, SEI, and GER. Using structural equation modelling and bootstrap method based on data sets from of 380 Chinese companies, the results show that: (1) GOI promotes SER, thereby enhancing CEP; (2) GOI promotes SEI, thereby enhancing CEP; (3) GER can positively moderate the indirect effect of GOI on CEP via SER; (4) GER negatively moderate the indirect effect of GOI on CEP via SEI. These findings suggest that firms choose different innovative ways between SER and SEI to improve CEP which depends on different levels of GER in China.