International Journal of Iron & Steel Society of Iran

International Journal of Iron & Steel Society of Iran

The Mediating Role of Entrepreneurial Innovation in the Impact of Environmental Policy on Performance: Evidence from Iran's Steel Industry

Document Type : Research note

Authors
1 Department of Business Management, Payame Noor University, Tehran, Iran
2 Department of Agriculture, Payame Noor University, Tehran, Iran
Abstract
This study aimed to investigate the role of entrepreneurial innovation as a mediating variable in the relationship between environmental policy instruments, organizational learning, intellectual capital, and organizational performance at Mobarakeh Steel Company of Isfahan. The statistical population consisted of 300 managers and experts from this company, of whom 171 were selected as the sample using simple random sampling. The present study is applied in terms of purpose, employing a descriptive-survey methodology. Data were collected through standard questionnaires and analyzed using structural equation modeling. The findings indicated that environmental policy instruments, organizational learning, and intellectual capital have a positive and significant effect on entrepreneurial innovation. Furthermore, entrepreneurial innovation plays a key mediating role in enhancing organizational performance across economic, social, and environmental dimensions. The results provide an integrated framework for understanding the interplay between these factors, emphasizing the need for industrial managers to enhance organizational learning and intellectual capital, while adopting green policies to foster entrepreneurial innovations and improve organizational performance.
Keywords

[1] Barney J.B, Resource-Based Theory: Creating and Sustaining Competitive Advantage, Oxford University Press. 2018.
[2] Nonaka I, Takeuchi H, The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation, Oxford University Press. 2020.
[3] Stewart T.A, Intellectual Capital: The New Wealth of Organizations, Doubleday. 2018.
[4] Hart S.L, Dowell G, A Natural-Resource-Based View of the Firm: Fifteen Years After, J Manag. 2021; 37(5): 1464-1479.
[5] Delmas M, Hoffmann V.H, Kuss M, Under the Tip of the Iceberg: Absorptive Capacity, Environmental Strategy and Competitive Advantage, Organ Environ. 2019; 32(3): 256-289.
[6] Drucker P.F, Innovation and Entrepreneurship, Routledge. 2014.
[7] Hitt M.A, Ireland R.D, Sirmon D.G, Trahms C.A, Strategic Entrepreneurship: Creating Value for Individuals, Organizations and Society, Acad Manage Perspect. 2024; 29(2): 127-145.
[8] Argote L, Organizational Learning: Creating, Retaining and Transferring Knowledge, Springer. 2023.
[9] Mohammadi R, Heydari M, Ghasemi S, The Impact of Environmental Policy Instruments on the Performance of Steel Companies, Industrial Management Studies. 2022; 19(3): 67-89. [In Persian]
[10] Kaplan R.S, Norton D.P, The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment, Harvard Business Press. 2021.
[11] Epstein M.J, Roy M.J, Sustainability in Action: Identifying and Measuring the Key Performance Drivers, Long Range Plann. 2021; 34(5): 585-604.
[12] Zhang, Li W, Environmental policy instruments and green innovation: Comparing the effects of taxes and subsidies, J Environ Manage. 2022; 324: 116363.
[13] Chen Y, Wang Y, Nevo S, Benitez-Amado J, Kou G, How Intellectual Capital and Organizational Learning Drive Innovation Performance in Asian Firms, J Bus Res. 2020; 109: 480-490.
[14] Horbach J, Empirical Determinants of Eco-Innovation in European Countries, Ecol Econ. 2021; 119: 83-93.
[15] Qiu L, et al. Green shared initiatives: Integrating green human resources, intellectual capital and innovation for environmental performance, Technovation. 2025; 125: 102789.
[16] Darvishi A, Ziaei M, Green Intellectual Capital and Innovation in the Oil, Gas and Petrochemical Industry of Khuzestan, Environmental Sciences. 2023; 20(3): 45-62. [In Persian]
[17] Hosseini-Mirza S, Mohammadi R, Karimi A, Intellectual Capital, Organizational Learning and Innovation in Tehran Pharmaceutical Companies, Management Research in Iran. 2022; 26(2): 89-110. [In Persian]
[18] Rezvani M, Karimi A, The Mediating Role of Innovation in the Relationship between Intellectual Capital and Private Bank Performance, Human Resource Management Research. 2023; 15(1): 23-45. [In Persian]
[19] Ghasemi S, Rezaei A, Environmental Policy Instruments and Innovation in the Cement Industry, Technology Management Studies. 2023; 11(2): 56-78. [In Persian]
[20] Ghaffari M, Shariati S, Organizational Learning and Green Innovation in the Automotive Industry, Change Management Research Journal. 2019; 13(2): 145-167. [In Persian]
[21] Norouzi H, Amini M, Soltani R, Intellectual Capital and Sustainable Performance in Mining Companies, Journal of Mineral Resources Management. 2023; 8(1): 34-56. [In Persian]
[22] Amini M, Soltani R, The Role of Entrepreneurial Innovation in the Relationship between Organizational Learning and Performance, Entrepreneurship Development. 2022; 15(4): 789-812. [In Persian]
[23] Heydari M, Ghasemi S, Rezaei A, The Combined Effect of Intellectual Capital and Organizational Learning on Performance, Public Management Research. 2021; 14(3): 123-145. [In Persian]
[24] Kumar J.J, et al. Green intellectual capital and firm performance through green innovation and environmental performance: Evidence from Indian manufacturing firms, J Intellect Cap. 2025; 26(1): 45-67.
[25] Toll R, Jiang Y, Does green innovation crowd out other innovations? The economic impact of green and non-green innovation in polluting and non-polluting industries. Res Policy. 2024; 53(2): 104567.
[26] Su J, et al. Environmental leadership, green innovation, environmental knowledge learning and organizational performance: Evidence from Chinese agricultural firms, J Clean Prod. 2022; 379: 134800.
[27] Wang C.H, Chang C.H, Shen G.C, The Effect of Environmental Corporate Social Responsibility on Environmental Performance and Business Competitiveness: The Mediation of Green Information Technology Capital, J Bus Ethics. 2020; 164(2): 371-388.
[28] Zhang , Li W, Environmental policy instruments and green innovation: Comparing the effects of taxes and subsidies, J Environ Manage. 2022; 324: 116363.
[29] García-Sánchez I.M, et al. Corporate governance and sustainable performance: The moderating role of innovation and the mediating effect of corporate reputation, J Bus Ethics. 2023; 184(3): 1-18.
[30] Epstein M.J, Roy M.J, Sustainability in Action: Identifying and Measuring the Key Performance Drivers, Long Range Plann. 2021; 34(5): 585-604.
[31] Kaplan R.S, Norton D.P, The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment, Harvard Business Press. 2021.
[32] Porter M.E, van der Linde C, Toward a New Conception of the Environment-Competitiveness Relationship, J Econ Perspect. 2022; 9(4): 97-118.
[33] Razavi S, Mohammadi R, Karimi A, The Role of Organizational Learning in the Relationship between Knowledge Management and Organizational Performance, Organizational Management Research Quarterly. 2022; 12(3): 89-112. [In Persian]
[34] Khani A, Rezaei M, Hosseini S, The Effect of Intellectual Capital on Organizational Performance with the Mediating Role of Innovation in the Petrochemical Industry, Journal of Industrial Management Studies. 2021; 16(2): 45-67. [In Persian]