How and when environmental regulation induces middle managers’ proactive behavior

Purpose: The purpose of this paper is to explore how middle managers respond to the career challenges caused by environmental regulation. In particular, this paper examines whether environmental regulation strength is positively related to middle managers’ openness toward change, and whether middle managers’ openness toward change is positively related to proactive behavior. Furthermore, the moderating role of top managers’ bottom-line mentality in these two relationships is examined. Design/methodology/approach: Cross-sectional survey research (n=155) was conducted. During a training program, data were collected from 155 middle managers from a listed company that manufactures primary products. With these data the authors examined the main relationship and also explored the moderating effect of top managers’ bottom-line mentality. Findings: Analysis of the findings indicates that perceived environmental regulation strength influences middle managers’ openness toward change and consequently their proactive behavior. In addition, top managers’ bottom-line mentality moderates both the link between environmental regulation strength and openness toward change and the link between openness toward change and proactive behavior. Originality/value: The findings of this study reveal how environmental regulation induces middle managers’ proactive behavior, and the influence of top managers’ mentality on how middle managers respond to environmental regulation both cognitively and behaviorally.