Environmental Proactivity and Environmental and Economic Performance: Evidence from the Winery Sector

Virginia Barba-Sánchez,Carlos Atienza-Sahuquillo

doi:10.3390/su8101014

Virginia Barba-Sánchez, Carlos Atienza-Sahuquillo

Open Access

https://doi.org/10.3390/su8101014

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Journal: Sustainability	Publication Date: Oct 13, 2016
Citations: 98	License type: CC BY 4.0

Affiliation: University of Castilla-La Mancha

Abstract

Environmental sustainability in the winery sector is receiving increased attention from governments, environmental groups, and consumers. The aim of this study is to explore the relationship between the degree of proactivity of a firm’s environmental strategies and its business performance. The novelty of this research work lies in its definition of business performance, which includes business environmental performance in terms of reducing the firm’s environmental impacts and eco-efficiency in the use of resources such as water, energy, and raw materials, in addition to its economic performance. A model is proposed and tested using a sample of 312 Spanish wineries. Data were analysed using partial least squares path modelling (PLS-PM). The fitness and robustness of the structural model proved adequate. The results indicate positive correlation of environmental proactivity with economic and environmental performance. Although environmental proactivity improves business performance, it has a greater impact on reducing environmental impacts and improving eco-efficiency.

Highlights

The search for new sources of competitive advantages has resulted in companies reconsidering the role of environmental topics in corporate strategy against a backdrop of overwhelming concern for environmental issues
A partial least squares (PLS) model must be analysed and interpreted in two stages, the structural measurement parameters are estimated in a single step [64]
The measurement model is evaluated by analysing whether the theoretical concepts are correctly measured using the observable variables; in the second stage, the structural model is evaluated in terms of, for example, the magnitude and significance of relationships between the different variables

Summary

Introduction

The search for new sources of competitive advantages has resulted in companies reconsidering the role of environmental topics in corporate strategy against a backdrop of overwhelming concern for environmental issues. Proof of this widespread concern is the Directorate-General for Environment study [1], which reveals that 95% of Europeans believe that protecting the environment is important to them personally. Environmental corporate strategy could represent a source of competitive advantage [4] in terms of eco-efficiency or cost reduction as a result of improved environmental performance and eco-innovation, for example, and by differentiating a company from its competitors in terms of an improvement in the company’s reputation for responsible management. Eco-efficiency and improved reputation focus on creating competitiveness through environmental or sustainable progress, enabling companies to act as driving forces for sustainable development [5,6]

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Conclusion