Adoption Of Proactive Environmental Strategies Research Articles

The effect of competition from informal firms on proactive environmental strategies in emerging economies

AbstractDrawing on the Attention Base View (ABV) theory, this paper examines the adoption of Proactive Environmental Strategies (PES) by formal firms in emerging economies and explores the influence of informal competition. We investigate the moderating effects of contextual factors (number of formal competitors) and firm characteristics (CEO's experience). Using data from the 2019 World Bank Enterprise Survey, we apply a Negative Binomial model to a sample of 7,436 manufacturing firms across 25 emerging economies. Unlike previous evidence, our findings suggest that formal firms facing competition from informal counterparts tend to adopt PES to bolster competitiveness. However, the perception of high formal competition and the CEO's industry experience may reduce PES adoption. This study advances our understanding of PES adoption in emerging economies, emphasizing the significance of informal competition. It also increases the evidence of the ABV approach to environmental strategy research, offering insights for managing environmental challenges in emerging markets.

Exploring the antecedents and consequences of environmental performance in micro-enterprises: The case of the Italian craft beer industry

This research aims at investigating the antecedents and consequences of environmental performance in the craft beer industry. Precisely, we assessed how some factors, i.e. the external pressures, internal drivers, environmental awareness, as well as the adoption of proactive environmental strategies, influences the environmental performance; we also assessed to what extent the latter leads to better cost and differentiation advantages and operating performance. Our exploratory research relies upon original data acquired surveying 203 firms operating in the Italian craft beer industry, a new and fast-growing sector. We test our hypotheses using structural equation modelling. Results highlight the importance of carefully considering the proactive environmental strategy and environmental awareness in order to increase the environmental performance that, in turn, has a significant impact on the operating performance through cost advantages.

Green initiatives and their competitive advantage for the hotel industry in developing countries

The purpose of this study is to identify the organisational capabilities that complement the adoption of a proactive environmental strategy, and the specific benefits that can arise from such a strategy. The study focuses on developing countries that depend heavily on the tourism industry, but where environmental problems challenge the future of this industry. The study proposes that learning orientation, innovativeness, and quality management positively affect the adoption of proactive environmental strategies. Based on empirical data from hotels in Thailand, PLS-SEM was applied to explore these relationships. The results confirm the hypotheses but also show that the green strategy positively affects environmental performance and organisational competitive advantage. More specifically, green strategies lead directly to positive environmental performance in terms of the consumption of utilities, waste management, and environmental risk management, leading to cost competitiveness and competitive advantage through differentiation.

Study of determinants of proactive environmental strategies in India's power sector

Abstract Why are some firms more environmentally proactive than their counterparts from the same industry? What are these factors, which are responsible for the adoption of proactive environmental strategies which are beyond the requirement of extant laws? The power sector is a critical sector for the development of infrastructure in a developing economy like India. The emissions from the power sector are a cause of concern for the environmentalists and stakeholders. Some firms are observed to be more environmentally proactive than others even though the regulatory requirements are same. This paper aims to identify the determinants of the adoption of proactive environmental strategies in the power sector in India. The available studies are generalised and very few are sector-specific. No such research is carried out specifically for the power sector in India. Statistical tools like SPSS (Statistical Programme for Social Science) and AMOS (Analysis of Moment Structures) are used to analyse the quantitative data collected through a questionnaire-based survey from major power sector companies. Reliability and validity of data collected are checked using Exploratory Factor Analysis. Subsequently, Confirmatory Factor Analysis is applied to identify the determinants of adoption of proactive environmental strategies. The identified determinants are ranked using Structural Equation Modelling. The study identifies institutional pressure, performance improvement, business practices, and market pressure and benefits as determinants. Institutional pressure and performance improvement emerge as determinants which are ranked higher as compared to other two. The specific contribution of the study is to provide an understanding for the policymakers in Indian power sector to recognise these determinants in the formulation of policies and guidelines for environmental protection.

