Natural Resource-based View Research Articles

Do female directors influence firm value? The mediating role of green innovation

PurposeBuilding on the upper echelons and natural resource-based view (NRBV) theory, this study aims to examine the role of green innovation in mediating the relationship between female directors and firm value.Design/methodology/approachThis study uses panel data for 2016–2020 of 108 manufacturing firms listed on the Indonesia Stock Exchange with 518 observations. This study collects data from the firm’s annual and sustainability reports and the Osiris database. This study uses feasible generalized least squares in controlling heteroscedasticity and correlation to validate the relationship.FindingsThe results show that green innovation mediates the relationship between female directors and firm value. The results support the upper echelons theory, which views that the impact of the female directors’ policy has a positive effect on green innovation. The results also support the NRBV theory, which views green innovation as an environmentally friendly resource capable of increasing firm value.Originality/valueIn examining the indirect effect of female directors on firm value, this study is one of the early works that discuss the mediation relationship using green innovation in the relationship of female directors to firm value drawn from upper echelons and NRBV theory.

How Does Corporate Green Innovation Strategy Translate into Green Innovation Performance Based on Chain Mediation?

Innovation is the engine of economic growth, and green innovation can make this growth sustainable. In the context of tightening resource and environmental constraints and the strategic process of innovation-driven growth, green innovation strategy has become the core element and effective driving force for manufacturing enterprises to achieve green transformation and gain sustainable competitive advantage. Firstly, this paper constructs a research framework of “corporate green innovation strategy (CGIS)—green organization identity (GOI)—employees’ green innovation behavior (EGIB)—corporate green innovation performance (CGIP)” based on the natural resource-based view. Second, this paper investigates the impact of CGIS on EGIB and the chain mediating role of GOI and EGIB in this process. The study shows that GIS has a significant positive impact on CGIP. GOI mediates between CGIS and CGIP. EGIB mediates between CGIS and CGIP. GOI and EGIB have a chain mediating role between CGIS and CGIP. This paper analyzes the process mechanism of CGIS on CGIP and provides an intentional reference for manufacturing companies to implement green innovation strategy and improve green innovation performance.

Corporate Sustainability Orientation, Sustainable Development Practices, and Firm Performance of MSMEs in Malaysia.

Over the past two years, the Covid 19 pandemic was the greatest communicable outbreak that has upended almost every aspect of our lives. Despite this, the progress in realizing sustainable development remains as a challenge in the global perspective and yet it should be eliminated. The world is facing a pragmatic threat of climate change which potentially damage the Earth’s ecosystems. There is a need for all relevant parties to cooperatively care for the environment in decreasing the environmental degradation and climate change in achieving sustainability to leave no one left behind. Our study highlights the perception of the firm at firm-level that can link environmental sustainability practices and firm performance, especifically in the Micro, Small and Medium Enterprises (MSMEs). Hence, in this study, we will examine how corporate sustainability orientation influences firm performance, and how corporate sustainability orientation influences firm performance through environmental practices with the use of the Natural Resource-based View (NRBV) theory and Stakeholder theory. This study uses a judgmental sampling method with a set of criteria to have an accurate result for the study. A total of 219 responses were collected and this study uses a Partial Least Squares – Structural Equation Modeling (PLS-SEM) approach in data analysis. From the analysis, both corporate sustainability orientation and environmental practices were found significant, while the relationship between corporate sustainability orientation and firm performance was found significant through the indirect effect. For future studies, this study suggests researcher to explore corporate sustainability orientation in the perspective of firm-level and individual-level to have a comparison in terms of perception towards sustainability practices and how it impacts the firm performance.

Impact of pollution prevention strategies on environment sustainability: role of environmental management accounting and environmental proactivity.

