Short-term thinking, long-term costs: How managerial myopia undermines green innovation
South African Journal of Business Management
| Field | Value | |
| Title | Short-term thinking, long-term costs: How managerial myopia undermines green innovation | |
| Creator | Zhou, Mingkun Yang, Simin Qiu, Xuhua Zeng, Yun Zhu, Kunjie | |
| Description | Purpose: This study investigates the impact of managerial myopia on green innovation in Chinese listed companies from 2001 to 2021, focusing on how short-termism undermines sustainable innovation at both firm and industry levels.Design/methodology/approach: Utilising Management Discussion and Analysis (MDA) textual analysis and corporate patent data, we employ high-dimensional fixed-effects and robustness tests to assess the relationship between managerial myopia and green innovation. Heterogeneity analysis and mediation models explore variations across firm types and mediating mechanisms, including RD investment, digital transformation and environmental, social and governance (ESG) management.Findings/results: Results confirm that managerial myopia significantly inhibits green innovation, with stronger effects in non-state-owned enterprises (non-SOEs), non-heavy polluting firms and non-CEO-duality firms. At the industry level, managerial myopia indirectly suppresses green innovation through reduced RD investment, limited digital transformation and weaker ESG management, as validated by mediation analysis.Practical implications: The findings offer policymakers and corporate leaders’ insights into aligning managerial incentives with long-term environmental and economic goals. Encouraging sustainable focus in non-SOEs and enhancing RD and ESG practices could mitigate the adverse effects of short-termism on green innovation.Originality/value: This research integrates MDA textual analysis with patent-based metrics to provide a novel perspective on managerial myopia’s impact on green innovation in an emerging market context. It elucidates nuanced mechanisms – RD, digital transformation and ESG management – through which short-termism disrupts sustainability, contributing to the literature on corporate governance and environmental innovation. | |
| Publisher | AOSIS | |
| Date | 2026-02-13 | |
| Identifier | 10.4102/sajbm.v57i1.5337 | |
| Source | South African Journal of Business Management; Vol 57, No 1 (2026); 12 pages 2078-5976 2078-5585 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://sajbm.org/index.php/sajbm/article/view/5337/3625
https://sajbm.org/index.php/sajbm/article/view/5337/3626
https://sajbm.org/index.php/sajbm/article/view/5337/3627
https://sajbm.org/index.php/sajbm/article/view/5337/3629
https://sajbm.org/index.php/sajbm/article/view/5337/3628
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