31601453
Green Process Innovation and Innovation Benefit: The Mediating Effect of Firm Image
By evaluating green process innovation and its innovator’s benefit including short- and long-term dimensions, we first analyzed the relationship between green process innovation and its benefits. Second, we set up a regression model to test the hypotheses using 267 survey data from coal mining firms in China. Finally, we verified the positive relationship between green process innovation and its long-term benefit, and the non-significant relationship between green process innovation and its short-term benefit, and the mediating effect played by firm image in the long run.
154512904
ENVIRONMENTAL INNOVATION AND R&D COOPERATION: EMPIRICAL EVIDENCE FROM SPANISH MANUFACTURING FIRMS
This paper explores the relationship between firms’ R&D cooperation strategies and their propensity to introduce environmental innovations.
167523160
Necessity as the mother of ‘green’ inventions: Institutional pressures and environmental innovations
Drawing on institutional theory and innovation literature, we argue that greater regulatory and normative pressures concerning environmental issues positively influence companies' propensity to engage in environmental innovation. Analysis of environment-related patents of 326 publicly traded firms from polluting industries in the United States suggests that institutional pressures can trigger such innovation, especially in those firms displaying a greater deficiency gap (i.e., firms polluting relatively more than their industry peers). Moreover, we find that this effect is stronger when asset specificity is high, and that the availability of resources plays different roles depending on the type of pressures (regulatory vs. normative).Copyright © 2012 John Wiley & Sons, Ltd.
167525813
Environmental technologies and competitive advantage
In this decade and the coming century, the natural environment will be an important arena for economic, competition. Ecological issues regarding energy, natural resources, pollution, and waste offer both competitive opportunities and constraints, and are changing the competitive landscape in many industries. Corporations can gain competitive advantage by managing ecological variables. This paper explains the concept of ‘environmental technologies’ as a competitive force and a tool for competitive advantage. Environmental technologies offer a new substantive orientation and a management process for minimizing ecological impacts of economic production while enhancing Competitiveness of firms. The practical application of environmental technologies is illustrated using a mini case example of 3M Corporation. Strategic implications of environmental technologies for competitiveness are explored.
154510697
The Driver of Green Innovation and Green Image – Green Core Competence
This study proposed a novel construct – green core competence – to explore its positive effects on green innovation and green images of firms. The results showed that green core competences of firms were positively correlated to their green innovation performance and green images. In addition, this research also verified two types of green innovation performance had partial mediation effects between green core competences and green images of firms. Therefore, investment in the development of green core competence was helpful to businesses for the enhancement of their green innovation and green images. Furthermore, this study found that green core competence, two types of green innovation performance, and green images of medium & small enterprises (SMEs) were all significantly less than those of large enterprises in the information and electronics industry in Taiwan. Therefore, there was the advantage of firm size for the green core competence in this industry, and it was imperative for SMEs to develop and create their green core competences to strengthen their green innovation performance, and green images.
154081954
Green corporate image: moderating the connection between environmental product innovation and firm performance
The theoretical framework of the Natural Resource-Based View has been used to study how firms that develop environmentally proactive strategies achieve better performance. In particular, we have tried to introduce a novel perspective in the environmental management-firm performance debate by proposing that environmental product innovation and marketing capabilities can interact and achieve positive performance outcomes. By making the connection between product stewardship strategies and a shift in focus from processes to products, our study empirically analyzes the moderating role of the green corporate image in the relationship between environmental product innovations and firm performance in 157 Spanish metal firms. The results show the importance of efficiently managing the green image of the firm.
153618170
Integrating Suppliers into Green Product Innovation Development: an Empirical Case Study in the Semiconductor Industry
Green innovation has been recognized as one of the key factors to achieve environmental and economic success in markets. Understanding green product innovation development as a result of suppliers' involvement has become a strategic priority for academics and practitioners. This paper aims to explore and understand the role of suppliers in enhancing the manufacturer's ability to successfully carry out green innovation in product development. As a research methodology, a case study approach is employed. Primary data were collected through site visits and extensive interviews with corporate and plant management in Korea. Based on the Korean study, the paper presents following outcomes. First, there is a strong linkage between environmental compliance and green new product developments. Second, there is a strategically close relationship of environmental collaboration between suppliers and the buying company through technological integration. Finally, involving key suppliers in green new product development for environmentally demanding customers and markets can bring both environmental and commercial success. This research provides new insights on supplier involvement and green product innovation development in supply chain management. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.
153468292
Market demand, green product innovation, and firm performance: evidence from Vietnam motorcycle industry
This study examines how market demand affects green product innovation, and firm performance in the context of Vietnamese motorcycle industry. The paper seeks to answer two key questions: (a) how does market demand influence a firm’s green product innovation? and (b) how can green product innovation affects firm performance? This study collected a total of 208 valid questionnaires from four leading foreign motorcycle firms in Vietnam. The empirical findings show that market demand is positively correlated to both green product innovation and firm performance; while green product innovation performance is also positively correlated to firm performance. In addition, this study also categorizes three types of green product innovation and discusses their effects on market demand and firm performance.
