Managerial Ties, Green Marketing Innovation, and Competitive Advantage in China and the United States: A Comparative Study

Purpose: While previous research has provided valuable insights into the antecedents of green innovation activities, our understanding of how green marketing innovation is influenced by different types of managerial ties in different countries is limited. To address this puzzle, the authors integrate social network theory with institutional theory to conduct a cross-country study on the differentiated effects of business ties and political ties on different types of green marketing innovation (i.e. exploration and exploitation) and further on competitive advantage.
Methodology/approach: The authors collect survey data from 204 Chinese and 293 U.S. manufacturing firms. Measurement invariance and ordinary least squares regression are used to analyze data and test the proposed hypotheses. Findings: This study finds that compared with political ties, business ties are more effective in improving green marketing exploration in the U.S. than in China. Compared with business ties, political ties are more effective in improving green marketing exploitation in China than in the U.S. There are no country-specific differences in the relative importance of green marketing exploitation compared to exploration for achieving competitive advantage.
Research implications: While social ties generally benefit firms, our study contributes to the literature by demonstrating that different types of social ties support distinct green marketing innovation activities. However, these benefits are contingent on country-specific contexts, including variations in formal institutions and cultural values. Consequently, our research advances the literature on social networks and marketing innovation, moving beyond the typical single-country focus.
Practical implications: Both exploration and exploitation of green marketing are crucial for firms in China and the U.S. to gain a competitive advantage. Managers should clearly define their firm’s goals for various types of green marketing innovation—whether focusing on exploration, exploitation, or a combination of both. Additionally, strategically building social ties, whether in business or politics, can enhance green marketing innovations. Originality/value/contribution: This study contributes to the literature on the role of managerial ties in green marketing innovation by adopting a cross-country institutional perspective, offering fresh insights into how managers can leverage business and political ties to drive green marketing innovation in China and the U.S.
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