Abstract
We analyze the effect of munificence on the development of a proactive environmental strategy (PES) and firm performance. In addition, we examine the moderating role of perceived munificence on the association between innovation capabilities and PES and between PES and firm performance. These relationships are tested in a sample consisting in 263 Spanish agricultural firms operating in three different geographical clusters. Our results broadly support our hypotheses and suggest that although perceived munificence favors the development of a PES, it is in hostile environments where PES generates competitive advantages.
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