157640089
Green Product Innovation in Manufacturing Firms: A Sustainability-Oriented Dynamic Capability Perspective
Despite environmental sustainability being identified as one of the key drivers of innovation, extant literature lacks a theoretically sound and empirically testable framework that can provide specific insights into green product innovation from a capability perspective. This study develops a theoretical framework from a sustainability‐oriented dynamic capability (SODC) perspective. We conceive SODCs as consisting of three underlying processes (external resource integration, internal resource integration, and resource building and reconfiguration) that influence the change/renewal of sustainability‐oriented ordinary capabilities (SOOCs) (green innovation capability and eco‐design capability). This study answers two key questions: which SODCs are needed to develop green innovation and eco‐design capabilities? Which of these capabilities lead to better market performance of green products? We test a structural model linking SODCs to market performance in 189 Italian manufacturing firms. First, we find that the nature of the SODC–performance link (direct or indirect) depends on the SODC type. Specifically, resource building and reconfiguration is the only SODC with a direct effect on market performance. Second, all three types of SODC affect the eco‐design capability, which mediates the link between SODCs and market performance. Third, we find that external resource integration is the only SODC affecting the green innovation capability, which mediates the link between external resource integration and market performance. Resource building and reconfiguration is the SODC with the overall (direct and indirect) highest impact on market performance. This study, among the first to consider capabilities for green product innovation under a dynamic capability perspective, provides implications for scholars, managers and policy makers. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment
16477972
The Effects of Slack Resources and Environmentalthreat on Product Exploration and Exploitation
In a U.S. sample of nonprofit professional theaters, we examine how slack resources interact with environmental threat appraisal to influence product exploration and exploitation. We find systematic variation depending on the extent to which a resource is rare and absorbed in operations, and the extent of perceived environmental threats. Absorbed, generic resources are associated with increased exploitation and decreased exploration. Unabsorbed resources, both generic and rare, result in higher exploration and lower exploitation, but only when perceived environmental threat is high. Overall, results reveal pragmatic decision making balancing the benefits of superior strategic position against the risks of jeopardizing viability.
167358584
A Natural-Resource-Based View of the Firm
Historically, management theory has ignored the constraints imposed by the biophysical (natural) environment. Building upon resource-based theory, this article attempts to fill this void by proposing a natural-resource-based view of the firm—a theory of competitive advantage based upon the firm's relationship to the natural environment. It is composed of three interconnected strategies: pollution prevention, product stewardship, and sustainable development. Propositions are advanced for each of these strategies regarding key resource requirements and their contributions to sustained competitive advantage.
153930127
AN EXAMINATION OF THE IMPACT OF POLLUTION PERFORMANCE ON ECONOMIC AND MARKET PERFORMANCE: PULP AND PAPER FIRMS
SUMMARY AND GONGLUSION This study has examined the association between pollution performance andeconomic and market performance of pulp and paper firms. The results indicatethat the economic performance is negatively associated with pollutionperformance over a short period of time. Results with regard to marketperformance indicate that the Price-Earnings ratio is also negatively associatedwith pollution performance.The results of this study provide weak evidence that firms with good pollutionperformance are not being viewed positively by the market because of thenegative association between pollution and economic performance. In orderto safeguard the public interest for a clean environment, strict pollutionstandards may be necessary to encourage management to invest in pollutionabatement activities.The results of this study, however, need to be interpreted with caution becauseof certain limitations inherent in the study. First, the pollution performanceindex developed in this study related to water pollution only. All CEP studiesincluded air pollution data also. Since air pollution data using the plant as apoint source are not available from the EPA or their state equivalents, thesecould not be included in the study. However, we do not believe that giventhe nature of the industry, the lack of air pollution data will greatly distortthe findings.Second, the pollution performance index may not truly reflect the pollutionperformance because of the difficulty in determining relative weights for eachpollutant. The consistent application of the methodology to all firms is, however,considered to reduce this weakness of the study.Third, the pollution reports filed by firms in the EPA may not truly refiectactual pollution performance. There may be a self-reporting bias. However,EPA inspectors' reports were also obtained for a number of plants and nosignificant differences were detected in inspectors's reports and firms' reports.Further studies on the subject are extremely desirable, especially fordeveloping a methodology to examine the association between pollution and
154824325
Complementarity between product and process innovation in a monopoly setting
In this article we study complementarity between market-enhancing product innovation and cost-reducing process innovation in a monopoly setting. First, we consider the possibility for a firm to alternatively invest only along one of the two directions and compare the incentives of process vs. product innovation. Then, we allow the firm to invest simultaneously in both activities, showing that both investment levels and profit are higher than in the case of individual investment. Thus, product and process innovations are complementary, and the firm always prefers the simultaneous adoption of both activities.
14375545
Effects of Green Innovation on Environmental and Corporate Performance: A Stakeholder Perspective
“Going green” has become an important environmental issue in contemporary business practice worldwide. This study examined the influence of a number of factors on green innovation and the consequences in terms of performance. The stakeholder theory was adopted to observe the effects of each stakeholder on the green innovation practices of companies and to determine how green innovation practices influence environmental and business performance. A research model with eight hypotheses was proposed to determine the associations between the variables of interest. An empirical survey was conducted of 202 Taiwanese service and manufacturing companies. The survey found that pressure from competitors and the government, along with employee conduct, all had significant and positive effects on green innovation practices. Additionally, a moderating effect of innovation orientation existed only in the relationship between green product innovation practices and employee conduct. This study not only provides a systematic way to analyze the effects of green innovation practices but also suggests the best means for companies to adopt green innovation practices.