Environmental sustainability involves meeting current needs without compromising the abilities of future generations. Practical steps must be taken to prevent pollution, decrease waste, and utilize resources. This study investigates the predictors of environmental sustainability in SMEs, focusing on the role of environmental management accounting and environmental proactivity in linking pollution prevention strategies to environmental sustainability using the natural resource-based view theory. This study surveyed 308 Pakistani SMEs employees and tested the data using SPSS v28 and AMOS v26. The results show that pollution control initiatives increased the usage of environmental management accounting, which in turn had a positive impact on environmental sustainability. The study also finds that environmental proactivity is significantly moderate and that environmental management accounting mediates these associations. To the best of our knowledge, this study is unique in that it is the first to provide sustainable implications based on the current framework. This study highlights the importance of implementing pollution prevention strategies, integrating environmental management accounting practices, and fostering environmental proactivity to enhance environmental sustainability performance in SMEs in Pakistan, ultimately leading to improved business competitiveness, positive environmental impacts, and a sustainable future. SMEs can focus on implementing proactive pollution prevention strategies such as waste reduction, energy conservation, and resource optimization. By adopting a proactive approach to pollution prevention, SMEs can reduce their environmental impact and enhance their sustainability performance.

Does going intellectually green matter? Accentuating the role of eco-innovation speed and quality in a competitive post-Covid 19 emerging market

PurposeThe post-pandemic emerging market is competitive and green, which has contributed to the growing pressure on firms to adopt into their business models green strategies with competitive outcomes. Therefore, this paper aims to draw from the natural resource-based view (NRBV) theory to examine how green intellectual capital (IC) can influence green competitive advantage of manufacturing firms in Ghana, by elucidating the mediating role of eco-innovation speed and quality in the relationship.Design/methodology/approachCross-sectional survey data were obtained from 212 manufacturing firms in Ghana, using purposive sampling techniques. Exploratory and confirmatory factor analyses were conducted to determine the factor structure of the measurement models. Structural equation modelling technique was used to analyse the hypothesized relationships.FindingsThe study found that green IC has a positively significant effect on green competitive advantage of manufacturing firms. However, while eco-innovation speed positively mediates the relationship, eco-innovation quality plays a negative mediating role in the effect of green IC on green competitive advantage of manufacturing firms in Ghana.Practical implicationsThe framework of this study provides to managers of manufacturing firms, a superior green strategy that is unique, valuable and non-substitutable with the capable to provide green competitive edge to firms in a turbulent sustainability-driven market.Originality/valueThrough the lens of the NRBV theory, this study provided a firstly knowledge on the crucial role of eco-innovation speed and quality in driving firms’ green competitive advantage within a post-covid emerging market.

A REVIEW OF MANAGING CARBON EMISSIONS FOR SUSTAINABLE SUPPLY CHAIN MANAGEMENT

Carbon emissions were one of the most critical contributors to climate change, and the recent climate agreement had agreed for all participating countries to reduce their emissions. Malaysia has pledged to reduce 45 per cent of its carbon emissions by 2025. However, reducing carbon emissions from the industry was still limited due to voluntary reporting, particularly among manufacturers. Thus, it is ambitious for the Malaysian government to achieve its target by 2025. A complete review is performed to go through the literature and determine the review's research path. This review aims to investigate the low carbon performance based on the manufacturing industry's low carbon supply chain practices. The findings show that low carbon production was insignificant in reducing overall carbon emissions. In contrast, the rest of the low carbon supply chain practices were by the Natural Resource-Based-View (NRBV) theory. It helps to identify companies' low carbon supply chain practices to reduce carbon emissions and meet environmental regulations. Additionally, the review also provided new insight into mediating effect that contributes to the organizational theory of NRBV. The theoretical hypotheses were tested with bias-corrected and accelerated (BCA) bootstrap confidence intervals. The instrument used in this review is a questionnaire, and the questionnaire consists of five (5) scales which tapped on (LCSCM), energy management, and low carbon performance. Responses from the respondent were collected via an online survey between Malaysian manufacturing industries. SmartPLS was used to perform the model and structural analyses. The result shows that LCSCM influence carbon performance directly and indirectly, so the hypotheses are supported. This review is one of the earliest attempts to record empirical evidence regarding companies’ low carbon supply chain practices and performance. Thus, the review shows results can be used and extended to develop low-carbon supply chain frameworks.

