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Business Strategy and the Environment

Impact factor: 3.236 Print ISSN: 0964-4733 Online ISSN: 1099-0836 Publisher: Wiley Blackwell (John Wiley & Sons)

Subjects: Business, Environmental Studies, Management

Most recent papers:

  • Measures for Sustainable Investment Decisions and Business Strategy – A Triple Bottom Line Approach.
    Maite Cubas‐Díaz, Miguel Ángel Martínez Sedano.
    Business Strategy and the Environment. October 19, 2017
    Traditionally, most investors have only taken economic variables (profitability and risk) into account when making investment decisions. In this paper we propose two measures, the Relative Sustainable Performance Measure (RSPM) and the Measure of Commitment‐failure (MC), that permit sustainable decision making, which takes environmental and social variables into consideration in addition to the economic variables, for both investors and companies themselves. This makes a triple bottom line (TBL) approach to investment decision making possible. We apply our measures to the worldwide chemical sector and validate them. Moreover, we propose a 2D graphical sustainability analysis, which is simple and easy for investors to understand when making investment decisions and can be used if they are concerned about environmental and social matters. It also enables companies to analyse their sustainability performance and adapt their business plans accordingly. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    October 19, 2017   doi: 10.1002/bse.1980   open full text
  • Does the Eco‐Management and Audit Scheme Foster Innovation in European Firms?
    Fabio Montobbio, Ilaria Solito.
    Business Strategy and the Environment. October 19, 2017
    This paper studies whether environmental management systems can spur eco‐innovation, analyzing EMAS (Eco‐Management and Audit Scheme) adoption and patented innovations (at the European Patent Office) at firm level. It uses an original panel database of 30 439 European firms belonging to all sectors from 2003 to 2012. An original instrumental variable is implemented to control for potential endogeneity. The analysis reveals that EMAS adoption is conducive to more innovation at the firm level. The results vary across countries and sectors. In particular, EMAS is positively related to green patents for medium and low technology manufacturing. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    October 19, 2017   doi: 10.1002/bse.1986   open full text
  • Routine Rigidity and Environmental Sustainability: Why Rational Innovations are Regularly Ignored.
    Kenneth Dooley.
    Business Strategy and the Environment. October 12, 2017
    Rigidities describe the sluggishness of an organization's response in the face of discontinuous external change, and routine rigidity is the failure to change the organization's processes. This article aims to provide empirical evidence that substantiates the relevance of routine rigidity in the discussion on environmental sustainability. A qualitative approach employs a logic model to analyse two sequences of events and tracks the implementation of innovations that had been overlooked for some time. The evidence shows that the selected organizational innovations were previously inhibited by a failure to change the organization's formal processes and informal cultural norms. This is especially true of innovations that altered the daily routines of the focal firm's employees and of innovations that potentially alienated customers. The characteristics of the innovations (high impact and low barrier to implementation) indicate that firms are now less able to justify inaction through the traditional barriers of environmentally focused innovation. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    October 12, 2017   doi: 10.1002/bse.1984   open full text
  • Market Orientation and FIRMS' Environmental Innovation: The Moderating Role of Environmental Attitude.
    Zhongju Liao.
    Business Strategy and the Environment. October 11, 2017
    Drawing on market orientation theory, innovation theory and the theory of reasoned action, this paper integrates market orientation, environmental attitude and firms' environmental innovation into a model to establish a relationship among these three variables. By taking 247 manufacturing firms in China as the research sample and by analyzing the data using SPSS19.0, we found that customer and competitor orientation have a significant and positive impact on firms' environmental innovation, while the effect of inter‐functional coordination is not significant. Furthermore, environmental attitude plays a positive moderating role between customer orientation and firms' environmental innovation, as well as between competitor orientation and firms' environmental innovation. Finally, the results of the study are discussed, and the theoretical and practical significance of this study is clarified further. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    October 11, 2017   doi: 10.1002/bse.1988   open full text
  • Institutional Pressures and Environmental Management Practices: The Moderating Effects of Environmental Commitment and Resource Availability.
    Shanyong Wang, Jun Li, Dingtao Zhao.
    Business Strategy and the Environment. September 12, 2017
    With the deterioration of the environment and the shortage of natural resources, firms are facing increasing pressures to implement environmental management practices in their daily operation management. Drawing on institutional theory and environmental management literatures, this research tries to explore how institutional pressures motivate firms to implement environmental management practices, and how such effects are moderated by firms' environmental commitment and resource availability. The results of a survey of 188 Chinese firms suggest that regulatory pressures and normative pressures are positively and significantly related to firms' propensity to implement environmental management practices. Moreover, the results indicate that firms' environmental commitment positively moderates the relationships between institutional pressures and environmental management practices, while firms' resource availability plays different roles depending on the types of pressure (regulatory or normative pressures). Implications and suggestions for future research are provided. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    September 12, 2017   doi: 10.1002/bse.1983   open full text
  • Substantive or Symbolic Environmental Strategies? Effects of External and Internal Normative Stakeholder Pressures.
    David G Hyatt, Nicholas Berente.
    Business Strategy and the Environment. August 28, 2017
    Different forms of stakeholder pressures drive different environmental strategies in organizations. This article differentiates between internal and external normative stakeholder pressures to test their potentially unique effects on environmental strategies. The findings suggest that internal, normative stakeholder pressures primarily drive substantive commitments to environmental practices, reflecting an internalized, voluntary commitment to the natural environment and dedication to environmental leadership by the firm. External, normative pressures instead primarily drive symbolic commitments to environmental practices, aimed at managing the image of the organization to establish and reinforce an appearance of commitment to the natural environment. This novel perspective accounts for the institutionally plural contexts of organizations and their environments, in which internal pressures directly drive substantive environmental commitments and external pressures drive symbolic responses. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    August 28, 2017   doi: 10.1002/bse.1979   open full text
  • Green Product Development and Product Portfolio Management: Empirical Evidence from an Emerging Economy.