34887253
The Business Case for Corporate Sustainability:: Literature Review and Research Options
In the last ten years, the notion of a ‘business case’ for corporate sustainability has increasingly been used by the corporate sector, environmental organizations, consultancies and so on, to seek justification for sustainability strategies within organizations. In this paper, we aim to systemize and assess existing research and tools related to this increasingly popular concept. We present a review of (1) theoretical frameworks, (2) instrumental studies aiming to either prove or disprove a hypothesized causal sequence between corporate social or environmental performance and financial performance, (3) descriptive studies examining manager’s actual perceptions and practices, and finally (4) tools. We identify a clearly insufficient understanding of manager’s key arguments or business logic for adopting corporate sustainability strategies (how ‘business cases’ are built, how effective they are and what barriers they face). We attribute this primarily to lack of descriptive research in these areas.
2955757
The Harm of Symbolic Actions and Green-Washing: Corporate Actions and Communications on Environmental Performance and Their Financial Implications
We examine over 100 top performing Canadian firms in visibly polluting industries as we seek to answer four research questions: What specific environmental issues are firms addressing? How do these issues differ between industries? Are both symbolic and substantive actions financially beneficial? Does green-washing, measured as the difference between symbolic and substantive action, and/or green-highlighting, measured as the combined effect of symbolic and substantive actions, pay? We find that substantive actions of environmental issues (green walk) neither harm nor benefit firms financially, but symbolic actions (green talk) are negatively related to financial performance. We also find that green-washing (discrepancy between green talk and green walk) has a negative effect on financial performance and green-highlighting (concentrated efforts of the talk and walk) has no effect on financial performance. In this article, we provide explanations of our findings and put forth future research directions.
153454167
Being ‘Green and Competitive’: The Impact of Environmental Actions and Collaborations on Firm Performance
In this paper, we seek to enhance the understanding of the link between environmental management and firm performance, so contributing to the debate of being “green and competitive”. Relying on the resource-based view, we study the effect of different environmental management capabilities on a firm's market and image performance. In particular, we analyze the capabilities to implement product and process-related environmental actions with different types of environmental focus (materials, energy, pollution) and the capabilities to develop environmental collaborations with different types of actors (both business actors and non-business actors). To this aim we conducted a survey on 122 Italian companies. Results show that market performance and image performance have partially different antecedents. Specifically, a firm's market performance is positively affected by the capabilities to implement environmental actions with a focus on energy and pollution and to develop environmental collaborations both with business and with non-business actors. On the other hand, a firm's image performance is positively affected by the capabilities to implement environmental actions with a focus on materials and to develop environmental collaborations with non-business actors. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
54678873
Environmental Policy, Innovation and Performance: New Insights on the Porter Hypothesis
Jaffe and Palmer (1997) present three distinct variants of the so- called Porter Hypothesis. The “weak” version of the hypothesis posits that environmental regulation will stimulate certain kinds of environmental innovations. The “narrow” version of the hypothesis asserts that flexible environmental policy regimes give firms greater incentive to innovate than prescriptive regulations, such as technology-based standards. Finally, the “strong” version posits that properly designed regulation may induce cost-saving innovation that more than compensates for the cost of compliance. In this paper, we test the significance of these different variants of the Porter Hypothesis using data on the four main elements of the hypothesised causality chain (environmental policy, research and development, environmental performance and commercial performance). The analysis is based upon a unique database which includes observations from approximately 4200 facilities in seven OECD countries. In general, we find strong support for the “weak” version, qualified support for the “narrow” version, and qualified support for the “strong” version as well.
19003205
ISO 14001 certification and financial performance: selection-effect versus treatment-effect
The paper explores the bi-directional relationship between ISO 14001 certification and financial performance with the aim of shedding light on whether better performance is due to the beneficial effects of ISO 14001 or due to selection-effects where better performance precedes accreditation. The study uses a five year longitudinal analysis to compare the financial performance of firms in Spain before and after certification. The results of a multivariate panel data analysis find that firms with better than average performance have a greater propensity to pursue accreditation but there is no evidence that improvements in performance follow certification. This suggests that the inference that environmental variables cause improved financial performance may be unwise in research studies that can only measure association.
154598288
Environmental Innovations and Firm Profitability: Unmasking the Porter Hypothesis
We examine impacts of different types of environmental innovations on firm profits. Following Porter’s (Sci Am 264(4):168, 1991) hypothesis that environmental regulation can improve firms’ competitiveness, we distinguish between regulation-induced and voluntary environmental innovations. We find that innovations which do not improve firms’ resource efficiency do not provide positive returns to profitability. However, innovations that increase a firm’s resource efficiency in terms of material or energy consumption per unit of output have a positive impact on profitability. This positive result holds for both regulation-induced and voluntary innovations, although the effect is greater for regulation-driven innovation. We conclude that the Porter hypothesis does not hold in general for its “strong” version, but depends on the type of environmental innovation. Our findings rest on firm-level data from the German part of the Community Innovation Survey 2008 (CIS 2008).