Green-lean-six sigma practices and supporting factors for transitioning towards circular economy: A natural resource and intellectual capital-based view

Conservation of natural resources has a critical role in promoting sustainable development. However, emerging evidence suggests that the overexploitation of natural resources and inadequate concern for environmental sustainability by manufacturing firms in recent times have posed a significant threat to ecosystem services and exacerbated the ongoing climate change crisis. In this regard, Green-lean-six sigma (GLSS) is recognized as an emerging strategy to effectively address pressing environmental issues and conserve natural resources in manufacturing operations. While prior studies have documented the operational and environmental benefits of this strategy, there is a paucity of empirical research examining the role of the GLSS approach in fostering a circular economy in the manufacturing industry. Against this backdrop, this study aims to investigate the role of GLSS practices and factors supporting the circular economy in the flexible packaging (FP) industry. In particular, this process industry is selected as it faces several circular economy-related issues including natural resource depletion, lack of recycling, solid waste generation, air pollution, energy footprints, and marine pollution. A multiple-case study approach is used to obtain data through semi-structured interviews with senior corporate managers in New Zealand FP industry. Further, to corroborate the research findings, we have interviewed key informants including lean six sigma and environmental consultants. Building on the natural resource-based view (NRBV) and intellectual capital-based view (ICBV), our analysis reveals that GLSS practices related to waste elimination, pollution reduction, resource circulation, and environmental conservation enable FP manufacturing firms to transit towards the circular economy. The findings further demonstrate that supporting factors including strategic, technical, human resource, and external stakeholders contribute to GLSS adoption in promoting the circular economy concept. We argue that these findings can assist academia, practitioners, and policymakers in understanding the significance of GLSS practices and supporting factors for enabling circular economy in the process industry.

The interplay between firms’ capabilities and ownership in explaining environmental performance

PurposeThis study empirically assesses the effects of two key types of organizational and managerial capabilities—dynamic capabilities, and coordination and cohesion capabilities—on environmental performance, considering the moderating effect of family ownership. By applying the tenets of the natural resource-based view and the dynamic capabilities theory, this paper offers new insights into the topic.Design/methodology/approachThe article presents empirical evidence from a survey of 1,019 firms operating in the Spanish tourism sector analyzed using multiple linear regression.FindingsOverall, our results show that both dynamic capabilities and coordination and cohesion capabilities have direct and synergetic positive effects on environmental performance. In addition, the results confirm recent studies that report conflicting evidence on how family ownership affects environmental performance: family ownership is found to exert a distinct direct effect on environmental performance and on the development and application of the capabilities required to improve such performance.Originality/valueThis article sheds light on the conceptual frontiers between the different types of capabilities, as well as provides practical ways of measuring them. The article also brings evidence to bear on the debate concerning the direct and moderating effect that family ownership exerts on the relationship between both types of capabilities over environmental performance. The results of this analysis confirm the complexity of the family ownership effect on this aspect, and provide important insights for both business practitioners and academics.

Greening the manufacturing firms: do green supply chain management and organizational citizenship behavior influence firm performance?

The spontaneous organizational citizenship behavior towards environment (OCBE) of employees in the workplace is crucial to businesses' green development and low-carbon transition. However, it was not considered how such behavior could be encouraged for enhanced firm performance. From the natural resource-based view theory perspective, this study tests a model that investigates how green supply chain management practices, green culture, top management commitment, and OCBE, and influences firm performance. A structural equation model (SEM) was utilized to test the hypotheses using 600 survey questionnaires collected from manufacturing firms. The results show that green supply chain management indirectly affects firm performance through green culture and top management commitment. The results reveal that green culture and top management commitment positively and significantly mediate the relationship between green supply chain management and firm performance. Furthermore, the findings show that OCBE has a direct effect on firm performance. Moreover, the results highlight that OCBE has a positive moderating effect on the association between green supply chain management and firm performance. Finally, the study's findings and implications are disclosed to be useful policy instruments for organizations, administrations, and other stakeholders.

Examining the impact of Environmental Management Accounting practices and Green Transformational Leadership on Corporate Environmental Performance: The mediating role of Green Process Innovation

Based on the Natural Resource-Based View (NRBV), we examined the impact of Environmental Management Accounting and Green Transformational Leadership (GTL) on Corporate Environmental Performance (CEP) and we also examined the mediating role of Green Process Innovation (GPI). For this purpose, a survey technique was used to collect data from certified manufacturing setups. SPSS and PLS-SEM 3.0 were used to examine the hypotheses and the results of the study indicate that GTL has a direct significant impact and indirect impact through GPI on CEP. Results also depict that EMA also has a significant impact on CEP. Our study contributed theoretically to NRBV by contributing to the role of GPI in attaining environmental performance. The results of the study also have practical implications by indicating that managers and policymakers should employ practices of EMA along with GTL style to satisfy the environmental sustainability concerns of the stakeholders and sustain their competitive edge in the market.

