Rivalry signal transmission, technology spillover and corporate environmental performance

Abstract

We investigate how the Rivalry Signal (RS) and Technology Spillover (TS) affect Corporate Environmental Performance (CEP) through Corporate Environmental Management (CEM). We identify Rival Signal and Technology Spillover from firms' information exchange with their rivals in export networks by product-level data of China based on product space theory. RS indicates intensified competition in a market, and TS indicates useful information in that market. We then explore the effects of RS and TS on CEP, and the empirical results show that RS and TS improve CEP simultaneously. These effects are more pronounced for firms with larger sizes, regions with more severe pollution and coastal areas. By employing mediating effect model, we find that the RS promotes firms' technological improvements and broadens the range of firms' imported intermediates, thereby enhancing CEP; the TS motivates firms to switch to the market's core product and brings about technological improvements, subsequently improving CEP.