600126
A Contingent Resource-Based View of Proactive Corporate Environmental Strategy
We integrate perspectives from the literature on contingency, dynamic capabilities, and the natural resource-based view of the firm to propose how dimensions of the general competitive environment of a business will influence the development of a dynamic, proactive corporate strategy for managing the business–natural environment interface. We also explain how certain characteristics of the general business environment—uncertainty, complexity, and munificence—moderate the relationship between the dynamic capability of a proactive environmental strategy and competitive advantage. We conclude with a discussion of implications for research and practice.
168043745
Stakeholder influences on sustainability practices in the Canadian forest products industry
We examined how managers' perceptions of different types of stakeholder influences in the Canadian forestry industry affect the types of sustainability practices that their firms adopt. Both influences involving withholding of resources by social and ecological stakeholders and those involving directed usage of resources from economic stakeholders were found to drive such practices. We found that the industry and its stakeholders have moved beyond a focus on early stages of sustainability performance such as pollution control and eco-efficiency. However, more advanced practices, such as those involving the redefinition of business and industrial ecosystems where firms locate in a region so that they can exchange and utilize wastes generated by other firms, are in their infancy. Stakeholders and firms in the industry are focused on the intermediate sustainability phases involving recirculation of materials and redesign of processes including sustainable harvesting of lumber. Copyright © 2004 John Wiley & Sons, Ltd.
154818138
Does the development of environmental innovation require different resources? Evidence from Spanish manufacturing firms
In recent years, environmental innovations are getting increasingly at the center both of the scientific debate and of the policy-maker agenda. Adopting the resource-based view, this paper provides a comprehensive framework for understanding the specific role of – internal, external and hybrid – resources in the environmental innovation development. Using a dataset of 4829 Spanish manufacturing firms and estimating probit models, it is found that internal resources have greater importance for environmental innovations. Moreover, green innovators seem to be characterized by more intensive external relationships. For hybrid resources, acquisition of equipment but not of patents is more relevant. Finally, evidence suggest the relevance of complementing the analysis of the external factors triggering environmental innovations with those of the internal resources the firm has access to in order to fully understand and support the development of environmental innovations.
55248109
An Empirical Analysis of the Effects on Firms’ Economic Performance of Implementing Environmental Management Systems
This paper investigates whether environmental management system (EMS) implementation influences a firm’s value added, one of the indices of economic performance. Because it is expected that EMS implementation increases a firm’s value added through an increase in demand and an improvement in productivity, a simple model to identify how these effects influence a firm’s value added is developed and is empirically investigated using panel data for Japanese manufacturing firms in the period 1996–2007. The main findings are as follows. For the full sample, EMS implementation increases a firm’s value added through an increase in demand and improvement in productivity. Among these firms, however, the positive effect of the implementation through an increase in demand mainly exists for export-oriented firms. At the industry level, the effects of EMS implementation vary among different industries. These results empirically prove that there are plural paths for EMS implementation to improve a firm’s economic performance.
154061424
The link of environmental and economic performance: Drivers and limitations of sustainability integration
Combining stakeholder, resource based and institutional theories suggests that stakeholder demands affect the environmental and social activities of firms, which in turn influence various performance aspects. This paper tests if stakeholder demands are related to the integration of management activities within the firm, and if such integration is positively associated with economic and environmental performance dimensions, where especially for the latter empirical evidence is scarce and inconsistent. To address this gap, data from the manufacturing sector is used for analysing how stakeholder types associate with sustainability integration and economic and environmental performance. The analysis reveals better fit for a moderated structural equation model than a model with direct links between economic and environmental performance and shows that environmental performance is decoupled from integration. These findings suggest that resource based reasoning could be self-limiting in jointly improving environmental and economic performance.
16092927
Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of who and What Really Counts
Stakeholder theory has been a popular heuristic for describing the management environment for years, but it has not attained full theoretical status. Our aim in this article is to contribute to a theory of stakeholder identification and salience based on stakeholders possessing one or more of three relationship attributes: power, legitimacy, and urgency. By combining these attributes, we generate a typology of stakeholders, propositions concerning their salience to managers of the firm, and research and management implications.
55743056
Does It Pay to Be Green? A Systematic Overview
Executive Overview The conventional wisdom concerning environmental protection is that it comes at an additional cost imposed on firms, which may erode their global competitiveness. However, during the last decade, this paradigm has been challenged by a number of analysts (e.g., Porter & van der Linde, 1995), who have argued basically that improving a company' environmental performance can lead to better economic or financial performance, and not necessarily to an increase in cost. The aim of this paper is to review empirical evidence of improvement in both environmental and economic or financial performance. We systematically analyze the mechanism involved in each of the following channels of potential revenue increase or cost reduction owing to better environmental practices: (a) better access to certain markets; (b) differentiating products; (c) selling pollution-control technology; (d) risk management and relations with external stakeholders; (e) cost of material, energy, and services; (f) cost of cap...
143585204
Measuring Organizational Performance: Towards Methodological Best Practice
Organizational performance is one of the most important constructs in management research. Reviewing past studies reveals a multidimensional conceptualization of organizational performance related predominately to stakeholders, heterogeneous product market circumstances, and time. A review of the operationalization of performance highlights the limited effectiveness of commonly accepted measurement practices in tapping this multidimensionality. Addressing these findings requires researchers to (a) possess a strong theoretical rationale on the nature of performance (i.e., theory establishing which measures are appropriate to the research context) and (b) rely on strong theory as to the nature of measures (i.e., theory establishing which measures should be combined and the method for doing so). All management research on performance should explicitly address these two requirements. The authors conclude with a call for research that examines triangulation using multiple measures, longitudinal data and alternative methodological formulations as methods of appropriately aligning research contexts with the measurement of organizational performance.
153253893
Environmental Marketing: A Source of Reputational, Competitive, and Financial Advantage
Corporate reputation is an intangible asset that is related to marketing and financial performance. The social, economic, and global environment of the 1990'shas resulted in environmental performance becoming an increasingly important component of a company'sreputation. This paper explores the relationship between reputation, environmental performance, and financial performance, and looks at the contingencies that impact environmental policy making.
55415752
The Performance Implications of Timing of Entry and Involvement in Multi-Partner Alliances
We examined the distribution of benefits to partners in multipartner alliances by concentrating on dynamics of partner entry and involvement. Testing hypotheses in the Wi-Fi Alliance, we observed heterogeneity of benefits. In particular, the extent of organizational involvement in this alliance enhanced partners' reputation and market success with related product introductions but reduced their productivity. Participation in competing alliances enhanced productivity and market success despite potential efficiency losses. Finally, early alliance entrants gained market success, and both early and late entrants were more productive than intermediate entrants. These findings illuminate multipartner alliance complexity and disparity between common and private benefits.
166793821
When do firms change technology-sourcing vehicles? The role of poor innovative performance and financial slack
This paper examines the adjustments firms make to the composition of their portfolios of technology-sourcing vehicles (i.e., alliance, acquisition, or go-it-alone) in response to poor innovative performance. We advance a behavioral perspective on the make/buy/ally question, suggesting that differences in financial slack will generate different portfolio decisions. Specifically, we posit that firms with greater levels of financial slack are more likely to respond to poor innovative performance by opting for (1) greater vehicle diversification, and (2) new sourcing vehicles, while firms with less financial slack will respond by (1) downscoping their portfolio of sourcing vehicles, and (2) reverting to more familiar vehicles. We find support for our predictions using extensive data from the population of U.S. public pharmaceutical firms from 1992 to 2006.
169778181
THE EVOLVING VALUE OF FOREIGN PARTNERSHIPS IN TRANSITIONING ECONOMIES.
Through studying joint ventures during the early (1993) and late phases (2001) of Hungary’s economic transition to market economy, we demonstrate how institutional and economic transformation alters foreign parents’ roles in the success of joint ventures. Foreign parent decision influence and resource provision affected market performance and knowledge acquisition differently in the two phases. We conjecture that the value of foreign partner involvement in a transition economy depends in part on the maturity of the transition.
154726664
Environmental and Firm Level Influences on Inter‐Organizational Trust and SME Performance
We investigate the effects of focal firm knowledge intensity and uncertainty on inter‐organizational trust and subsequent performance of small and medium size enterprises (SMEs). We integrate the trust literature with transaction cost literature as both of these offer partial explanations of the dynamics of inter‐organizational trust in the context of an SME. We propose that knowledge intensity of the focal firm will have a positive relationship while uncertainty will have a negative relationship with inter‐organizational trust in an exchange relationship. Further, we propose a positive relationship between trust and SME performance, which will be contingent on the level of external and internal uncertainty faced by the focal firm. Empirical evidence, based on the survey data of 565 German SMEs, mostly supports our arguments.
154295539
Assessing the sustainability performances of industries
Business sustainability entails the incorporation of the objectives of sustainable development, namely social equity, economic efficiency and environmental performance, into a company's operational practices. Companies that compete globally are increasingly required to commit to and report on the overall sustainability performances of operational initiatives. The current indicator frameworks that are available to measure overall business sustainability do not effectively address all aspects of sustainability at operational level, especially in developing countries such as South Africa. Social criteria, specifically, do not receive due considerations. This article proposes a new framework to assess the sustainability of operations in the manufacturing sector.
153738448
Regulatory Stringency, Green Production Offsets and Organizations' Financial Performance
Some scholars have argued that environmental regulatory pressures constrain organizations' financial opportunities, while others maintain that environmental regulations can spur product and technology innovations and encourage greater operational efficiencies. Advocates on both sides have evidence in support of their positions. However, considering both perspectives in tandem and recognizing that other factors may be associated with improved financial performance, we may find that neither position is valid, or that both are. Relying on data for manufacturing facilities in seven countries, this study shows that more stringent environmental policy regimes are related to diminished firm profits. Yet organizations that are motivated by a green production focus—defined as enhancing internal efficiencies and new product and technology development—are more likely to improve their environmental performance. They also demonstrate a greater probability of benefiting financially, thereby offsetting the cost of regulation or accruing a net gain.
16093590
Regulatory Uncertainty and Corporate Responses to Environmental Protection in China
This article analyzes the closing gap between regulation and enforcement of environmental protection in China and explores its implications for doing business there. It identifies three major dimensions that characterize change in regulatory systems: priorities and incentives, bureaucratic alignment, and transparency and monitoring. Using these dimensions, it describes the mechanisms that characterized China's prior period where enforcement of environmental protection was decoupled from regulation. Regulation and enforcement are becoming re-aligned. This is due to a change in national development strategy, reorganization of the bureaucracy, and increasing monitoring from both the government and general public. To address these changes, firms need to embrace environmental innovation and integrate local and global standards. They should also be more transparent and compete on reputation.
32742208
China’s Industrial Total-Factor Energy Productivity Growth at Sub-Industry Level: A Two-Step Stochastic Metafrontier Malmquist Index Approach
Under the concept of metafrontier, technology gap ratio is alternatively interpreted as potential energy efficiency. Combined with Malmquist index framework and Shephard energy distance function, we then develop a metafrontier Malmquist energy productivity index to analyze the total-factor energy productivity growth with four specific components: groupfrontier efficiency change index, groupfrontier technological change index, efficiency catch-up index and technological catch-up index. Methodologically, a newly developed two-step stochastic metafrontier analysis is applied to address the potentially biased estimation problems in the previous mixed approach. This analytical framework is used to evaluate the energy productivity growth of China’s 35 sub-industries in industrial sector from 2001 to 2015. The main empirical results show that: (1) In terms of cumulative metafrontier Malmquist energy productivity growth, China’s overall industry has witnessed a 25% growth and a U-shaped growing trend bottoming out in 2006; meanwhile, 19 sub-industries have suffered an energy productivity loss and the remaining 16 sub-industries have experienced an energy productivity gain. (2) From the technology heterogeneity perspective, light industry outperforms heavy industry in metafrontier Malmquist energy productivity growth, while the intra-group and inter-group energy productivity develops roughly in balance for overall industry. (3) The change of metafrontier Malmquist energy productivity is mainly driven by technological change components rather than efficiency change components. On average, groupfrontier technological change makes the biggest contribution to energy productivity growth, followed by technological catch-up, then efficiency catch-up, and groupfrontier efficiency change is last. (4) The metafrontier Malmquist energy productivity growth has shown a significant convergence in heavy industry and light industry, as well as overall industry.
154781280
A performance evaluation of the energy, environmental, and economic efficiency and productivity in China: An application of global data envelopment analysis
The current mode of economic development in China is typified by high growth, high energy consumption, and high pollution characteristics and this has caused great stress on both energy consumption and the environment. This paper focuses on a historical analysis of China’s energy, environmental, and economic (‘E3’) efficiency and the sources of E3 productivity growth therein. A developed slacks-based measure is utilized to evaluate the performance of E3 efficiency and decompose the performance fluctuations into three components: energy, economy, and environmental efficiency fluctuations. By applying a method based on global data envelopment analysis, we also analyze the key factors responsible for the change in E3 productivity during 2002–11 from the point of view of technical progress, production scale, and management level. The results show that China performs well on the economic front, while the energy and environmental performances are not optimistic. Fortunately, energy and environmental efficiency have gradually improved in recent years. Further analysis shows that the trend in E3 productivity in China has begun to follow an ascending path. Technical progress is the most powerful contributor to China’s E3 productivity growth, while falling scale and management efficiency are the two main obstacles preventing improvement in E3 productivity.
7088871
Market–political ambidexterity during institutional transitions
In emerging economies undergoing institutional transitions, while market forces have grown, government influences are not necessarily in decline. Therefore, in addition to market capabilities, firms also need to develop political and nonmarket capabilities. We argue that firms grow during institutional transitions by developing a set of capabilities that we label market-political ambidexterity to embrace both governments and markets. Viewing market-political ambidexterity as a bundle of dynamic capabilities, we contribute to the literature by articulating this important but previously underexplored construct. [Key words] Ambidexterity, market-political ambidexterity, institutional transitions, emerging economies
154941471
The Effects of business and Political Ties on Firm Performance: Evidence from China.
Abstract Despite increasing attention to the role of social ties in emerging economies, few studies have explicitly distinguished the differential roles of business versus political ties. Drawing on relational governance and institutional theories, this study offers a contingent view of business and political ties in China. The findings from a survey of 241 Chinese firms indicate that business ties have a stronger positive effect on performance than political ties, and both effects depend on institutional and market environments. Business ties are more beneficial when legal enforcement is inefficient and technology is changing rapidly, whereas political ties lead to greater performance when general government support is weak and technological turbulence is low. These findings indicate that firms operating in China should be cautious in their use of business and political ties and adapt their tie utilization to changing institutional and market environments.
167718690
Green marketing strategies: an examination of stakeholders and the opportunities they present
As green marketing strategies become increasingly more important to firms adhering to a triple-bottom line performance evaluation, the present research seeks to better understand the role of “green” as a marketing strategy. Through an integration of the marketing, management, and operations literatures, an investigative framework is generated that identifies the various stakeholders potentially impacted through the environmentally friendly efforts of a firm. Specifically, the inter-connected nature of the core business disciplines of marketing, management (both strategy and human resources), and operations are examined as controllable functions within an organization from which strategies can be enacted to affect a firm’s stakeholders. The prior research in these areas is examined to identify potential research opportunities in marketing while also offering a series of representative research questions that can help guide future research in marketing.
144408663
Pollution Reduction Preferences of U.S. Environmental Managers: Applying Ajzen'S Theory of Planned Behavior
We modified Ajzen's theory of planned behavior to analyze the behavioral preferences of environmental managers. We used structural equation analysis to link the source reduction preferences of 295 ...
145112540
The Future of Resource-Based Theory
Since the 1991 publication of the first Journal of Management special issue devoted to resource-based inquiry, resource-based theory (RBT) has evolved from a nascent, upstart perspective to one of the most prominent and powerful theories for understanding organizations. Indeed, 20 years after that landmark issue, RBT appears to have reached maturity as a theory. One implication of this maturity is that RBT lies at a critical juncture, one that will be followed either by revitalization of the theory or by its decline. In this introductory article, the authors provide a brief overview of the contributions provided by the commentaries and articles contained in this third Journal of Management special issue on RBT. These contributions center on five themes: interlinkages with other perspectives, processes of resource acquisition and development, the micro-foundations of RBT, RBT and sustainability, and method and measurement issues. Their view is that the commentaries and articles collectively offer a foundation for extending RBT in meaningful new directions and steering clear of decline. They also offer their thoughts about some key opportunities within each of the themes for further revitalizing research involving the RBT.
57570880
Does the Market Value Environmental Performance?
Previous studies that attempt to relate environmental to financial performance have often led to conflicting results due to small samples and subjective environmental performance criteria. We report on a study that relates the market value of firms in the S&P 500 to objective measures of their environmental performance. After controlling for variables traditionally thought to explain firm-level financial performance, we find that bad environmental performance is negatively correlated with the intangible asset value of firms. The average intangible liability for firms in our sample is 380 millionapproximately 9 of the replacement value of tangible assets. We conclude that legally emitted toxic chemicals have a significant effect on the intangible asset value of publicly traded companies. A 10 reduction in emissions of toxic chemicals results in a 34 million increase in market value. The magnitude of these effects varies across industries, with larger losses accruing to the traditionally polluting industries.
7960267
A new insight into environmental innovation: : Does the maturity of environmental management systems matter?
Technological innovation has recently become more essential than ever. To examine the factors that might induce environmental technological innovation, we focus on ISO 14001, a voluntary approach to environmental management, and scrutinise how the proficiency or maturity level of ISO 14001 in facilities influences environment-related research and development (R&D) expenditures that promote environmental technological innovation. We measure the maturity level based on the length of time since a given facility adopted ISO 14001. Using Japanese facility-level data from “Environmental Policy Tools and Firm-Level Management and Practices: An International Survey” (OECD Survey), we estimate two Tobit models by addressing an endogeneity issue in ISO 14001. The estimation results provide empirical evidence that as the ISO 14001 is improved in facilities, those facilities are likely to spend more on environmental R&D. The facility age and market concentration also positively affect environmental R&D. These findings suggest that the maturity level of ISO 14001 is an important factor influencing the investment in environmental R&D.
197652997
Heuristics and Biases: The Psychology of Intuitive Judgment
A review is presented of the book “Heuristics and Biases: The Psychology of Intuitive Judgment,” edited by Thomas Gilovich, Dale Griffin, and Daniel Kahneman.
146265879
On the validity of subjective measures of company performance
Subjective measures of company performance are widely used in research and typically are interpreted as equivalent to objective measures. Yet, the assumption of equivalence is open to challenge. We compared the use of both types of measure in 3 separate samples. Findings were consistent in showing that: (a) subjective and objective measures of company performance were positively associated (convergent validity); (b) those relationships were stronger than those between measures of differing aspects of performance using the same method (discriminant validity); and (c) the relationships of subjective and objective company performance measures with a range of independent variables were equivalent (construct validity).
145690649
Mistaken Perceptions: Cases and Consequences
Mezias and Starbuck (2003) review previous work and report striking new evidence indicating that managers can be quite mistaken in their perceptions regarding some matters, even matters quite close to their jobs. This is reminiscent of much evidence on politicians and ordinary citizens that generally show a weak grip on basic facts. In assessing how much difference this weakness makes, it is useful to distinguish among four perspectives on managers as: (i) informants for academic research; (ii) performers of their normal work; (iii) problem-solvers in novel situations; (iv) strategic thinkers. Mezias and Starbuck's results suggest a negative assessment on (i) and (iii), but are less clearly relevant on (ii); some open questions regarding (iv) are put forward.
145740592
Self-Reports in Organizational Research: Problems and Prospects
Self-reports figure prominently in organizational and management research, but there are several problems associated with their use. This article identifies six categories of self-reports and discusses such problems as common method variance, the consistency motif, and social desirability. Statistical and post hoc remedies and some procedural methods for dealing with artifactual bias are presented and evaluated. Recommendations for future research are also offered.
