The effects of an enabling approach to eco-control on firms’ environmental performance: A research note

Abstract

This research note provides additional empirical evidence relating to the performance effects of diagnostic and interactive control, both in isolation and in combination with an enabling approach to control. Drawing on data from a survey of 221 Australian firms, the findings suggest that while diagnostic eco-control has no direct influence on environmental performance, its interaction with an enabling approach yields a positive complementary effect. However, while interactive eco-control and an enabling approach are independently associated with environmental performance, their interaction effect is not significant, which implies that their combination may not necessarily be value-adding. Finally, the results also indicate a non-linear (inverse U-shaped) association between an enabling approach to control and environmental performance, which implies that an increased emphasis on an enabling approach may lead to diminishing marginal returns.