Volume 29, Issue 2
DOI: 10.24205/03276716.2020.218
DECISION-MAKING MECHANISM OF ENTERPRISES FOR ECOLOGICAL INNOVATION: AN ANALYSIS BASED ON MENTAL ACCOUNTING
Abstract
From the perspective of behavioral economics, this paper deduces and interprets the decision-making mechanism of ecological innovation of enterprises. Specifically, the decision-making of enterprises for ecological innovation was modelled based on Howard-Sheth model, and the key influencing factors of the ecological innovation of enterprises were identified through the measurement method. The results show that the enterprises’ decision-making for ecological innovation is affected by the green incentive and green supervision of the government, the ecological innovation ability of enterprises, the benefits of ecological innovation, public preference for green products, progress of ecological technology, and the green market competition; the scale and age of enterprises also influence the enterprises’ decision-making of ecological innovation.
Keywords
Mental Accounting, Ecological Innovation, Decision-Making Mechanism, Howard-Sheth Model.