Corporate Sustainability Disclosure, Green Innovation, and Firm Competitiveness: The Roles of Environmental Uncertainty and Institutional Pressure
Liya Zheng, Leila Aoudi, Farah Ktaish, Mingxuan Li
Keywords:
CSRD alignment, green innovation, environmental uncertainty, institutional pressure, firm competitiveness
Abstract:
This study examines the impact of Corporate Sustainability Reporting Directive (CSRD) alignment on green innovation and firm competitiveness among Chinese manufacturing firms, with environmental uncertainty and institutional pressure as the moderating variables. Grounded in institutional theory, the study analyzes how institutional pressure and environmental uncertainty condition the translation of sustainability reporting into environmental innovation. In this study, we collected data from 320 senior managers, sustainability officers, and R&D managers across three Chinese provinces using a structured questionnaire. Using partial least squares structural equation modeling, the results reveal that CSRD alignment significantly enhances both green innovation and firm competitiveness. Green innovation partially mediates the relationship between CSRD alignment and competitiveness, confirming its role as a strategic pathway to competitive advantage. In terms of moderation, environmental uncertainty weakens the positive effect of CSRD alignment on green innovation, whereas institutional pressure does not significantly moderate this relationship. These findings extend institutional theory by demonstrating how sustainability directives drive innovation-based competitive advantage through contingent mechanisms. Practically, the study offers managers strategic insights into leveraging sustainability reporting to strengthen environmental performance and competitive positioning amid market uncertainty.
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 Corporate Sustainability Disclosure, Green Innovation, and Firm Competitiveness: The Roles of Environmental Uncertainty and Institutional Pressure [PDF file] [Filesize: 443.66 KB]
 10.7441/joc.2026.SI.17
Zheng, L., Aoudi, L., Ktaish, F., & Li, M. (2026). Corporate Sustainability Disclosure, Green Innovation, and Firm Competitiveness: The Roles of Environmental Uncertainty and Institutional Pressure. Journal of Competitiveness, 18(SI 2), 187–205. https://doi.org/10.7441/joc.2026.SI.17
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