The Effect of Global and National Value Chains on Environmental Innovation and Research and Development: An Analysis of Ibovespa Companies

Ferreira, Lucas Benedito Gomes Rocha; Rizzi, Denise Isabel; Silva, Crisiane Teixeira da; Hoffmann, Valmir Emil

doi:10.7819/rbgn.v25i1.4211

Lucas Benedito Gomes Rocha Ferreira

definition of research problem

development of hypotheses or research questions

development of theoretical propositions

definition of methodological procedures

data collection

statistical analysis

analysis and interpretation of data

manuscript writing

Regional University of Blumenau, Department of Accounting, Blumenau, Brazil

https://orcid.org/0000-0002-6779-6694

Denise Isabel Rizzi

definition of research problem

development of hypotheses or research questions

development of theoretical propositions

statistical analysis

analysis and interpretation of data

manuscript writing

Federal University of Santa Catarina, Department of Accounting, Florianopolis, Brazil

https://orcid.org/0000-0001-9291-5336

Crisiane Teixeira da Silva

definition of research problem

development of theoretical propositions

statistical analysis

analysis and interpretation of data

manuscript writing

Federal University of Santa Catarina, Department of Accounting, Florianopolis, Brazil

https://orcid.org/0000-0002-8370-6927

Valmir Emil Hoffmann

development of hypotheses or research questions

development of theoretical propositions

literature review

critical revision of the manuscript

manuscript writing

Federal University of Santa Catarina, Department of Accounting, Florianopolis, Brazil

University of Zaragoza, Zaragoza, Spain

https://orcid.org/0000-0002-8977-8454

Responsible Editor:

Prof. Eduardo Armando

Reviewers:

Marcio Lopes Pimenta; The other reviewer declined to use his name.

Conflicts of interest:

The authors have no conflict of interest to declare.

Authors:

1.Lucas Benedito Gomes Rocha Ferreira, PhD in Accounting and Administration, Regional University of Blumenau,

Blumenau, Brazil.

E-mail: lucasbenegrf@gmail.com

2.Denise Isabel Rizzi, PhD in Accounting, Federal University of Santa Catarina, Florianopolis, Brazil.

E-mail: rizzi.denise@gmail.com

3.Crisiane Teixeira da Silva, PhD Student in Accounting, Federal University of Santa Catarina, Blumenau, Brazil.

E-mail: crisiane.silva26@gmail.com

4.Valmir Emil Hoffmann, PhD in Business Administration, Federal University of Santa Catarina, Florianopolis, Brazil.

University of Zaragoza, Zaragoza, Spain.

E-mail: emil.hoffmann67@gmail.com

Authors' contributions:

1^st author: Definition of research problem; development of hypotheses or research questions (empirical studies); development of theoretical propositions (theoretical work); definition of methodological procedures; data collection; statistical analysis; analysis and interpretation of data; manuscript writing.

2^nd author: Definition of research problem; development of hypotheses or research questions (empirical studies); development of theoretical propositions (theoretical work); statistical analysis; analysis and interpretation of data; manuscript writing.

3^rd author: Definition of research problem; development of theoretical propositions (theoretical work); statistical analysis; analysis and interpretation of data; manuscript writing.

4^th author: Development of hypotheses or research questions (empirical studies); development of theoretical propositions (theoretical work); literature review; critical revision of the manuscript; manuscript writing.

Sector	Code	Quantity	Percentage
Cyclical consumption	2	13	18.57%
Public utility	10	11	15.71%
Non-cyclical consumption	3	10	14.29%
Industry	6	9	12.86%
Materials	8	9	12.86%
Health	5	5	7.14%
Energy	4	4	5.71%
Real estate	9	4	5.71%
Information technology	7	3	4.29%
Telecommunication	1	2	2.86%