    Daniel Jugend, Joao Victor Rojas Luiz, Charbel Jose Chiappetta Jabbour, Sérgio Luis Silva, Ana Beatriz Lopes de Sousa Jabbour, Manoel Henrique Salgado.
    Business Strategy and the Environment. August 28, 2017
    Few studies have explored the relationship between green products development (GPD) and product portfolio management (PPM). When considering evidence from emerging economies, the knowledge gap is even deeper. Consequently, the objective of this work is to analyze how green and traditional practices of new product development (NPD) influence product portfolio and NPD performance. In addition, we explore how GPD opens new markets and technology opportunities. The empirical evidence is based on a sample of firms that are developing products and belong to innovative industrial sectors in Brazil. In general, the framework developed and tested in this research indicates the following: (i) the adoption of GPD practices significantly influences product portfolio performance; (ii) the adoption of GPD practices tends to generate positive results with regard to obtaining technological and market opportunities; (iii) the adoption of traditional PPM practices influences the dependent factors. Unexpectedly, correlations between a firm's size or age and its performance were not confirmed. This is the first empirical evidence relating GPD, PPM, and market and technology opportunities in Brazil. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    August 28, 2017   doi: 10.1002/bse.1977   open full text
  • Corporate Carbon and Financial Performance: The Role of Emission Reductions.
    Stefan Lewandowski.
    Business Strategy and the Environment. August 22, 2017
    This article uses econometric techniques to examine the effect of corporate carbon performance on corporate financial performance. I extend the existing literature in this research field by differentiating between two measurement perspectives: carbon performance expressed as annually reported carbon dioxide (CO2) emission equivalents and improvements in carbon performance over time. Thereby, the article re‐addresses the research question ‘when and how does it pay to be green?’ in the context of carbon emissions and climate change mitigation. Using a nonlinear modeling technique, the findings indicate that it pays to be green for companies with superior carbon performance but not for companies with inferior carbon performance. The results also show that carbon emission mitigation is linearly and significantly positive related to return on sales (ROS) but negatively related to Tobin's q. These contradictory findings help us to understand why – in spite of growing regulatory pressure – companies have been slow to respond with effective action to tackle climate change beyond marginal efficiency improvements that correspond to ‘low‐hanging fruits’. The empirical analysis is based on an unbalanced sample of 7625 firm‐year observations covering carbon emission data (Scope 1 and Scope 2) for 1640 international firms from 2003 to 2015. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    August 22, 2017   doi: 10.1002/bse.1978   open full text
  • What Drives Green Product Development and How do Different Antecedents Affect Market Performance? A Survey of Italian Companies with Eco‐Labels.
    Rosa Maria Dangelico.
    Business Strategy and the Environment. July 21, 2017
    Green products can play a key role in the achievement of sustainable development goals. Through a survey of 188 Italian companies with eco‐labeled green products, this study aims at understanding the relative importance of several motivations to develop green products, the influence of different motivations and firm characteristics on green product features (radicalness and differentiation), and which factors affect market performance of green products. This study reports a ranking of 49 motivations, highlighting that the most relevant are related to the prospect of market benefits. Results also show that product radicalness and differentiation have partially different antecedents in terms of motivations, while being a family firm positively influences only product differentiation. With regards to factors affecting market performance of green products, prospect of market benefits, availability of new technologies, firm foreign ownership, product radicalness and differentiation show a positive influence, while firm age displays a negative effect. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    July 21, 2017   doi: 10.1002/bse.1975   open full text
  • Does Financial Development Affect Environmental Degradation? Evidence from the OECD Countries.
    George E. Halkos, Michael L. Polemis.
    Business Strategy and the Environment. July 21, 2017
    In this study, building a simple model that incorporates static and dynamic elements, the relationship of financial development and economic growth to environmental degradation is investigated together with the validation of the Environmental Kuznets Curve (EKC) hypothesis. Our analysis is based on an unbalanced panel data set covering the OECD countries over the period 1970–2014. Our approach thoroughly accounts for the presence of cross‐sectional dependence between the sample variables and utilizes second generation panel unit root tests in order to investigate possible cointegration relationships. The empirical findings do indicate that local (NOx per capita emissions) and global (CO2 per capita emissions) pollutants redefine the EKC hypothesis when we account for the presence of financial development indicators. Specifically, in the case of global pollution an N‐shape relationship is evident in both static and dynamic frameworks, with a very slow adjustment. Lastly, our study calls for a strengthening of the effectiveness of environmental degradation policies by ensuring sustainability of the OECD banking system in order to drastically reduce emissions. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    July 21, 2017   doi: 10.1002/bse.1976   open full text
  • Mindfulness‐based Business Strategies and the Environment.

    Business Strategy and the Environment. July 11, 2017
    No abstract is available for this article.
    July 11, 2017   doi: 10.1002/bse.1972   open full text
  • The Power of Stakeholders' Voice: The Effects of Social Media Activism on Stock Markets.
    Pablo Gomez‐Carrasco, Giovanna Michelon.
