Environmental Proactivity Research Articles

Boards of directors and firms’ environmental proactivity

The present paper advances knowledge on the antecedents of firms’ environmental proactivity, assessing the explanatory power of corporate governance issues. In particular, our aim is to explore the relationship between board structure and firms’ proactive environmental strategies, within the agency theory and resource dependence theory frameworks, in order to outline if particular types of board members could represent a stimulating driver for firms’ environmental proactivity. The theoretical analysis is completed by an empirical investigation, performed by two linear regression models, on a sample of European firms, belonging to different polluting industries that were included in the Carbon Disclosure Project questionnaire 2014. The industry choice is related to the increasing pressure for better environmental performance that polluting industries are nowadays experiencing because of stakeholders and legislation requests. The results show that board structure and composition matters in firms’ environmental proactivity and have implications for managers, shareholders, and regulators who are interested in influencing firms’ environmental proactivity.

Do Stakeholder Orientation and Environmental Proactivity Impact Firm Profitability?

The impact of socially responsible corporate behavior on economic performance is a major preoccupation of managers today. This article explores the links between narrowly defined constructs: stakeholder orientation, environmental proactivity and profitability, from the perspectives of stakeholder theory and resource-based theory. We collected data on the food and beverage, and household and personal products, industries. Using structural equation modeling, this paper makes two contributions. We found a negative link between companies simply having a higher stakeholder orientation and profitability. Importantly, however, environmental proactivity not only had a positive impact on profitability, but also appeared to mediate the relationship between stakeholder orientation and profitability. In other words, if a company is more environmentally proactive, it will be more attentive to a broad array of stakeholders, and this will in turn contribute positively to profitability.

Do Stakeholder Orientation and Environmental Proactivity Impact Firm Profitability?

The impact of socially responsible corporate behavior on economic performance is a major preoccupation of managers today. This article explores the links between narrowly defined constructs: stakeholder orientation, environmental proactivity and profitability, from the perspectives of stakeholder theory and resource-based theory. We collected data on the food and beverage, and household and personal products industries. Using structural equation modeling, this paper makes two contributions. We found a negative link between companies simply having a higher stakeholder orientation and profitability. Importantly, however, environmental proactivity not only had a positive impact on profitability, but also appeared to mediate the relationship between stakeholder orientation and profitability. In other words, if a company is more environmentally proactive, it will be more attentive to a broad array of stakeholders, and this will in turn contribute positively to profitability.

Analysis of the generation of economic results in the different phases of the pro-environmental change process

Much of the research in environmental management has focused on analysing whether a firm's environmental efforts can be considered an argument in favour of or against its economic results, concluding that favourable results are not guaranteed, but depend on different aspects. This paper studies pro-environmental change processes in firms, focusing on how economic profit is generated during the process of changing to high degrees of environmental proactivity. Based on a sample of 303 Spanish firms located in the Aragon region, we classify four cluster categories of pro-environmental change. The description and comparative analysis of these categories leads us to consider that pro-environmental change is related to economic performance. The study's conclusions show that the economic benefits derived from pro-environmental change are greater when said change is more advanced or proactive.

When Does Family Ownership Promote Proactive Environmental Strategy? The Role of the Firm’s Long-Term Orientation

This research proposes an explanation for the conflicting extant evidence about whether family ownership of a business promotes proactive environmental strategy (PES). Based on insights drawn from strategic reference point theory, organizational identity theory, and the socioemotional wealth preservation perspective, we propose that family ownership has a moderated–mediated relationship with PES, with commitment as a moderator and long-term orientation as a mediator. A test using 454 China private firms with different levels of family ownership supports the hypotheses. This shows that PES as a strategy related to business ethics does not happen without commitment and long-term orientation.

The Relevance of Complementarities in the Study of the Economic Consequences of Environmental Proactivity: Analysis of the Moderating Effect of Innovation Efforts

In this paper, we present arguments and empirical evidence that highlights one key aspect of the study of the relationship between environmental proactivity and economic performance in firms: The effect of complementarities with other innovation-related resources. According to the literature, environmental proactivity—defined as the tendency to go beyond compliance with basic requirements established by law or institutionalized adoption of environmental practices in industry—enables firms to improve both economic and environmental outcomes. Within the framework of the resource-based view and the dynamic capabilities approach, we find that this win-win situation is far more likely when environmental proactivity is adopted in conjunction with a proactive innovation strategy. By analyzing panel data with 336 observations (42 Spanish industrial firms over an eight-year period), we demonstrate that environmental proactivity generates complementarities with technological proactivity that are sustainable and especially profitable in dynamic environments. More precisely, empirical evidence reveals that complementarities between environmental and technological proactivity are sustainable in groups of firms subject to high external pressure (such as that generated in the European Union Emissions Trading System context). Complementarities are also greater for companies during a financial crisis, a period characterized by high uncertainty and dynamism of the environment. This particularly advantageous win-win situation generated by environmental proactivity justifies its interpretation as a dynamic capability.

