Strategic flexibility, green management, and firm competitiveness in an emerging economy

Abstract

Combining the dynamic capability perspective and institutional theory, this study examines how firms in emerging economies respond to green management pressures and measures what they gain by adopting green management practices. Drawing on data from 272 Chinese firms based on responses from two key informants in each firm, this study finds that strategic flexibility has a positive effect on the adoption of green management practices, and institutional support moderates this relationship by strengthening the positive effect. The study also advances a richer explanation of the link between adoption of green management practices and competitiveness by revealing the mediating role of organizational legitimacy in this link. These findings provide important implications for explaining how firms in emerging economies combine internal strategic flexibility and external institutional support to implement green management strategies, which in turn improves their legitimacy and competitiveness.