    Business Strategy and the Environment. July 03, 2017
    Building on social movement theory, this study assesses the influence of social media activism on the stock market performance of targeted firms. We focus on information published on Twitter by two critical stakeholders: consumer associations and trade unions. To the extent that social media represent a valid medium to mobilize stakeholders' activism, protests on Twitter may damage firm reputation, leading to capital market reactions. Using a corpus of over 1.5 million tweets referring to Spanish listed banks, we study the impact of activism by looking at targeted firms' abnormal variations in price and trading volume. Our findings suggest that the Twitter activism of key stakeholders has a significant impact on investors' decisions. Further, our empirical analyses indicate that the mechanisms affecting investors' behavior differ depending on the characteristics of the stakeholder group. Hence, this study contributes to understanding how social movements influence corporate behavior via social media. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    July 03, 2017   doi: 10.1002/bse.1973   open full text
  • How Does Open Innovation Modify the Relationship between Environmental Regulations and Productivity?
    Die Hu, Yuandi Wang, Yu Li.
    Business Strategy and the Environment. July 03, 2017
    With increasingly severe environmental regulations, a pressing issue has been the need for firms to develop efficient strategies to achieve environmental protection and high productivity. Several environmental experts argue that firms can respond to environmental regulations through innovation; however, the question of how to innovate is unanswered in the environmental literature. Therefore, this study focuses on the open innovation strategy approach to respond to environmental regulations and maintain high productivity by incorporating the idea of innovation management. We first divide open innovation strategy into two modes of external technology acquisition: foreign and domestic. Next, we examine these modes' mediation effects on environmental regulations and productivity. In addition, we test the moderating effect of internal R&D on the relationship between external technology acquisition and productivity. Using data on 35 Chinese industrial sectors from 2001 to 2010, the empirical findings show that foreign technology significantly and positively mediates the link between environmental regulations and productivity, while domestic technology does not. Internal R&D investment, as an absorptive capacity, positively moderates the effect of foreign technology; however, it negatively moderates the effect of domestic technology on productivity. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    July 03, 2017   doi: 10.1002/bse.1974   open full text
  • Effects of Environmental Regulations on Trade Flow in Manufacturing Sectors: Comparison of Static and Dynamic Effects of Environmental Regulations.
    Jung‐Ah Hwang, Yeonbae Kim.
    Business Strategy and the Environment. June 06, 2017
    This study analyzes environmental regulations and trade performance in manufacturing sectors under static and dynamic conditions. We investigate environmental innovation induced by environmental regulations and the spillover effect on manufacturing sectors, determine whether the spillover effect offsets any negative effect found under static conditions and analyze environmental regulations on the import side. For this, we formulate a trade model that incorporates the environmental innovation equation. We analyze environmental tax, energy tax and the Emissions Trading System (ETS) using strong, balanced panel data from 19 OECD countries for 1996–2009. The results reveal that the static effect of energy tax on exports is negative, but the dynamic effect is positive; however, the positive effect does not offset the negative effect. In short, environmental tax and energy tax decrease the international competitiveness of the manufacturing sectors. Environmental tax and energy tax limit imports, especially in the high‐energy consumption group. The analyses of the ETS further complicate the overall picture. It shows that the further research on the effects of ETS on manufacturing firms' competitiveness over their foreign competitors in the global is required. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    June 06, 2017   doi: 10.1002/bse.1965   open full text
  • Intra‐Sectoral Differences in Climate Change Strategies: Evidence from the Global Automotive Industry.
    Matthias Damert, Rupert J. Baumgartner.
    Business Strategy and the Environment. June 06, 2017
    Companies are increasingly challenged for action on climate change. Most studies on business responses to climate change focus on cross‐sector comparisons and neglect intra‐sectoral dynamics. This paper investigates the influence of supply chain position and regional affiliation on climate change strategies within a particular industry. We present a generic framework integrating both market and non‐market responses to climate change. We argue that climate change strategies comprise several corporate activities that have different foci of interaction and four main objectives: governance, innovation, compensation and legitimation. Using a global sample of 116 automotive companies, we conduct a cluster analysis and identify four types of strategy. We find that the sophistication of automobile manufacturers' strategies significantly differs from that of suppliers. Regional affiliation and firm size prove to be determinants of the strategy type pursued. We cannot find evidence for a relationship between financial performance and a company's strategic approach to climate change. © 2017 The Authors. Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd
    June 06, 2017   doi: 10.1002/bse.1968   open full text
  • Achieving Sustainable Development by Collaborating in Green Product Innovation.
    Lisa Melander.
    Business Strategy and the Environment. May 30, 2017
    Collaboration in green product innovation (GPI) is becoming increasingly important, and research on such innovation has grown in recent years. This study reviews literature on external collaborations in GPI to investigate drivers, inter‐organizational factors and intra‐organizational factors for such collaborations. The review includes a total of 67 papers. Survey studies and case studies are the methodologies applied most in the reviewed papers. The most common collaborators are suppliers and customers. Drivers include economic factors, regulations, customer demand, competitiveness and firm performance. Numerous inter‐organizational collaboration factors are presented and summarized in terms of partner selection, relationship management, knowledge access and agreements. Intra‐organizational factors mainly concern cross‐functional collaboration, capabilities and internal practices. Implications for policy and practitioners are presented. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    May 30, 2017   doi: 10.1002/bse.1970   open full text
  • ‘Carrots for Corporate Sustainability’: Impacts of Incentive Inclusiveness and Variety on Environmental Performance.
    Frederik Dahlmann, Layla Branicki, Stephen Brammer.
    Business Strategy and the Environment. May 26, 2017
    In this paper we explore the role that managerial incentives play in improving corporate environmental performance, finding that greater inclusiveness of incentive beneficiaries and greater variety of incentive types are important factors in firms' incentive schemes. Drawing on a large dataset of multinational enterprises, our results suggest that including more beneficiaries from different levels within the corporate hierarchy and offering both monetary and non‐monetary rewards are generally more likely to lead to reductions in corporate greenhouse gas emissions. Developing two principles of incentive design, inclusiveness and variety, and the conceptualization of patterns of these in organizations as configurations of incentives, our research contributes substantially to normative advice regarding the relative effectiveness of alternative systems of environmental incentives. Such an understanding of the potential of incentives is critical to informing how firms address complex problems such as sustainability in the context of increasingly extended organizational hierarchies and designs. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    May 26, 2017   doi: 10.1002/bse.1971   open full text
  • Setting Strategies outside a Typical Environmental Perspective Using ISO 14001 Certification.