Examining corporate environmental proactivity and operational performance: A strategy-structure-capabilities-performance perspective within a green context

This study examines the process through which a firm's proactive environmental management strategy influences operational performance. We apply the strategy-structure-capabilities-performance (SSCP) theoretical perspective within a green context to develop a model that describes how green collaboration with suppliers and green process innovation enables firms to act more competitively. Our hypothesized model is empirically tested using a sample of supply chain managers derived from a Dun & Bradstreet database. Managerial and theoretical insights are also discussed.

How Is Environmental Proactivity Accomplished? Drivers and Barriers in Firms’ Pro-Environmental Change Process

The contaminating effects of economic activity and the scarcity of natural resources has led firms to a situation in which corporate strategy has been compromised by environmental issues. The objective of this paper is to analyse some of the factors determining the pro-environmental change process by considering the drivers encouraging firms to progress in environmental protection and the barriers that curb this progress. Using a structural equation model implemented on a sample of 303 firms, our results confirm a direct and positive effect of stakeholder pressure and of the expectations of obtaining competitive advantages from the pro-environmental change process. The results also confirmed the indirect effect of stakeholder pressure on pro-environmental change through managers’ expectations of obtaining competitive advantages, which play a mediating role in the firm’s response. Although managers interpret the barriers we have studied as obstacles to adopting environmental protection measures, they do not prevent any firm from reaching advanced levels of pro-environmental change.

Linking capabilities to green operations strategies: The moderating role of corporate environmental proactivity

The aim of this study is to investigate the specific role of supply chain capabilities (SCCs) in the implementation of green operations (GO) strategies. More importantly, it examines whether this relationship between SCCs and GO is contingent on corporate environmental proactivity (EP). Theoretical predictions of the conceptual model were tested using hierarchical regression analyses of data obtained from 225 senior logistics/supply chain managers in the global auto sector. To ensure the robustness of our findings, a post-hoc analysis using the partial least squares approach was conducted. Significant positive associations exist between specific SCCs and the adoption of GO strategies. EP positively moderates the external integration capability – green purchasing and the supplier appraisal capability – green manufacturing linkages. However, unexpectedly, EP negatively moderates the effect of internal integration capability on green purchasing. Equally surprising, consistent negative moderation effects are detected for supply chain flexibility on green design, green purchasing, and green manufacturing. This study contributes to the existing resource-based view literature by focusing on the capability – strategy linkage and its specific application to environmental management. The exploration of the moderating effects of EP confirms the important role of organizing context in the effective exploitation and deployment of resources and capabilities.

TRUST WHEN FINANCIAL IMPLICATIONS ARE NOT THE AIM: THE INTEGRATION OF SUSTAINABILITY INTO MANAGEMENT EDUCATION

Literature has paid detailed attention to the positive financial implications of considering the stakeholders’ environmental concerns. This paper contributes by using a trust framework to delimitate how stakeholders may influence managers’ environmental decisions even if they are not focused on financial objectives. Specifically, we analyse how perceptions of academic department heads about their stakeholders’ ability and benevolence influence the head’s willingness to integrate sustainability issues into the syllabus of the courses. We also investigate the direct and moderating role of the heads’ interest in financial aims and the direct influence of the school environmental proactivity. Our analysis includes a sample of 74 deans in 46 different business and engineering schools and a sample of 95 department heads in the field of management studies of 25 Spanish universities. The hierarchical moderated regression results confirm the positive influence of the ability and benevolence of the stakeholders and the heads’ interest in the financial aims, but not the moderating effects and the influence of the school proactivity. The paper provides research implications on the stakeholders’ dimensions influencing environmental decisions and practical implications showing that managers of organisations who wish to advance their environmental approaches may use partnerships with their stakeholders based upon trust.