Fostering green innovation: the roles of big data analytics capabilities and green supply chain integration

PurposeThe purpose of this study is to investigate the impact of big data (BD) analytics capabilities (BDACs) on green supply chain integration (GSCI) and green innovation (GI) in the context of a developing country, Jordan. In addition, the mediating effect of GSCI on the relationship between BDAC and GI is investigated.Design/methodology/approachData collection was carried out through a survey with 300 respondents from food and beverages manufacturing firms located in Jordan. Partial least squares-structural equation modeling (PLS-SEM) technique was applied to analyze the collected data. Natural resource-based view (NRBV) theory was the adopted theoretical lens for this study.FindingsThe results revealed that BDAC positively and significantly affects both GSCI and GI. In addition, the results demonstrated that GSCI positively and significantly affects GI. Further, it is also found that GSCI positively and significantly mediates the relationship between BDAC and GI.Originality/valueThis study developed a theoretical and empirical model to investigate the relationship between BDAC, GSCI and GI. This study offers new theoretical and managerial contributions that add value to the supply chain (SC) management literature by testing the mediation model in food and beverages manufacturing firms located in Jordan.

Examining the cultural differences in disseminating green supply chain in global subsidiaries

Multinational corporations (MNCs) are composed of subsidiaries with different cultures, and such culture differences between headquarters and subsidiaries have been conceptually proposed to negatively affect headquarters disseminating green initiatives to their subsidiaries. Despite MNCs vast size and cross-national-border influence on green innovation, very few empirical efforts have been devoted to examine the culture distance challenge. Drawing on Cultural Contingency Theory (CCT) and Natural Resource-Based View (NRBV), this research collected data from 141 senior managers in charge of green initiatives from subsidiaries in 39 countries of an MNC. We empirically investigate how national cultural distance influences subsidiaries’ green supply chain (GSCM) adoption levels, and how headquarters can alleviate such cultural influence. Our results show that, though cultural distance has a negative influence on headquarters-subsidiary green compatibility, we empirically validate that headquarters can overcome this cultural-distance problem by strategically using cultural similarity in response to each distinctive culture embedded in subsidiaries to strengthen a shared vision. Specifically, four cultural characteristics can strengthen the shared vision, including low individualism, low uncertainty avoidance, masculinity, and a long-term orientation. MNCs can eventually benefit from the cross-culture cooperation in disseminating GSCM if headquarters can choose a cultural mechanism that best suits local subsidiary.

Exploring corporate environmental ethics and green creativity as antecedents of green competitive advantage, sustainable production and financial performance: empirical evidence from manufacturing firms

PurposeEnvironmental degradation in emerging economies has induced stakeholder pressures on diverse firms to ensure sustainable business performance. Consequently, firms are adopting environmentally ethical cultures and reinforcing green creativity to satisfy stakeholders' environmental needs while attaining green competitive advantage, sustainable production and higher financial performance. The purpose of this study is to investigate whether corporate environmental ethics and green creativity serve as antecedents to higher competitiveness, sustainable production and financial performance, and also examine if green competitive advantage and sustainable production mediate the relationships between corporate environmental ethics, green creativity and financial performance in the context of an emerging economy.Design/methodology/approachThis study using a survey approach examined data from 290 manufacturing small and medium-sized enterprises. Data were analyzed and interpreted using SmartPLS 3.0 software, a variance-based structural equation modelling technique. This modelling technique was adopted due to its suitability for predictive research models.FindingsThe findings show that corporate environmental ethics and green creativity are critical antecedents to green competitive advantage, sustainable production and financial performance. The results connote that while corporate environmental ethics and green creativity directly and robustly influence green competitive advantage, sustainable production and financial performance, their effect on financial performance is strengthened via the indirect effects of green competitive advantage and sustainable production. Contrasting past findings, corporate environmental ethics negatively related to financial performance in this study context. The findings indicate that the integration of environmental ethics and green creativity can be a unique strategy for mitigating environmental negative risks while improving green competitive advantage, sustainable production and financial performance.Originality/valueThe study is among the few that draws insights from organizational ethics and the natural resource-based view (NRBV) to examine the interactions between corporate environmental ethics, green creativity, green competitive advantage, sustainable production and financial performance. Drawing insights from the findings, the study provides suggestions for managers, academicians, policymakers and governments as well as highlights implications and directions for future research.