Larger and greener: Disentangling the industry effect on proactive environmental strategy in the Italian context

This research aims to investigate the influence of the industrial context on the implementation of proactive environmental strategies in listed firms, by verifying how the industry environmental impact affects the development of proactive environmental strategies (PES). Prior research on PES identified firm size as one of the most relevant and universally accepted antecedent, but recently a new stream of research has underlined the importance of the industry context. Due to the difficulties of studying environmental issues in SMEs, extant research on the role of the environmental impact of industries on PES within SMEs is lacking. For this reason, this study investigates the influence of the industrial context on PES in SMEs, to verify how it affects PES. Beginning from the assumption that more resources imply a higher engagement in proactive environmental strategies (PES), this study verifies, through the industry-context perspective, that in environmentally critical industries, SMEs can be more proactive than large corporations. The results indicate that the adoption of PES is principally subject to the industry effect and that belonging to an industry characterised by a significant environmental impact fosters the adoption of a more proactive approach to environmental issues. The relation is confirmed for both SMEs and large firms, not only within the two categories but also transversely. Thus, this research shows that SMEs working in environmentally critical industries show significant degrees of interest, motivation, and implementation of environmental management issues. This highlights that SMEs in environmentally critical industries place relative importance on managerial implications, risk management, and compliance, are less interested in external appraisal or initiatives that require huge investments.

Sustainability strategy as a source of competitive advantages in the tourism industry. A model for the integration of natural resources

Goal and objectives of the dissertationGoalTo develop a model that will allow the identification of a route for achieving competitiveness through the incorporation of environmental strategies and an optimal management of natural resources in the accommodation industry, as a strategy for sustainability at the same time.ObjectivesThe empirical study aims to determine to what extent an orientation towards natural resources can offer competitive advantages for hotels in the Spanish province of Huelva.* Objective 1: Determining to what extent the degree of integration of natural resources (environmental performance) influences the economic results of the company.* Objective 2: Identifying the strategies followed by the hotels in the province of Huelva to integrate natural resources into their management model.* Objective 3: Identifying the variables capable of accelerating the insertion of sustainable/environmental strategies in hotels.* Objective 4: Identifying the variables liable to hinder the insertion of sustainable/environmental strategies in hotels.* Objective 5: Observing the results obtained by hotels as a result of having incorporated the management of natural resources into their business models.MethodologyFrom a methodological point of view, first of all a comprehensive review of the scientific literature was carried out, presenting the most recent advances into the topic under study. Based on this review a model was created, to be tested empirically. More specifically, a review of a number of approaches widely accepted in the scientific community was conducted, based on the theory of strategy and its approach to resources and capabilities (namely the theory of dynamic capabilities) and particularly the natural-resource-based view of the firm proposed by Hart in 1995. In fact, the latter is considered the backbone of this research, although it has been completed by integrating elements from institutional theory, stakeholders' theory and the proactive environmental management perspective.Concerning the empirical testing of the proposed research model:* For its validation, the questionnaire designed (of structured type) was pre-tested using industry experts (managing directors in a couple of hotels).* A sample of the selected population was taken, as indicated in the table below.* The unidimensionality of each scale was verified.* The measurement models were analysed: individual reliability of each item was checked, as well as the composite reliability of each construct. Convergent and discriminant validity of each construct were also confirmed.* With regard to the structural model, its path coefficients and corresponding Student's T values (through bootstrapping) were calculated, as well as its predictive power (through the coefficients R2 and Q2).* The Partial Least Squares (PLS) technique was used for hypotheses testing. The final model was composed of 12 constructs and 32 hypotheses.The characteristics of the survey conducted are presented with more details in the following table.ResultsUnder the above mentioned theoretical framework, this research tries to provide an answer to the questions posed, considering the various motivations for the integration of natural resources into the strategy of tourist accommodation companies, as well as the main results these organizations can accrue as a consequence of the implementation of this strategy.Mainly, the empirical results gathered shown that normative and mimetic pressures explain the adoption of proactive environmental strategies, as reflected by Student's T values of 2.700 and 2.054 respectively; and β coefficients of 0.294 and 0.335 respectively. At the same time, the orientation to sustainable development is clearly impacted by the level of internationalization of clients, with a Student's T value of 3.756 and a β coefficient of 0. …

Mechanisms Underlying the Impact of Family Involvement on a Firm’s Proactive Environmental Strategy

From a socioemotional wealth perspective, this study uncovers the effects of family involvement on a firms’ adoption of proactive environmental strategy (PES). We propose a three-way indirect effec...