    Andrea Chiarini.
    Business Strategy and the Environment. May 17, 2017
    The scope of this research is to evaluate whether ISO 14001 certification could be used as a strategic vehicle for achieving objectives that are not strictly linked to a technical and operative perspective, and to determine what these objectives are. In order to find these objectives, a review of the literature was first conducted to determine what they were and seven hypotheses emerged. The hypotheses concerned the possibility of using ISO 14001 as a strategy for achieving objectives related to finance and turnover, customer satisfaction, community satisfaction, employee satisfaction, health and safety in the workplace, and growth and skills of employees. The validity of each hypothesis was tested via a survey of 164 managers of European manufacturing companies. This research produced interesting findings, some of which contradicted the findings of other research, in particular for financial and turnover objectives. In addition, the research revealed interesting relationships between employees' skills and issues such as Design for the Environment and Sustainability. Furthermore, some limitations of ISO 14001 with respect to the Eco‐Management and Audit Scheme regulation emerged. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    May 17, 2017   doi: 10.1002/bse.1969   open full text
  • Sustainable retailing – influencing consumer behaviour on food waste.
    C. William Young, Sally V. Russell, Cheryl A. Robinson, Phani Kumar Chintakayala.
    Business Strategy and the Environment. May 11, 2017
    The aim of this research was to examine the influence of a UK national retailer on its customers' food waste behaviour. Using six communication channels (in‐store magazine, e‐newsletter, Facebook site, product stickers and in‐store demonstrations), Asda presented standard food waste reduction messages to its customers during two time limited periods in 2014 and 2015. Six national surveys over 21 months tracked customers' self‐reported food waste. Our results showed that the combined communication channels and repeated messages over time had a significant effect on reducing food waste of customers. Surprisingly, customers who said they did not recall seeing the messages also reduced their food waste, showing the wider influence of interventions. Those who saw a food waste reduction message saved an estimated £81 annually from reducing food waste. The main conclusion of this paper is that retailers can influence the pro‐environmental behaviour of customers using conventional communication channels; however, repeat messages are needed in order to have a long‐term impact. © 2017 The Authors. Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd
    May 11, 2017   doi: 10.1002/bse.1966   open full text
  • Coopetition as a Potential Strategy for Corporate Sustainability.
    Katherine L. Christ, Roger L. Burritt, Mohsen Varsei.
    Business Strategy and the Environment. May 05, 2017
    The paper is among the first to consider coopetition strategy in the context of corporate level sustainability. Through examination of literature and an example of an actual coopetitive agreement in wine industry logistics, consideration is given to the potential benefits of and problems with sustainability‐based coopetition strategies. The research, based on publicly available information, leads to suggestions for future study into specific theoretical, methodological and pragmatic aspects of sustainability‐related coopetition strategies. At a theoretical level, research into the dynamics of coopetition strategies and relationships between win–win and trade‐offs within economic, environmental and social performance settings is suggested. As the field of study continues to emerge, a broader set of exploratory case studies involving collaborative engagement and participation of practitioners is needed. Attention is also drawn to a broad range of settings available for further research into the design and implementation of sustainability‐related coopetitive strategies exploring advantages for corporations and society. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    May 05, 2017   doi: 10.1002/bse.1967   open full text
  • Management for Sustainable Development and Its Impact on Firm Value in the SME Context: Does Size Matter?
    Mª Eugenia López‐Pérez, Iguácel Melero, F Javier Sese.
    Business Strategy and the Environment. May 02, 2017
    With the increasing demands from society towards sustainable and social responsible business practices, management for sustainable development has become a cornerstone to understand the success of many firms in the current competitive context. This article investigates corporate social responsibility (CSR) and examines the links between CSR practices and business outcomes – both financial and non‐financial (i.e. image and corporate reputation) – for small‐to‐medium sized enterprises (SMEs). In addition, we also attempt to determine whether the impact of such relationships is moderated by firm size. To this end, we carry out a quantitative study using PLS techniques to analyze a sample of SME owners and managers, with a view to test the proposed model in the light of social capital theory. In this sense, our study is pioneering in that it aims to determine – from a quantitative viewpoint – the degree to which firm size has a moderating impact on a series of relevant CSR‐driven outcomes. The data suggest that, in SME contexts, CSR impacts corporate reputation, brand image and financial value of the company. Importantly, we find that the larger the firm, the greater the intensity of the relationships linking CSR and business outcomes. Hence, our findings have important implications for CSR implementation in SME contexts. Finally, we provide a series of guidelines aimed at maximizing the effectiveness of CSR‐based business practices. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    May 02, 2017   doi: 10.1002/bse.1961   open full text
  • Do Board's Corporate Social Responsibility Strategy and Orientation Influence Environmental Sustainability Disclosure? UK Evidence.
    Akrum Helfaya, Tantawy Moussa.
