Employer–Employee Congruence in Environmental Values: An Exploration of Effects on Job Satisfaction and Creativity

Jelena Spanjol,Vivian Tam,Leona Tam

doi:10.1007/s10551-014-2208-6

Abstract

This study examines how the match (vs. mismatch) between personal and firm-level values regarding environmental responsibility affects employee job satisfaction and creativity and contributes to three literature streams [i.e., social corporate responsibility, creativity, and person–environment (P–E) fit]. Building on the P–E fit literature, we propose and test environmental orientation fit versus nonfit effects on creativity, identifying job satisfaction as a mediating mechanism and regulatory pressure as a moderator. An empirical investigation indicates that the various environmental orientation fit conditions affect job satisfaction and creativity differently. More specifically, environmental orientation fit produces greater job satisfaction and creativity when the employee and organization both demonstrate high concern for the environment (i.e., a high–high environmental orientation fit condition) than when both display congruent low concern for the environmental (i.e., a low–low environmental orientation fit condition). Furthermore, for employees working in organizations that fit their personal environmental orientation, strong regulatory pressure to comply with environmental standards diminishes the positive fit effect on job satisfaction and creativity, while regulatory pressure does not affect the job satisfaction and creativity of employees whose personal environmental orientation is incongruent with that of the organization.

Highlights

Evidence is mounting that firms can benefit significantly from embracing a “green imperative.” Proactively adopting and implementing environmentally-friendly strategies beyond mere compliance translates into greater market share (Menguc and Ozanne, 2005), improves consumer beliefs and attitudes (Becker-Olsen, Cudmore, and Hill, 2006), and enhances future financial performance (Waddock and Graves, 1997)
For employees working in organizations that fit their personal environmental orientation, strong regulatory pressure to comply with environmental standards diminishes the positive fit effect on job satisfaction and creativity, while regulatory pressure does not affect the job satisfaction and creativity of employees whose personal environmental orientation is incongruent with that of the organization
The results suggest that job satisfaction and creativity are maximized when congruence results from high levels of environmental orientation on the part of both employee and organization

Summary

Introduction

Evidence is mounting that firms can benefit significantly from embracing a “green imperative.” Proactively adopting and implementing environmentally-friendly strategies beyond mere compliance translates into greater market share (Menguc and Ozanne, 2005), improves consumer beliefs and attitudes (Becker-Olsen, Cudmore, and Hill, 2006), and enhances future financial performance (Waddock and Graves, 1997). Motivated by a large literature with heterogeneous results on corporate social responsibility’s (CSR) effect on organizational financial performance, Surroca et al (2010) proposed that these inconsistent results could be explained by two missing mediators: innovation and human capital They empirically assessed innovation as the ratio of R&D expenses relative to the number of employees in a firm and human capital as an organization’s overall level of employee job satisfaction (among other dimensions). Surroca et al (2010) confirmed empirically that innovation and human capital mediate the effects of corporate social responsibility (including environmental) initiatives on organizational performance, which in turn creates a “virtuous cycle” to enhance CSR further Given these results, the question arises as to what the mechanisms are (at the more granular employee level) that render innovation and human capital necessary components to successful and beneficial CSR initiatives.

Environmental Orientation and Creativity at the Firm and Employee Level

Findings

Theoretical Implications