Proactive Environmental Strategies in Healthcare Organisations: Drivers and Barriers in Italy

This study sheds new light on why healthcare organisations are having difficulty responding to the growing pressure from stakeholders to proactively address their responsibility to deliver high-quality services without harming the environment. Basing our work on past research on stakeholder pressure and environmental barriers, we conceptualise and empirically test the effect of the interplay between stakeholder pressure and internal barriers on healthcare organisations’ adoption of proactive environmental strategies (PESs). To test the proposed hypotheses, a survey was carried out among medical directors of Italian healthcare organisations in 2012. Our results show that the lack of commitment to environmental issues within the organisation represents the main barrier to healthcare organisations’ implementing PESs. Furthermore, the difficulties in evaluating the impacts of advanced environmental practices negatively moderate the influence of stakeholders on developing PESs. Our findings contribute to extending previous knowledge on PESs in two ways: (i) focusing on the healthcare sector, our study investigates the phenomenon in a research context that has been largely overlooked in the sustainability literature; and (ii) cross-cutting previous research on stakeholder pressure and internal barriers, the study conceptualises and tests a more complete framework for understanding the adoption of PESs.

Environmental Policies for Sustainable Development: An Analysis of the Drivers of Proactive Environmental Strategies in the Service Sector

AbstractThis article examines the drivers of environmental proactivity in the service sector. Hypotheses were tested using multiple hierarchical regression analysis with data from a sample of 41 managers in Spanish environmental consulting companies. Results show statistically significant relationships between (1) managers’ attitude towards sustainable development, (2) positive short‐term firm performance and (3) the strategic attitude of environmental consulting firms and the adoption of proactive environmental strategies by the studied companies.This article is pioneering in the analysis of drivers of corporate proactive environmental strategies in the consultancy sector. The findings have practical implications for policy‐makers, investors and other agents interested in a better management of the environment. Economic incentives such as subsidies to environmental training programmes for managers can induce changes in cognitive components of managers’ attitudes. Education policies could also affect managers’ attitudes towards the environment. Companies may also encourage attitude change by providing their managers with financial assistance to receive environmental training. External assistance to develop a strategic attitude could be an interesting policy to encourage voluntary environmental initiatives. Finally, fiscal deductions, tax breaks or subsidies to those companies interested in managing the environment can be effective incentives for those firms facing a weak short‐term financial situation. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

Determining factors of environmental management practices in Portuguese local entities

PurposeThe purpose of this paper is to analyse the development of environmental management practices by Portuguese local entities and their determining factors.Design/methodology/approachThe data were collected by sending a postal questionnaire. In order to measure the degree of development of environmental management practices, an index of environmental management practices (EMPI) was developed, which reflects the extent to which a set of 16 environmental management practices have been implemented by the entities included in the sample. In total, four variables are considered in this study as possible factors that drive the development of environmental management practices by local entities: type of entity; size; proactive environmental strategy; and Local Agenda 21.FindingsResults indicate the degree of development of environmental management practices in Portuguese local entities is low. Additionally, entity size, the adoption of proactive environmental strategies and the implementation of Local Agenda 21 are explaining factors of the degree of development of such practices.Originality/valueThe paper adds to the international research on environmental management in the public sector by providing empirical data from a country, Portugal, where empirical evidence is still relatively limited.