    Business Strategy and the Environment. April 19, 2017
    The environmental implications of corporate economic activities have led to growing demands for firms and their boards to adopt sustainable strategies and to disseminate more useful information about their activities and impacts on environment. This paper investigates the impact of board's corporate social responsibility (CSR) strategy and orientation on the quantity and quality of environmental sustainability disclosure in UK listed firms. We find that effective board CSR strategy and CSR‐oriented directors have a positive and significant impact on the quality of environmental sustainability disclosure, but not on the quantity. Our findings also suggest that the existence of a CSR committee and issuance of a stand‐alone CSR report are positively and significantly related to environmental sustainability disclosure. When we distinguish between firms with high and low environmental risk, we find that the board CSR/sustainability practices that affect the quantity (quality) of environmental sustainability disclosure appear to be driven more by highly (lowly) environmentally sensitive firms. These results suggest that the board CSR/sustainability practices play an important role in ensuring a firm's legitimacy and accountability towards stakeholders. Our findings shed new light on this under‐researched area and could be of interest to companies, policy‐makers and other stakeholders. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    April 19, 2017   doi: 10.1002/bse.1960   open full text
  • Innovation Capacity and the Implementation of Eco‐innovation: Toward a Contingency Perspective.
    Kuen‐Hung Tsai, Yi‐Chuan Liao.
    Business Strategy and the Environment. April 17, 2017
    This study develops a framework by drawing on the perspectives of contingency theory to investigate how innovation capacity affects eco‐innovation. The examination covers four moderators, including customer requirement, export destination, environmental regulation and government subsidy, and focuses on the types of eco‐innovation concerning pollution and waste. A sample of 2964 manufacturing firms from the Taiwanese Technological Innovation Survey is utilized to test the hypotheses. A moderated hierarchical logit method is adopted to analyze the data. The results overall suggest that the effect of innovation capacity on eco‐innovation depends on the levels of the four moderators. Specifically, the results show that innovation capacity has different effects on eco‐innovation when customers have a demand for eco‐innovation, export markets have high environmental awareness, future environmental regulations are expected, and the government provides a subsidy for environmental innovation. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    April 17, 2017   doi: 10.1002/bse.1963   open full text
  • Sustainable Development, Sustainability Leadership and Firm Valuation: Differences across Europe.
    Maria del Mar Miralles‐Quiros, Jose Luis Miralles‐Quiros, Irene Guia Arraiano.
    Business Strategy and the Environment. April 17, 2017
    Sustainable development is nowadays a high priority for firms all over the world. Consequently, numerous firms have increased their social responsibility initiatives, reinforcing the credibility and trust of their stakeholders. However, prior research about the relevance of sustainability leadership for the European investment community is scarce. In this context, the aim of this study is to examine whether sustainability leadership – proxied by membership of the Dow Jones Sustainability Index Europe – is value relevant for investors on the 10 major European stock markets over the 2001–2013 period. Our overall results reveal that there exist significant differences across markets. These findings are relevant especially for investors, but also for the managers of listed firms, market regulators and policymakers. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    April 17, 2017   doi: 10.1002/bse.1964   open full text
  • Measuring the Choice of Environmental Sustainability Strategies in Creating a Competitive Advantage.
    Philip R. Walsh, Rachel Dodds.
    Business Strategy and the Environment. April 17, 2017
    Environmental sustainability has often been claimed as a means to providing a competitive advantage by encouraging efficiencies, attracting customers and obtaining business. This work critically considers this idea in the context of the hotel industry by comparing the strategic intent and implementation of sustainability initiatives in hotels across North America. Environmental sustainability strategies can employ a low cost, a differentiated or a hybrid (a combination of the two) approach to creating a competitive advantage. Controlling for the type and age of hotel we find that the hotels sampled in this study used a combination of all three approaches but tended to rely on their need to create environmental sustainability legitimacy by placing an emphasis on differentiation through environmental sustainability branding. A lack of recognition by management of the contribution to their future economic success that low cost strategies can provide has implications for hotel owners. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    April 17, 2017   doi: 10.1002/bse.1949   open full text
  • Business Model Innovation for Sustainability: Towards a Unified Perspective for Creation of Sustainable Business Models.
    Steve Evans, Doroteya Vladimirova, Maria Holgado, Kirsten Van Fossen, Miying Yang, Elisabete A. Silva, Claire Y. Barlow.
    Business Strategy and the Environment. April 05, 2017
    Business model innovation has seen a recent surge in academic research and business practice. Changes to business models are recognized as a fundamental approach to realize innovations for sustainability. However, little is known about the successful adoption of sustainable business models (SBMs). The purpose of this paper is to develop a unified theoretical perspective for understanding business model innovations that lead to better organizational economic, environmental and social performance. The paper examines bodies of literature on business model innovation, sustainability innovation, networks theory, stakeholder theory and product–service systems. We develop five propositions that support the creation of SBMs in a unified perspective, which lays a foundation to support organizations in investigating and experimenting with alternative new business models. This article contributes to the emerging field of SBMs, which embed economic, environmental and social flows of value that are created, delivered and captured in a value network. It highlights gaps for addressing the challenges of business model innovation for sustainability and suggests avenues for future research. © 2017 The Authors. Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd
    April 05, 2017   doi: 10.1002/bse.1939   open full text
  • Eco‐efficiency: GHG reduction related environmental and economic performance. The case of the companies participating in the EU Emissions Trading Scheme.
    Albert Czerny, Peter Letmathe.
    Business Strategy and the Environment. April 05, 2017
    Empirical findings on eco‐efficiency are still inconsistent. Using survey data based on a sample of 283 European carbon‐intensive companies participating in the EU ETS between 2005 and 2012, this article investigates the causal relationships between the corporate environmental strategy focus, proactive GHG reductions and related environmental and economic performance, while taking into account an important contingent factor: the initial state of technology. The study's findings show that eco‐efficiency was generally not obvious among the companies during the first two trading periods. It furthermore indicates that GHG emissions were generally not reduced cost‐effectively, as companies' intrinsic values were more likely to have influenced carbon reduction related decisions to a greater degree than the economic incentives resulting from the market mechanisms of the ETS. The results not only shed light on firm behavior with regard to technology management but also provide insights for policy makers into how to stimulate more cost‐effective environmental investments. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    April 05, 2017   doi: 10.1002/bse.1951   open full text
  • The Impact of Carbon Performance on Climate Change Disclosure.