Variable	Measurement		Source
Dependent Variable - Innovation Capacity
Environmental Innovation Score (EIC)	Score that reflects the company's ability to reduce costs and environmental burdens for its customers and thus create market opportunities through environmental products with sustainable processes or ecological designs. This score, derived from ESG reports, ranges from 0 to 100.		Aldieri et al. (2019)Aldieri, L., Carlucci, F., Vinci, C. P., & Yigitcanlar, T. (2019). Environmental innovation, knowledge spillovers and policy implications: A systematic review of the economic effects literature. Journal of Cleaner Production, 239, 118051. http://dx.doi.org/10.1016/j.jclepro.2019.118051. http://dx.doi.org/10.1016/j.jclepro.2019... and Varyash et al. (2020)Varyash, I., Mikhaylov, A., Moiseev, N., & Aleshin, K. (2020). Triple bottom line and corporate social responsibility performance indicators for Russian companies. Entrepreneurship and Sustainability Issues, 8(1), 313-331. http://dx.doi.org/10.9770/jesi.2020.8.1(22). http://dx.doi.org/10.9770/jesi.2020.8.1(...
Research and Development (R&D)	Measures research and development expenses incurred in a given period.		Chabbouh and Boujelbene (2020)Chabbouh, H., & Boujelbene, Y. (2020). Open innovation in SMEs: The mediating role between human capital and firm performance. The Journal of High Technology Management Research, 31(2), 100391. http://dx.doi.org/10.1016/j.hitech.2020.100391. http://dx.doi.org/10.1016/j.hitech.2020....
Independent Variables - Value Chain Regional Settings
Global Value Chain (GVC)	$\frac{Fragment Count}{Value Chain Relationships}$	Measures the supplier-customer relationship score at a global level.	Sedita et al. (2021)Sedita, S. R., Hoffmann, V. E., Guarnieri, P., & Toso Carraro, E. (2021). Prosecco has another story to tell: The coexistence of multiple knowledge networks in the same value chain. International Journal of Wine Business Research, 33(4), 502-522. http://dx.doi.org/10.1108/IJWBR-06-2020-0024. http://dx.doi.org/10.1108/IJWBR-06-2020-...
National Value Chain (NVC)	$\frac{Fragment Count}{Value Chain Relationships}$	Measures the score of the supplier-customer relationship in Brazil.	Lema et al. (2015)Lema, R., Quadros, R., & Schmitz, H. (2015). Reorganising global value chains and building innovation capabilities in Brazil and India. Research Policy, 44(7), 1376-1386. http://dx.doi.org/10.1016/j.respol.2015.03.005. http://dx.doi.org/10.1016/j.respol.2015....
Independent Control Variables
Leverage (LEV)	$\frac{Current Liabilities + Non-Current Liabilities}{Total Assets}$		Scarpellini et al. (2018)Scarpellini, S., Marín-Vinuesa, L. M., Portillo-Tarragona, P., & Moneva, J. M. (2018). Defining and measuring different dimensions of financial resources for business eco-innovation and the influence of the firms’ capabilities. Journal of Cleaner Production, 204, 258-269. http://dx.doi.org/10.1016/j.jclepro.2018.08.320. http://dx.doi.org/10.1016/j.jclepro.2018...
Size (SIZ)	Logarithm of Total Assets		Póvoa and Monsueto (2011)Póvoa, L. M. C., & Monsueto, S. E. (2011). Tamanho das empresas, interação com universidades e inovação. Revista de Economia, 37(No. esp.), 9-24. http://dx.doi.org/10.5380/re.v37i4.28870. http://dx.doi.org/10.5380/re.v37i4.28870...
Return on Assets (ROA)	$\frac{Net Profit}{Total Assets}$		Chabbouh and Boujelbene (2020)Chabbouh, H., & Boujelbene, Y. (2020). Open innovation in SMEs: The mediating role between human capital and firm performance. The Journal of High Technology Management Research, 31(2), 100391. http://dx.doi.org/10.1016/j.hitech.2020.100391. http://dx.doi.org/10.1016/j.hitech.2020....
Return on Equity (ROE)	$\frac{Net Profit}{Total Equity}$		Chabbouh and Boujelbene (2020)Chabbouh, H., & Boujelbene, Y. (2020). Open innovation in SMEs: The mediating role between human capital and firm performance. The Journal of High Technology Management Research, 31(2), 100391. http://dx.doi.org/10.1016/j.hitech.2020.100391. http://dx.doi.org/10.1016/j.hitech.2020....
Stock Return (SR)	Refers to the difference in the share price of company i at time t in relation to time t - 1 divided by the share price of company i at time t - 1.	$\frac{P_{i .t} {- P}_{i .t - 1}}{P_{i .t - 1}}$	Zaniboni and Montini (2017)Zaniboni, N. C., & Montini, A. A. (2017). O efeito do ambiente macroeconômico em empresas inovadoras. Pretexto, 18(1), 120-131. http://dx.doi.org/10.21714/pretexto.v18i1.4150. http://dx.doi.org/10.21714/pretexto.v18i...
Corporate Governance (CG)	Score that measures the company's ability, through the use of best management practices, to generate greater value for shareholders. This score, derived from ESG data, ranges from 0 to 100.		Scherer and Voegtlin (2020)Scherer, A. G., & Voegtlin, C. (2020). Corporate governance for responsible innovation: Approaches to corporate governance and their implications for sustainable development. The Academy of Management Perspectives, 34(2), 182-208. http://dx.doi.org/10.5465/amp.2017.0175. http://dx.doi.org/10.5465/amp.2017.0175...
Sector and Year Fixed Effects
Year	2016, 2017, 2018, 2019, and 2020.
Sector	(1) Telecommunication; (2) Cyclical Consumption; (3) Non-cyclical Consumption; (4) Energy; (5) Health; (6) Industry; (7) Information Technology; (8) Materials; (9) Real Estate; (10) Public Utility.

