Rapid economic development brings tremendous pressure on environment and resources, makes it a constraint of development to most countries. Chinese government attached great importance to the relationship between economic development and environmental protection, and proposed new concepts such as establishing a scientific development concept, building an ecological civilization, a harmonious society, and setting environmental protection as a basic national policy. It can be seen that China's environmental regulation is constantly strengthening, with corresponding increasing binding force on enterprises. While managing environment pollution and doing good to protection, environmental regulation, however, will bring certain economic burden to the industry by causing adverse effects on output and productivity.
Based on the possible effects of environmental regulation on enterprises and industries, this paper not only studied the effects of environmental regulation on enterprises in China from the microcosmic perspective, but also studied its effects on industry from the macro level.
In the micro level, the effects of environmental regulation on enterprises are studied mainly by the grounded theory. And several cases of electroplating and oxidation industry in the heavy pollution industry in Shenzhen were combed and summarized, on the basis of related research. The core dimension of the concept of quasi-hierarchical service organization was identified by concept refinement and category aggregation. In the macro level, the effects of environmental regulation on industry were studied mainly based on the relevant data of 34 industries from 2005 to 2015, and then modeling method was used to empirically analyze the effects of environmental regulation on enterprise entry, technological innovation and industrial performance.
Finally, the results of our research show that:
(1)The restriction of environmental regulation leads to enterprise organizational innovation, or in another words, a new management form of enterprises, which refers to a new enterprise or a joint enterprise with the simple hierarchies, and the substructure is not completely constrained by the superstructure, while the interests of each contracting party are considered. The contract-based quasi-hierarchical organization form is very flexible, which not only can meet the environmental regulation requirements of the government, and provide the conditions for small enterprises in the heavy pollution industry to continue their operation, but also can avoid the risks well, reduce the cost by economics of scale, and improve the efficiency of production. It is an adaptive organizational form developed by the electroplating industry in Shenzhen under environmental regulation, through the joint evolution and continuous transformation of electroplating small enterprises and productive service organizations.
(2)Environmental regulation has not become a barrier to enterprise entry, but it has become the factor that attracts enterprises to enter, to a certain extent. It has some incentive effect on industrial technological innovation, so that the improvement of industrial performance can be indirectly resulted in by innovation compensation. However, the incentive effect of environmental regulation on technological innovation is not obvious in the medium and long term. Although the final result effected by environmental regulation on the industrial performance of China is negative, which is indicated by our data analysis, this effect is not significant.
Key Words: Environmental Regulation, enterprise organizational innovation, Industrial Performance, Contract-based Quasi-hierarchical Organization Form, Electroplating Industry
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