Unveiling the Role of Green Logistics Management in Improving SMEs’ Sustainability Performance: Do Circular Economy Practices and Supply Chain Traceability Matter?

Sustainability has been widely recognized as a pervasive phenomenon that underlies the operations and performance of businesses. Recent research has examined the effect of green logistics management on the sustainability performance of businesses. However, we contend that the relationship between green logistics management and the sustainability performance of firms is not direct but mediated through circular economy practices. We analyze the direct and indirect effects of green logistics management on business sustainability performance via circular economy practices, using the natural resource-based view and resource dependence theory as our theoretical underpinnings. This study also assesses the moderating effect of supply chain traceability on the associations. Drawing upon the empirical data from 211 Bangladeshi manufacturing SMEs, we performed the PLS-SEM technique to assess the hypotheses. The findings show that green logistics management positively affects organizations’ circular economy practices and sustainability performance. Furthermore, supply chain traceability strongly affects SMEs’ circular economy practice but fails to moderate the linkage between green logistics and sustainability performance. Finally, circular economy practice mediates the linkage between SMEs’ green logistics management and sustainability performance. We also conducted the Sobel test to validate the mediation. Our findings advance the natural resource-based view and resource dependence theory while improving the understanding of green logistics management, circular economy practices, and sustainability performance. Given the dearth of literature assessing the complex interactions among these variables, our findings have pivotal implications.

Circular economy practices in SMEs: aligning model of green economic incentives and environmental commitment

PurposeThe present study aims to examine the relationship between green economic incentives (GEIs) and environmental commitment (EC) as drivers of the circular economy (CE) practices in small and medium enterprises (SMEs).Design/methodology/approachA cross-sectional study of 594 assistant managers and SME managers was used while data were analyzed through Smart PLS.FindingsThe results showed that GEIs positively affect the SMEs' EC and the CE practice model. Furthermore, EC is the mediator between GEIs and the three CE practices: internal environmental management, eco-design and corporate asset management and recovery (CAM&R).Practical implicationsThe present study provided a basis for understanding the relevance of SMEs' CE practices and designing a strategic plan for its implementation. Also, it provides insight into that collaboration between triple helix (the government, SMEs and the community) is needed in increasing environmental awareness toward sustainability.Originality/valueThis study enhanced the natural resource-based view (NRBV), describing the mechanisms that view GEIs and EC as pollution prevention in CE practice.

Environmentally Sustainable Business Practices in Micro, Small, and Medium Enterprises: A Sub-Saharan African Country Perspective

In line with the natural resource-based view, this paper explores the sustainable business practices (SBPs) of Ghanaian micro, small, and medium enterprises (MSMEs). Qualitatively, the study interviewed eight MSME operators and middle-level managers purposively to assess their use of SBPs and how it affects their businesses. Data collected were edited, coded, and grouped under themes based on the Braun and Clarke thematic framework. The study identified holistic environmental management, eco-preneurship, and regenerative practices as the environmental stewardship drivers among Ghanaian MSMEs. Also, integrated vision and strategy, process efficiency and resource optimization, and risk profiling drive process excellence. Finally, sustainability-focused leadership, internal advocates and change agents, and ongoing education and awareness as drivers for sustainability-oriented culture. The business practices of organizations have continually impacted the immediate environment within which they operate. Consequently, there is a clarion call for businesses to engage in SBPs to mitigate the effect of their operations on the environment. The study brings to bear the SBPs Ghanaian MSMEs are engaged in and how they affect their operations and survival, especially in this era of sustainability.

