Seyed Najmedin Mousavi
Abstract
This study investigates the effect of green structural capital on organizational reputation in the food industry concerning the mediating role of green innovation. This research is a descriptive survey regarding the applied purpose and data collection method. In order to measure the research variables, ...
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This study investigates the effect of green structural capital on organizational reputation in the food industry concerning the mediating role of green innovation. This research is a descriptive survey regarding the applied purpose and data collection method. In order to measure the research variables, the Huang and Kang Green Structural Capital Questionnaire (2011), Green Innovation Zhi et al.(2019), and Luma-Ahoo (2008) Organizational Reputation Questionnaire were used. Data analysis was performed using structural equation modeling and Smart PLS software. The statistical population includes large Iranian food companies with various products that are leaders in offering new products. The results showed positive and significant relationships between structural capital, green innovation, and organizational reputation. Green innovation also plays a mediating role between green structural capital and organizational reputation. Therefore, the present study confirms the significant effect of green structural capital on increasing green innovation and the organizational reputation of companies in the food industry.IntroductionThe issue of green structural capital has attracted the attention of many researchers and policymakers after the move of advanced countries towards the development of green industries. In other words, issues such as structural capital have become very important after the change of the basis of competition of countries and companies from tangible resources to intangible resources. Many companies have turned to providing green products and services to overtake their competitors and gain superiority and reputation in the business world. Organizational reputation is intangible and results from effectively using the organization's intangible assets, such as capital. It is structural. Although the main focus of researchers is on human capital as the most important intangible capital for providing green products and services and achieving organizational reputation, structural capital has received less attention. In support of this opinion, many authors believe that green structural capital and its components significantly improve the organization's reputation. Green structural capital designed to improve the organization's reputation increases green innovation. This research expands on the effect of structural capital on value creation and considers organizational reputation to be the result of green structural capital and green innovation. In other words, in this research, we examine how structural capital and institutionalized knowledge about capabilities, structure, technologies, policies, and organizational culture related to green food products help to increase the organization's reputation and green innovation. Also, this research may interest policymakers and investors in the food industry because it suggests that achieving profitability and reputational competitiveness results from paying close attention to green structural capital and improving innovation in providing green products and services. This research seeks to prove that the green structural capital of companies active in the food industry has increased innovation in providing green and organic products that customers and consumers welcome and improves the company's reputation. Literature ReviewReputation is an intangible asset and one of the most important and fundamental elements of an organization's survival; for this reason, it is defined as a competitive criterion and differentiation (Mehtap & Kokalan, 2012, p: 3611). Fombrun and Van Riel (2004) consider an organization's reputation as its ability to meet stakeholders' expectations. Organizational reputation is the intersection of stakeholders' perceptions of how well organizational responses estimate the demands and expectations of multiple stakeholders (Fombrun et al., 2000, p. 243). Organizational reputation is a multifaceted concept that includes a set of beliefs about the organization's capacities, goals, background, history, and mission, which lies in a network of different audiences (Carpenter & Krause, 2010, p. 27).The attention of many countries and organizations was drawn to the category of green innovation after the holding of the Earth Summit in 1992 in Rio de Janeiro, which was about sustainable development and preservation of the limited resources of the planet. Green innovation has been mentioned with various terms such as environmental innovation, natural innovation, and sustainable innovation (Arfi et al., 2018, p; 212). Green innovation is one of the concepts related to the environmental management of organizations, which has become very popular among manufacturing companies (Zailani et al., 2015, p. 1117). Green innovation is new processes, systems, and methods that increase the organization's business value by promoting sustainable development goals and minimizing environmental adverse effects (Aboelmaged & Hashem, 2019, p. 856).If we explain sustainable performance using the metaphor of a tree, the tree's root is human capital, the tree's trunk is structural capital, and the fruits and leaves of that tree are social capital. Therefore, to use social capital, the tree trunk must allow nutrients to reach the leaves from the roots. Any failure in structural capital leads to the disconnection of human and social capital, and sustainable performance is not realized (Chen & Chang, 2013, p. 83). Structural capital refers to the company's non-human assets (Yusliza et al., 2019, p. 3).MethodologyIn this research, a quantitative approach and a structured questionnaire were used, which were sent to the members of the statistical sample via email. This research focuses on food manufacturing companies in Iran as the primary statistical population. This research focuses only on 200 large food companies with diverse products operating in different industry sectors and having a significant market share in various food sectors. To develop the measurement tool, the questionnaire of Huang and Kang (2011), which includes six dimensions, was used to measure green structural capital. The questionnaire of Zhi et al. (2019), which includes two dimensions, was used to measure green innovation. The Loma-Aho (2008) questionnaire, which includes five dimensions, has been used to identify organizational reputation.Regarding the validity and reliability of the data collection tool, it should be mentioned that the reliability of the questionnaires was confirmed using Cronbach's alpha method, and its validity was confirmed using content validity. A 5-level Likert scale (completely agree, agree, neutral, disagree, and completely disagree) was used to answer the questions, and numbers 1 to 5 were used to score the answers. Also, this research uses the structural equation modeling technique and Smart PLS software to examine the hypotheses and test the model.ResultsPLS-SEM results show positive and significant relationships between structural capital, green innovation, and organizational reputation. Also, green innovation mediates between green structural capital and organizational reputation. Therefore, the current research confirms the significant effect of green structural capital on increasing green innovation and the organizational reputation of companies in the food industry.DiscussionToday, companies have no choice but to carry out environmental protection activities to comply with international environmental protection regulations and satisfy environmentally friendly consumers (Hart, 1995; Berry & Rondinelli, 1998). The two forces that lead companies to act in the direction of environmental protection are the pressure from environmental laws and regulations and the pressure from environmentally friendly consumers. Environmentally friendly consumers are increasing in the world. This issue pushes companies towards environmental management, as consumers choose environmentally friendly products and even pay relatively high prices for green products.ConclusionCompanies that pioneer green innovation can charge relatively higher prices for their products and gain more competitive advantage and reputation by increasing their market share. Economic enterprises that invest heavily in environmental management can both avoid the problems of protests and punishments regarding environmental protection and, improve their company's image and develop their competitive advantages by developing new markets. Increase In addition, economic enterprises can embody the concept of green products in the design and packaging of their products to increase the benefits of differentiation. Therefore, participation in environmental management and green innovation actively positively affects the company's competitive advantages.