    Grigoris Giannarakis, Eleni Zafeiriou, Nikolaos Sariannidis.
    Business Strategy and the Environment. April 05, 2017
    In the light of the significant role of environmental accounting in sustainable development, this study examines whether climate change disclosure reflects a firm's environmental performance. The novelty of the study stands on the approaches adopted to describe environmental performance. The first approach concerns performance in terms of output, direct and indirect greenhouse gas emissions, while the second one is based on environmental intention of mitigating climate change, including climate change policy and emission reduction initiatives. The Climate Performance Leadership Index is employed as a measure for climate change disclosure level, incorporating initiatives contributing to climate change mitigation, adaptation and transparency. Ordered logit regression is the appropriate methodology for the data employed concerning firms listed on FTSE 350. According to our findings, environmental performance for both adopted approaches entails a positive effect on climate change disclosure, a result that is consistent with voluntary disclosure theory. It is inferred that firms cannot manipulate their information reflecting their actual environmental performance and adopting a forthright and factual attitude towards sustainable development. Finally, findings provide an insight into managers' strategic behavior towards climate change issues. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    April 05, 2017   doi: 10.1002/bse.1962   open full text
  • Factors Influencing Consumer Willingness to Pay for Low‐Carbon Products: A Simulation Study in China.
    Yong Liu, Dewei Yang, Hengzhou Xu.
    Business Strategy and the Environment. March 30, 2017
    Consumer choice behavior is crucial to supporting cleaner production and plays an essential role in low‐carbon development and environmental policy‐making. Therefore, combining system dynamics with an agent‐based model (SD–AB), the present study explores influencing factors on both providers' and consumers' sides. Using empirical data from selected firms and a questionnaire survey of residents in China, the simulation results revealed that consumers' low‐carbon awareness and income have little effect on their willingness to pay for low‐carbon products. In contrast, some factors have an obvious effect on consumers' willingness to pay for low‐carbon products, including the delivery speed of low‐carbon products, consumers' patience and degree of satisfaction. Thus, companies that provide low‐carbon products should be more focused on customer expectations and should ensure timely and efficient delivery to consumers. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    March 30, 2017   doi: 10.1002/bse.1959   open full text
  • European Pension Funds and Sustainable Development: Trade‐Offs between Finance and Responsibility.
    Riikka Sievänen, Hannu Rita, Bert Scholtens.
    Business Strategy and the Environment. March 28, 2017
    Pension funds try to account for sustainable development in their operations. This mainly translates in responsible investing. We investigate how this interacts with the financial objectives. We use a survey of more than 250 pension funds based in 15 European countries. Multinomial logistic regression is used to find out how pension funds trade off sustainable development and financial objectives. Our findings suggest that pension funds that have not included responsibility in their strategy and investments have a clear priority regarding their financial performance. Pension funds who integrate sustainable development in their strategy can bring balance between finance and responsibility. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    March 28, 2017   doi: 10.1002/bse.1954   open full text
  • Doing More with Less: Building Dynamic Capabilities for Eco‐Efficiency.
    Jean D. Kabongo, Olivier Boiral.
    Business Strategy and the Environment. March 28, 2017
    This article sheds light on the manner in which managers perceive, develop and integrate dynamic capabilities for eco‐efficient activities inherent to industrial ecology. The research employs a case study of 12 Canadian facilities involved in the processing of a wide variety of waste materials. Findings from the experiences of 60 managers interviewed reveal that capabilities for industrial ecology largely depend upon the integration and coordination of competencies, innovations and new routines related to several functional areas: innovation and technological development; control of residual material flows; adjustments in human resources; management of environmental constraints; and networking and marketing. These dynamic capabilities are developed and integrated through a four‐stage process: local experimentation, internal operationalization, enlargement/cross‐functional integration and strategic consolidation. The paper contributes to the extant literature related to dynamic capabilities and the natural resource‐based view by offering an understanding of those factors necessary for the success of industrial ecology, and also by demonstrating the functional and dynamic nature of such factors. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    March 28, 2017   doi: 10.1002/bse.1958   open full text
  • Understanding the Impact of Green Initiatives and Green Performance on Financial Performance in the US.
    Suhong Li, Thomas Ngniatedema, Fang Chen.
    Business Strategy and the Environment. March 28, 2017
    Sustainable development has received increasing attention in recent literature, driven by increased environmental concerns. We study the influence of green initiatives and green performance on financial performance for the top 500 publicly traded companies in the USA by industry sector. Green initiatives are measured using the concepts Green Pay Link, Sustainability Themed Committee and Audit. Green performance is measured using Energy Productivity, Carbon Productivity, Water Productivity, Waste Productivity and Green Reputation. The results show that green initiatives have a negative impact on Energy Productivity and Green Reputation, and that both green initiatives and green performance have a significant impact on financial performance. These results are mixed and vary by industry sector. The results suggest that companies take a reactive, not proactive, approach in the implementation of green initiatives. In addition, the results suggest that the impact of green performance on financial performance is not immediate, and may take more than a year for companies to observe. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    March 28, 2017   doi: 10.1002/bse.1948   open full text
  • Examining the effect of managing GHG emissions on business performance.
    G Capece, F Di Pillo, M Gastaldi, N Levialdi, M Miliacca.