Proactive environmental strategy development: from laggard to eco-innovative firms

PurposeThe environmental management literature has focussed on the analysis of the variety of strategic options with regards to environment protection, without providing an interesting detail of the transformation and change process between the different alternatives. Therefore, the purpose of this paper is to study pro-environmental change processes in firms, focussing on the width and the intensity of environmental measures implemented in a three-year period in different areas (productive process, product, management and supply chains).Design/methodology/approachPerforming a cluster analysis based on a sample of 303 Spanish firms, the study finds four categories of pro-environmental change.FindingsThe comparative analysis of these categories leads the authors to describe the pro-environmental change process as one with four stages that firms can go through. The first pro-environmental stage focusses on process measures. The second stage focusses on the adoption of management measures together with process measures. In the third stage, the firm moves after including measures in the product and in the supply chains. Companies that wish to advance further in this process, reaching the fourth stage of pro-environmental change, do so by increasing the intensity of the different measures adopted in previous stages, and through eco-innovation.Research limitations/implicationsThe main contribution of this paper relative to the previous literature is a more detailed vision of the strategic possibilities in environmental protection, providing information about the process of change and about how firms evolve to more advanced environmental strategy stages. Knowledge of this evolution process, little studied in the previous literature, helps us to understand the complexity and strategic significance of adopting environmental protection measures. This knowledge is useful for academics and for public and private managers responsible for designing and developing environmental strategy.Originality/valueOne of the most original findings of this paper points out that it is possible to identify a pattern of environmental change through which firms can evolve. In this change process, firms start by adopting process measures, while they adopt eco-innovation behaviour only in the most advanced stage of environmental proactivity.

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

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.

The important effects of national culture on the environmental proactivity of firms

Purpose The purpose of this paper is to verify if and how national culture affects firms’ environmental proactivity, by using a specific index: the Carbon Disclosure Score (CDS). Design/methodology/approach The study, an analysis of two linear regression models, examines how cultural values, measured by the Global Leadership and Organizational Behavior Effectiveness Research “should be” scores, affect companies’ environmental proactivity measured by CDS. Data about CDS derive from the Carbon Disclosure Project, which monitors Global 500 companies each year. Findings The analysis reveals that the values of in-group collectivism, performance orientation, assertiveness and uncertainty avoidance negatively affect firms’ environmental proactivity, while future orientation and gender egalitarianism have a positive impact. Research limitations/implications In spite of the limitations inherent in the indicator and the limited sample, the paper has some interesting implications. On a theoretical level, this study extends prior research in the field of organizations and natural environment, by examining the specific role exerted by national cultural dimensions on firms’ environmental proactivity. Practical implications From a practical standpoint, the study suggests that corporations and policy regulators should be sensitive toward national idiosyncrasies and formulate the environmental strategies according to the cultural values and contextual environment of the relevant region. Creating policies based on cultural values and adapting policies to a country’s culture can improve the effectiveness of environmental policies and raise individual and corporation awareness on the topic. Originality/value Most contributions consider environmental strategy at the national level. This study, instead, focusses on the effects of national culture on the environmental proactivity of firms.

The Virtues of Green Strategies: Some Empirical Support from the Alliance Context

Whilst strategic alliance performance has been extensively researched through the resource-based lens, it has yet to be examined under the natural-resource-based view (NRBV) of the firm. Building on the NRBV, this article argues that a firm’s level of environmental proactiveness affects its level of alliance satisfaction. The argument is tested by surveying Norwegian CEOs, and the results confirm a positive relationship. Moreover, the partner’s environmental proactiveness equally influences the focal firm’s satisfaction with the alliance, in consistent with related studies. In addition to providing new empirical evidence in support of the NRBV, and extending the alliance performance literature, the findings add to the corporate environmentalism literature by offering insights on the virtues of green strategies in an underexplored context.

Latent-Path Modeling Dengan Partial Least Square Guna Memprediksi Pengaruh Faktor-Faktor Isu Lingkungan Terhadap Sistem Pengendalian Manajemen Lingkungan

<em>This study explored the recently topic of environmental management control system issue which has't been conducted by Indonesian's researcher in accounting. The purpose of this study is to predict the effect of perceived factors related to environmental issues such as perceived ecological uncertainty; the degree of environmental proactivity; and stakeholders pressure that affected environmental management control systems. Primary data collection through survey method was done by distributing 325 sets of questionnaires and addressed to the managerial level of respondents who work in the ten of manufacturing companies listed on IDX, with the response rate of 19,70 percent. This study implements a latent-path modeling. Due to relatively few sample (N=64), this study did not allow covariancebased SEM to be applied in testing the hypotheses. So then the three hypotheses of this study were tested by the technique of partial least squares (PLS) using SmartPLS v.2 package, which applied the component-based SEM approach. The hypotheses test were empirically proved the ability to predict that all of these environmental issues positively influenced the environmental management control systems significantly. In the future, similar study still probably to be developed (in Indonesia) based on covariance-based SEM to gain the clear theoretical confirmation.</em>