Panel A - Descriptive statistics
Variable	Mean	Standard deviation		25th percentile		Median		75th percentile		Observation
EIC	22.65	30.97		0		0		41.23		309
R&D	59.3	1.62		2.78		8.97		19.6		57
GVC	1.01	1.39		0		0		2		350
NVC	0.71	1.4		0		0		0		350
LEV	0.633	0.24		0.49		0.65		0.76		349
SIZ	23.68	1.27		22.95		23.74		24.46		349
ROA	0.037	0.72		0.010		0.041		0.068		349
ROE	0.011	1.54		0.046		0.121		0.187		349
SR	0.39	0.69		-0.005		0.24		0.605		326
CG	52.82	21.09		36.89		55.4		69.8		309
Panel B - T-test of means between groups of firms with and without evidence of value chain relationships
Variables	With a value chain			No evidence of a value chain					Student's t test
Variables	Mean	SD	Obs.	Mean	SD		Obs.		T	Significance
EIC	27.96	32.41	131	18.48	29.34		178		2.632	0.008***
R&D	104.6	215.4	30	12.33	13.85		27		2.267	0.031**
LEV	0.71	0.27	135	0.586	0.207		214		4.421	0.000***
SIZ	24.36	1.24	135	23.25	1.087		214		8.497	0.000***
ROA	0.021	0.091	135	0.048	0.055		214		-3.083	0.002***
ROE	0.075	0.53	135	-0.028	1.925		214		0.75	0.46
SR	0.25	0.49	133	0.49	0.782		193		-3.39	0.000***
CG	59.68	16.96	131	47.88	22.37		178		5.25	0.000***

Variables	Dependent Variable: Environmental Innovation Score
Variables	Coefficient	t statistic	Coefficient	t statistic
Constant	37.446***	3.93	-118.034**	-2.48
Global Value Chain	5.178***	2.95	3.826**	2.14
National Value Chain	-1.405	-0.79	-1.949	-1.05
Leverage	-	-	24.826 ^**	2.53
Size	-	-	5.898 ^***	3.15
Return on Assets	-	-	86.453***	2.87
Return on Equity	-	-	0.171	0.17
Stock Return	-	-	0.126	0.04
Corporate Governance	-	-	-0.055	-0.66
Sector and Year Fixed Effects	Yes		Yes
Significance of the Model	0.000***		0.000***
R²	21.49		26.60
Adjusted R²	17.47		21.16
Jacques Bera	0.0003		0.0009
Variance Inflation Factor	3.08		2.92
Durbin-Watson	2.11		2.17
Number of Observations	309		305

Variables	Dependent Variable: Research and Development
Variables	Coefficient	t statistic	Coefficient	t statistic
Constant	-7.27	-1.09	-2.17***	-5.40
Global Value Chain	6.08***	2.93	4.21 ^**	2.11
National Value Chain	4.45**	2.05	-3.23	-1.10
Leverage	-	-	-9.99	-1.14
Size	-	-	1.01 ^***	5.57
Return on Assets	-	-	1.54	0.90
Return on Equity	-	-	2.31	1.23
Stock Return	-	-	1.84	1.16
Corporate Governance	-	-	-2.21	-0.17
Sector and Year Fixed Effects	Yes		Yes
Significance of the Model	0.000***		0.000***
R²	72.49		90.91
Adjusted R²	64.17		86.24
Jacques Bera	0.0001		0.0015
Variance Inflation Factor	3.15		5.02
Durbin-Watson	0.071		0.072
Number of Observations	57		57

\begin{array}{l} E I C = β_{0} + β_{1} G V C_{t j} + β_{2} N V C_{t j} + β_{3} L E V_{t j} + β_{4} S I Z_{t j} + β_{5} R O A_{t j} + \\ β_{6} R O E_{t j} + β_{7} S R_{t j} + β_{8} C G_{t j} + F i x e d E f f e c t s S e c t o r + F i x e d E f f e c t s Y e a r + ε \end{array}

\begin{array}{l} R & D = β_{0} + β_{1} G V C_{t j} + β_{2} N V C_{t j} + β_{3} L E V_{t j} + β_{4} S I Z_{t j} + β_{5} R O A_{t j} + \\ β_{6} R O E_{t j} + β_{7} S R_{t j} + β_{8} C G_{t j} + F i x e d E f f e c t s S e c t o r + F i x e d E f f e c t s Y e a r + ε \end{array}

[1] Responsible Editor:

Prof. Eduardo Armando

Brasil

Brasil

The Effect of Global and National Value Chains on Environmental Innovation and Research and Development: An Analysis of Ibovespa Companies

Abstract

Purpose

Theoretical framework

Design/methodology/approach

Findings

Practical & social implications of research

Originality/value