    Business Strategy and the Environment. March 27, 2017
    Unprecedented climate changes menace not only the planetary ecosystem, but also the stability of the global economy. The European Union has for years promoted the transition of the economy towards a model of sustainable development, stimulating companies to adopt a strategic approach based on quality and environmental efficiency, rather than on quantity and reduction of costs. The aim of this study is to analyze how greater attention to the environmental effects of a company's activities (environmental management) and monitoring and reduction of CO2 emissions (emission management) can improve the company's economic performance. We analyze the financial data and greenhouse gas (GHG) emission figures for a sample of large Italian companies, searching for potential relations between increasing returns on capital invested and the reduction of pollutants. The results show that the companies examined are ever more attentive to environmental policies, and that those with a green vision achieve better operating performance. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    March 27, 2017   doi: 10.1002/bse.1956   open full text
  • Toward A Place‐Based Understanding of Business Sustainability: The Role of Green Competitors and Green Locales in Firms' Voluntary Environmental Engagement.
    Jennifer DeBoer, Rajat Panwar, Jorge Rivera.
    Business Strategy and the Environment. March 20, 2017
    Management research has extensively considered who, what, when, why, which and how aspects pertaining to firms' voluntary environmental practices, yet the where aspect, which would consider the role of a firm's location on its environmental practices, has received remarkably less attention. We explore three research questions relating social and physical attributes of a firm's location with its engagement in a voluntary environmental program (VEP). Drawing on a sample of hotels participating in a Costa Rican VEP, we find that the number of VEP certified competitors (i.e. green competitors) and firm proximity to a sacrosanct environment (i.e. a green locale) are positively related to a firm's level of VEP engagement. We also find an interaction effect such that the relationship between the number of VEP certified competitors and the level of VEP engagement is positively moderated by firm proximity to a green locale. We argue that firms' voluntary environmental engagement can be enhanced by developing green clusters amid green corridors. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    March 20, 2017   doi: 10.1002/bse.1957   open full text
  • Does Innovation Drive Environmental Disclosure? A New Insight into Sustainable Development.
    Camélia Radu, Claude Francoeur.
    Business Strategy and the Environment. March 20, 2017
    Sustainable development is a hot topic in business and the media, and there is a growing demand for reliable environmental disclosure from a wide range of stakeholders. Ethical performance, including social and environmental performance, is actively scrutinized. A firm's stakeholders expect reliable disclosure to correctly assess its performance. Research on the link between environmental disclosure and environmental performance shows mixed results. Both a positive and a negative association have been found. This study reexamines this association by considering environmental innovation as a key determinant of environmental disclosure. We find that environmental performance and environmental innovation jointly determine environmental disclosure. At low levels of environmental performance, innovative firms tend to disclose more than their non‐innovative counterparts to inform stakeholders about their innovation and strategy to obtain an improved environmental performance. This disclosure gap tends to diminish as innovative firms become better environmental performers. The higher levels of environmental disclosure are closely associated with firms' environmental performance for both groups. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    March 20, 2017   doi: 10.1002/bse.1950   open full text
  • Environmental Behavior and MNEs: A Strategy Pulled by Stakeholder Engagement.
    Blanca L. Delgado‐Márquez, Luis Enrique Pedauga.
    Business Strategy and the Environment. March 20, 2017
    This research attempts to examine how multinational enterprises (MNEs) from regulated and non‐regulated industries shape their environmental strategies with regard to environmental disclosure and performance. Results reveal that regulated (non‐regulated) MNEs display worse (better) environmental performance levels and disclose less (more) environmental information than MNEs operating in non‐regulated (regulated) environments. We argue that this strategy is set as an answer to cope with legitimacy problems faced by MNEs as well as to respond to increased demands from stakeholder groups. We contend that our findings may contribute to existing literature and be of relevance for practitioners. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    March 20, 2017   doi: 10.1002/bse.1955   open full text
  • Institutional Constraints, Stakeholder Pressure and Corporate Environmental Reporting Policies.
    Isabel Gallego‐Alvarez, Eduardo Ortas, José Luis Vicente‐Villardón, Igor Álvarez Etxeberria.
    Business Strategy and the Environment. February 23, 2017
    Within the theoretical framework of socio‐political economics, and more specifically of stakeholder theory, this work examines whether companies operating under different institutional constraints and stakeholder pressure tend to emphasize different models of corporate environmental reporting. Furthermore, the paper tests whether different corporate environmental reporting policies are driven by the countries' corporate governance systems. A sample of 3931 international companies was examined through a logistic biplot and conditional mean linear regression models. The main results reveal that companies follow two distinct environmental reporting approaches, which depend on specific stakeholders and institutional requirements. The first model, which is followed by firms within codified law countries, mostly focuses on water and emissions. The second approach, mainly followed by companies operating in common law countries, emphasizes materials and energy issues. This finding reveals that companies gradually modify their environmental strategies to make themselves more compatible with the characteristics of the social and institutional environment, which will result in several corporate benefits. The paper provides several outstanding implications for companies' strategic managers, national institutions and firms' stakeholders, especially for investors and customers. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    February 23, 2017   doi: 10.1002/bse.1952   open full text
  • Determinants of monetary penalties for environmental violations.
    Ahsan Habib, Md Borhan Uddin Bhuiyan.
    Business Strategy and the Environment. February 23, 2017
    This research investigates the likely determinants of monetary penalties for poor environmental performance. We retrieve data from Bloomberg on the monetary penalties imposed on companies in the European Union (EU) found to have performed poorly in corporate social responsibility (CSR), and particularly in the environmental aspects of CSR. Our primary findings reveal that firms with high levels of greenhouse gas and hazardous waste emissions are more likely to receive monetary penalties. On the other hand, firms that invest in green supply chain practices and disclose environment‐related matters avoid monetary penalties more. We also find that firms having executive compensation linked with environmental compliance face more monetary penalties. This finding adds a new dimension to the voluminous research on executive compensation that has investigated primarily the effects of cash and stock option‐based compensation schemes on pay–performance sensitivities. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    February 23, 2017   doi: 10.1002/bse.1947   open full text
  • Sustainability in The Banking Industry: A Strategic Multi‐Criterion Analysis.