Proactive environmental strategy in a supply chain context: the mediating role of investments

There is a growing body of knowledge on the link between environmental management and supply chain management, but there is contradicting evidence on the impact of a proactive environmental strategy on environmental performance. Therefore, this paper investigates the impact of proactive environmental strategy on environmental performance as mediated by environmental investments. We also consider the antecedents of the adoption of proactive environmental strategy. We develop and test hypotheses, using data collected from 96 Turkish manufacturers through an online questionnaire. The model was tested using partial least squares (PLS), a structural equation modelling method. The results show that a proactive environmental strategy leads to higher environmental investments; both internally and externally in collaboration with suppliers. Our findings support our hypothesis that environmental investments act as a mediating variable between proactive environmental strategy and environmental performance. The results also show that customer pressure and, particularly, organisational commitment positively impact the extent to which firms adopt a proactive environmental strategy.

The Effect of Director Interlocks on Firms' Adoption of Proactive Environmental Strategies

ABSTRACTManuscript Type: EmpiricalResearch Question/Issue: We examine whether director interlocks enable or inhibit a firm's adoption of a proactive environmental strategy. Specifically, using resource dependence theory, we argue that director interlocks with suppliers are linked to varying likelihoods that a firm adopts a proactive environmental strategy, depending on the relation between the provided resources and the environmental approach.Research Findings/Insight: Based on a sample of US electric firms, our results show that director interlocks with firms providing knowledge‐intensive business services are positively linked to the adoption of proactive environmental strategies. However, director interlocks with firms providing financial resources and fossil fuel are negatively related to the adoption of these strategies for our sample.Theoretical/Academic Implications: Board linkages may enable and inhibit proactive environmental strategies. We contribute to resource dependence theory by offering empirical evidence that the reduction of uncertainty about critical resources by director interlocks may either make business change easier or constrict a firm's autonomy, making change more difficult.Practitioner/Policy Implications: The influence of interlocking directors varies depending on the type of resources that director interlocks transfer to their organizations. As a result, the selection of specific director interlocks can become very important to the strategic goals of the firm. Regulators should continue to pay attention to potential risks for other stakeholders from director interlocks.

Barriers to the adoption of proactive environmental strategies

This study contributes to the knowledge of the difficulties or barriers found by firms when adopting proactive environmental strategies, providing empirical evidence from 240 Spanish industrial firms. A set of 25 barriers are initially evaluated by the managers of the sample firms and are grouped into four types of difficulties facing firms: external barriers, endemic limitations of the firm, limited environmental motivation and limited preparation of employees and operational inertia. The estimation of a structural equation model leads us to conclude that only the barriers identified as endemic limitations of the firm can be characterized as “effective barriers”, defined as problems preventing firms from progressing toward proactive environmental behavior.

Under the Tip of the Iceberg: Absorptive Capacity, Environmental Strategy, and Competitive Advantage

Although existing research evaluates how the adoption of proactive environmental strategies affects corporate performance, there is little understanding of the organizational mechanisms that link such strategies to competitive advantage. It is, therefore, unclear how environmental strategies relate to other management strategies that could lead to a competitive advantage. In this article, we analyze the organizational capabilities that underlie a firm’s ability to generate competitive advantage from the adoption of proactive environmental strategies. We develop and test a model where absorptive capacity facilitates the development of proactive environmental strategies that result in competitive advantage. Results from a survey of 157 German chemical firms strongly support the model.

Empirical analysis of determinants of adoption of proactive environmental strategies in India

AbstractProactive environmental strategies are beyond extant laws and it is important to understand why companies go beyond compliance. The paper discusses motivations behind their adoption of proactive environmental strategies in India. The research results show that institutional pressure is the most significant determinant of adoption of proactive environmental strategies. Other factors such as managerial attitude, business case of environmental investments and productivity enhancement initiatives are also significant. Based on the research findings, the paper proposes some important managerial implications in connection with adoption of proactive environmental strategies. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.

AN INTERNATIONAL COMPARISON OF THE FACTORS AFFECTING ENVIRONMENTAL STRATEGY AND PERFORMANCE.

While the adoption of proactive environmental strategies, such as environmental management systems (EMS), has increased worldwide, there has been little research evaluating why facilities adopt the...