Sustainability dichotomies of used clothes supply chains: a critical review of key concerns and strategic resources

PurposeUsed clothes supply chains are becoming increasingly complex, fragmented and less transparent due to rising volumes of discarded clothes and its dispersed reverse logistics operations across the Global North (GN) and Global South (GS). While it has a promising impact on circular economy and international trade growth, increasing exports of used clothes and overflowing landfills raise some negative concerns on its overall sustainability. This paper addresses the dichotomy that exists in terms of interpreting the sustainability credentials of used clothes supply chains.Design/methodology/approachA systematic literature review was carried out and 55 articles were examined to identify the triple bottom line (TBL) sustainability impacts of used clothes supply chains. TBL sustainability issues were identified, reflected through the lens of natural resource-based view and interpreted in the form of propositions.FindingsThe paper pinpoints seven TBL sustainability concerns and prescribes three sets of strategic resources required in glocal used clothes supply chains for mitigating these. These are (1) slowing the supply chain by tackling poor quality, overproduction and oversupply issues, (2) improving logistics/supply chain infrastructure and ecosystem collaboration and (2) embedding transparent environmental, social and governance (ESG) measures taken by both value chain actors and regulatory bodies, for embracing system-level sustainable development.Originality/valueThis is one of the first studies to analyse TBL sustainability of glocal north–south used clothes supply chains. The study is unique in terms of its scope and contribution to the sustainable supply chain literature.

Determining Factors on Green Innovation Adoption: An Empirical Study in Brazilian Agribusiness Firms

Green innovation has become one of the mainstream concepts to address environmental issues. However, research on green innovation, especially at the firm level, is still evolving. Building upon the natural resource-based view (NRBV) and resource-based theory (RBT) lenses, this study proposes a research framework to explore determining factors of green innovation adoption (GIA) in the Brazilian cassava agribusiness sector. The research design from the semi-structured interviews method was employed in firms associated with ABAM (Brazilian Association of Starch and Cassava Producers) and SIMP (Union of Cassava Producers in Paraná). The findings suggest that behavioral factors for GIA, such as collaborative behaviors, productivity, safety behaviors, and green behaviors, are directly associated with other determining factors, such as knowledge, operating costs, stakeholder pressure, economic benefits, information access, customer assessment, organizational compatibility, and business support. Furthermore, GIA can lead to the effective implementation of sustainable practices to enhance economic performance and effective environmental management. The originality of this work stems from including behavioral factors for managers’ decision-making regarding resource allocation for GIA. It also includes a guideline to increase competitiveness in active green markets. It also contributes to a vision of GIA to evolve NRBV and RBT theories.

Do we need human capital heterogeneity for energy efficiency and innovativeness? Insights from European catching-up territories

This study brings a new perspective on the energy efficiency issue within the “catching-up territory” of Southern, Baltic, and Eastern European countries, where such analyses are missing. We create an original theory mix, combining theories of human capital, natural resource-based view, gender socialization, and upper echelons, to address three important research gaps: (i) the missing link regarding the effects of firm-specific human capital on energy efficiency; (ii) the interrelationship between energy efficiency and firms' innovativeness; and (iii) nonlinear relationships between firm-specific human capital, energy efficiency, and innovativeness. Moreover, we test whether energy efficiency has a mediating role within firms’ innovation processes. Our results confirm the key role experiences and skills play in energy efficiency and surprisingly refute the importance of gender diversity in this case. We also confirm the importance of environmental behaviour for innovativeness and reveal the mediating role of energy efficiency for process innovations. Finally, we propose several important implications for managers and policy makers.

An exploratory study of green‐lean‐six sigma motivators for environmental sustainability: Managerial insights from a developed and developing economy

AbstractIncreasingly, companies are embracing the green‐lean‐six sigma (GLSS) approach to managing their environmental impacts. Nevertheless, there is a paucity of studies that examined the underlying motivations behind GLSS deployment in manufacturing organizations. Accordingly, this study investigates the GLSS motivators in a developed and developing economy context through multiple case studies in which semi‐structured interviews are conducted with senior corporate managers in the flexible packaging manufacturing industry. Drawing on the natural resource‐based view (NRBV) and institutional theory‐based view (ITBV), our analysis revealed various operational, organizational, and environmental factors as internal motivators and factors related to the state, society, and market as external motivators. To the best of our knowledge, it is one of the early comparative studies investigating the GLSS motivators in both developed and developing economies, which can guide future researchers, practitioners, and policymakers in understanding the salient factors influencing the GLSS adoption for environmental sustainability.