Florian Emanuel Fuchs, Christian Andreas Franz, Denise Fischer-Kreer, Andrea Greven, Malte Brettel
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Too Afraid to Act? How CEO Political Ideological Divergence Influences Environmental Innovation
In their efforts to combat climate change, some firms choose to develop environmental innovations. Given that environmental innovation strategies fall into the politically sensitive area of climate change protection, we theorize that CEO political ideological divergence can substantially impact the chosen strategy. Drawing on threat response theory, we find that CEO ideological divergence from a Republican president negatively affects environmental innovation intensity, while ideological divergence from a Democratic president positively affects it. Moreover, increased communication of sustainability orientation weakens this studied impact. We utilized a longitudinal data set of S&P 500 CEOs (2010–2018) with 916 firm-year observations and 188 unique firms, to present theoretical and managerial implications for environmental innovation, CEO political ideology, and threat response theory.
期刊介绍:
Organization & Environment encourages informed discussion about the social roots and consequences of environmental problems and stimulates deeper reflection on the meaning and significance of the natural world. By critically examining the impact of human production and consumption systems on the natural environment, Organization & Environment develops new perspectives on organizations that encourage environmentally sensitive reflection, inquiry, and practice.