Organizational antecedents and competitive consequences of environmental proactivity in the hotel industry

ABSTRACTThis research simultaneously examines the influence of organizational design variables (specialization, decentralization, formalization, link mechanisms, and informal social relations) on environmental proactivity, and the impact of this environmental proactivity on the competitiveness of hotels. The joint analysis of causes and consequences of environmental proactivity, and the relationship between organizational design and environmental management are topics that have rarely been explored in the literature. Using structural equation modeling methodology, a model is empirically tested using a survey instrument that was distributed to hotels in Spain. The findings indicate that specialization, formalization, link mechanisms, and informal social relations are effective coordination mechanisms to foster environmental proactivity. Moreover, the most effective way of encouraging the implementation of environmental practices is formalization. The findings also show that environmental proactivity contributes to improving competitive advantage in terms of both cost and differentiation.

The linkages between internationalization and environmental strategies of multinational construction firms

Multinational construction firms have increasingly engaged in more environmental management activities, however the relationship between internationalization performance and environmental proactivity remains unaddressed. The purpose of this study is to explore the linkage between internationalization and environmental strategy. The study posits that firms deploying a higher tier of environmental strategy correlate with higher degrees of internationalization. The sample of construction firms were drawn from the Engineering News-Record Top International Contractor list. Environmental information of each sample member was extracted through content analysis. Based on previous resource-based view studies, a schema of three clusters of environmental strategies was constructed to depict reactive, preventive, and proactive postures in strategic environmental management. Degree of internationalization is measured as investment intensity, geographical extensity, and geographical concentration. The results indicate that construction firms that are proactive in strategic environmental management exhibit greater internationalization up to an extent, where additional proactivity then no longer correlates with further heightened internationalization. In addition, the results present some preliminary findings on how multinational construction firms deploy strategic environmental capabilities, shedding light on internationalization portfolios across developed and developing regions.

"Stakeholders, Green Human Resource Management (GHRM) and environmental proactivity in Brazil"

State-of-the-art research has not yet fully conceptualized the relations between stakeholder pressures, Green Human Resource Management (GHRM) practices and the adoption of proactive environmental ...

Environmental operations management and its links with proactivity and performance: A study of the UK food industry

Two important strands of research within the literature on Environmental Operations Management (EOM) relate to environmental approach and performance. Often in this research the links between environmental approach, environmental performance and EOM are considered separately with little consideration given to the interrelationships between them. This study develops and tests a theoretical framework that combines these two strands to explore how UK food manufacturers approach EOM. The framework considers the relationships between an environmentally pro-active strategic orientation, EOM and environmental and cost performance. A cross-sectional survey was developed to collect data from a sample of 1200 food manufacturing firms located within the UK. Responses were sought from production and operations managers who are knowledgeable about the environmental operations practices within their firms. A total of 149 complete and useable responses were obtained. The reliability and validity of the scales used in the survey were tested using exploratory factor analysis, prior to the testing of the hypotheses underpinning the theoretical framework using hierarchical regression analysis. Our results generate support for a link between environmental proactivity, environmental practices and performance, consistent with the natural resource-based view (NRBV) and a number of studies in the extant literature. In considering environmental proactivity as a standalone concept that influences the implementation of environmental practices outlined in the NRBV, our study generates some novel insights into these links. Further our results provide some interesting insights for managers within the food industry who can identify the potential benefits of certain practices for performance within this unique context.

Factors Affecting Environmental Management by Small and Micro Firms: The Importance of Entrepreneurs’ Attitudes and Environmental Investment

AbstractThe paper investigates (1) the influence of external pressures, internal factors, and environmental attitudes of entrepreneurs on environmental proactive strategy in small and micro firms and (2) whether environmental proactive strategy impacts environmental investment and environmental performance. The study is based on a survey conducted in Italy and tests the set of hypotheses using a structural equations model. The results underline that external pressures and entrepreneurs’ attitudes are the most important predictors of environmental proactivity both for small and micro firms. The results also confirm a positive relationship between environmental proactivity and environmental investments as well as environmental performance. Yet, environmental investments show a strong influence on environmental performance. Commitment to environmental management by small and micro firms appears thus on the ground, showing that some substantive actions have started to be developed. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment