Institutional pressure, knowledge acquisition and a firm's environmental innovation

Abstract Based on institution theory, resource‐based theory and innovation theory, this study proposes a framework to investigate how institutional pressure affects environmental innovation through the mediating role of knowledge acquisition. In total, 263 firms in the Chinese manufacturing industry were selected as the research sample, and a structural equation model was used to examine the mediating role of knowledge acquisition between regulative pressure, normative pressure, cognitive pressure and the firm's environmental innovation. The results showed that regulative pressure and normative pressure had positive effects on the firm's environmental innovation, whereas the effect of cognitive pressure was not significant. In addition, knowledge acquisition positively promoted environmental innovation, and played a mediating role between regulative pressure, normative pressure and environmental innovation. Finally, this paper provides suggestions for government policy‐makers and managers to promote environmental innovation.