154955344
Environmental proactivity and business performance: an empirical analysis
This paper analyses the relationship between environmental proactivity and business performance on a sample of 186 industrial companies. This relationship is approached by studying a bundle of relationships between different dimensions or manifestations of environmental proactivity and different measures of business performance. The analysis in part supports the idea that environmental management can bring about competitive opportunities for companies, although it also reveals that some environmental practices produce negative effects. It is thus concluded that there is no one single response for the question of whether environmental proactivity has positive effects on business performance and that this relationship must be disaggregated into more specific and concrete relationships.
106505484
Misunderstanding the Nature of Company Performance: The Halo Effect and other Business Delusions
Much popular thinking in the business world is shaped by delusions—fundamental errors of judgment that distort our understanding about company performance. One of the most important delusions is the halo effect, which is the tendency to attribute many positive features to successful companies, and to make the opposite attributions when companies falter. The halo effect, in turn, contaminates the data used in many largescale studies of company performance, including some of the most popular studies of recent years. The result is a misplaced belief that companies can follow formulas to achieve high performance, when in fact performance is better understood as relative, not absolute. To achieve high performance, companies must do more than follow formulas—they must differentiate themselves from rivals by making choices under conditions of uncertainty.
73695245
Correcting for Endogeneity in Strategic Management Research
The field of strategic management is predicated fundamentally on the idea that managements' decisions are endogenous to their expected performance implications. Yet, based on a review of more than a decade of empirical research in the Strategic Management Journal, we find that few papers econometrically correct for such endogeneity. In response, we now describe the endogeneity problem for cross-sectional and panel data, referring specifically to management's choice among discrete strategies with continuous performance outcomes. We then present readily implementable econometric methods to correct for endogeneity and, when feasible, provide STATA code to ease implementation. We also discuss extensions and nuances of these models that are sometimes difficult to decipher in more standard treatments. These extensions are not typically discussed in the strategy literature, but they are, in fact, highly pertinent to empirical strategic management research.
1925599
The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations.
In this article, we attempt to distinguish between the properties of moderator and mediator variables at a number of levels. First, we seek to make theorists and researchers aware of the importance of not using the terms moderator and mediator interchangeably by carefully elaborating, both conceptually and strategically, the many ways in which moderators and mediators differ. We then go beyond this largely pedagogical function and delineate the conceptual and strategic implications of making use of such distinctions with regard to a wide range of phenomena, including control and stress, attitudes, and personality traits. We also provide a specific compendium of analytic procedures appropriate for making the most effective use of the moderator and mediator distinction, both separately and in terms of a broader causal system that includes both moderators and mediators.
18337892
Mediators, Moderators, and Tests for Mediation.
Abstract : The following points are developed. First, mediation relations are generally thought of in causal terms. Influences of an antecedent are transmitted to a consequence through an intervening mediator. Second, mediation relations may assume a number of functional forms, including nonadditive, nonlinear, and nonrecursive forms. Special attention is given to nonadditive forms, or moderated mediation, where it is shown that while mediation and moderation are distinguishable processes, a particular variable may be both a mediator and a moderator within a single set of functional relations. Third, current procedures for testing mediation relations in industrial and organizational psychology need to be updated because these procedures often involve a dubious interplay between exploratory (correlational) statistical tests and causal inference. It is suggested that no middle ground exists between exploratory and confirmatory (causal) analysis, and that attempts to explain how mediation processes occur require well-specified causal models. Given such models, confirmatory analytic techniques furnish the more informative tests of mediation. (Author)
167423857
Organizational Responses to Environmental Demands: Opening the Black Box
This article combines new and old institutionalism to explain differences in organizational strategies. We propose that differences in the influence of corporate departments lead their facilities to prioritize different external pressures and thus adopt different management practices. Specifically, we argue that external constituents—including customers, regulators, legislators, local communities, and environmental activist organizations—who interact with influential corporate departments are more likely to affect facility managers' decisions. As a result, managers of facilities that are subjected to comparable institutional pressures adopt distinct sets of management practices that appease different external constituents. We test our framework in the context of the adoption of environmental management practices using an original survey and archival data obtained for nearly 500 facilities. We find support for these hypotheses. Copyright © 2008 John Wiley & Sons, Ltd.
168111235
Stakeholder Pressures And Environmental Performance
We examine the connection between the internal heterogeneity of stakeholder groups and the resource dependence dynamics characterizing their relationships with firms. Empirically, we test how this ...
167466397
What drives eco-innovation? A review of an emerging literature
Abstract This paper provides an overview of the emerging literature on the drivers of eco-innovation. Its main contribution lies in separating the drivers associated with the phases of development and diffusion and in identifying particular drivers based on different eco-innovation types. We find that research in this area primarily adopts the resource-based and institutional theories as its theoretical foundations and that the prevailing effects identified are those of regulations and market pull factors. Moreover, product eco-innovation, process eco-innovation, organizational eco-innovation, and environmental R&D investments seem to be driven by common drivers, such as regulations, market pull factors, EMS, and cost savings, as well as to be positively associated with company size. The majority of the studies in our literature review employ a quantitative research methodology and focus on the diffusion stage of eco-innovation. We end with providing a synthesis of drivers of companies’ eco-innovation and directions for future research.