    Rakesh Raut, Naoufel Cheikhrouhou, Manoj Kharat.
    Business Strategy and the Environment. February 22, 2017
    The current paper aims to develop an effective and integrated MCDM model for the evaluation of the sustainability practices in the banking services, employing a multi‐stage, fuzzy MCDM model that integrates the Balanced Scorecard, fuzzy AHP and fuzzy TOPSIS. The approach aims to evaluate sustainability from the following four perspectives: financial stability, customer relationship management, internal business process and environment‐friendly management system. A real implementation dealing with the six largest commercial banks in India is discussed. The results highlights the critical aspects of the evaluation criteria and the issues in improving sustainable banking performances. Regarding the sustainability issues, it is shown that the environment‐friendly management system takes a back seat compared with the other criteria. Furthermore, the results show that there is a misunderstanding of the role that corporate social responsibility plays with respect to environmental issues. The developed evaluation model offers a valuable management tool for banks' administrators by assisting them in strategic choices in order to achieve their objective of sustainability and sustainable banking. Moreover, it offers a measuring tool with unique features that complements the emerging trend of integrated reporting considering uncertainty. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    February 22, 2017   doi: 10.1002/bse.1946   open full text
  • Assessing the Effects of Climate Change Regulations on the Business Community: A System Dynamic Approach.
    Thomas A. Tsalis, Ioannis E. Nikolaou.
    Business Strategy and the Environment. February 15, 2017
    Based on the business environmental literature and system dynamics, this paper develops a simulation model for managing the business risks derived from climate change. In particular, the purpose of this paper is to transform the valuable findings from the literature regarding climate change and corporate implications into an effective business management model with a broad applicability, regardless of the size of the business or the sector in which it operates. A methodology consistent with the basic principles of the system dynamic modeling process is developed, and a case study is designed to determine the level of completeness of the simulation model and its ability to address different aspects of business performance. To do so, three different scenarios have been simulated to analyze the reactive, proactive and inactive stance of managers against climate change risks. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    February 15, 2017   doi: 10.1002/bse.1953   open full text
  • A Personal Construct Psychology Based Investigation Into A Product Service System For Renting Pushchairs To Consumers.
    Maurizio Catulli, Nick Reed.
    Business Strategy and the Environment. February 01, 2017
    This paper explores how consumers construe a product service system (PSS) for the supply of pushchairs. A PSS is a system of products, services, networks of actors and supporting infrastructure designed to be more sustainable than traditional business models. PSSs face an implementation challenge in consumer markets, and this case based research explores some reasons for this. The study applies personal construct psychology (in particular, the repertory grid technique), which has not previously been used in relation to researching PSSs. Results suggest that a PSS might be difficult to implement in relation to pushchairs. Renting pre‐used equipment may meet resistance because of a perceived risk that acquisition by this means might endanger infants. Participants in the study construed buying new products from specialist infant product shops as being the best way of acquiring them. Accordingly, PSS providers may, for instance, have to implement certified quality assurance processes in order to reassure consumers. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    February 01, 2017   doi: 10.1002/bse.1944   open full text
  • Our Collaborative Future: Activities and Roles of Stakeholders in Sustainability‐Oriented Innovation.
    Jennifer Goodman, Angelina Korsunova, Minna Halme.
    Business Strategy and the Environment. January 17, 2017
    While stakeholders have long been at the forefront of sustainable development debates, the emphases have tended to be on different stakeholder pressures, or managing stakeholder expectations about controversial issues. In this paper we bring a fresh direction to these debates and ask in what ways different stakeholders can contribute to sustainable innovation in firms. Based on 80 semi‐structured interviews, we conduct a fine‐grained qualitative analysis of stakeholder activities in sustainability‐oriented innovation (SOI) processes in 13 different companies across Europe. Our analysis identifies eight roles that stakeholders play in SOI processes: stimulator, initiator, broker/mediator, concept refiner, legitimator, educator, context enabler and impact extender. More traditional roles such as legitimator and educator are less common in our cases. However, emerging roles such as stimulator, concept refiner, context enabler and impact extender are clearly identifiable and could be particularly valuable for SOI. We enhance a collaborative perspective of stakeholder theory, finding that stakeholders can play highly collaborative and proactive roles, and argue that secondary stakeholders may actually be more relevant for SOI than primary stakeholders. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    January 17, 2017   doi: 10.1002/bse.1941   open full text
  • Exploring the Framework Development Status for Sustainability in Supply Chain Management: A Systematic Literature Synthesis and Future Research Directions.
    Zulfiquar N. Ansari, Ravi Kant.
    Business Strategy and the Environment. January 17, 2017
    The need to integrate environmental and social aspects into the supply chain has created a debate amongst academicians and researchers on two topics: sustainability and the supply chain. A large number of journals and special volumes are publishing research that carries out a case study or survey, develops a mathematical model or builds a conceptual model/framework on sustainable supply chain management (SSCM). However, classified analysis of articles that develop a framework on SSCM has not been carried out by any researcher. The study thus aims to review SSCM framework articles to identify the major contributions and gaps. A total of 92 framework articles on SSCM from the sample of 349 over a period of 19 years (1998–2016) are structurally analyzed to meet the objectives. The selected literature is categorized by novel or adapted framework, source of framework, framework verification, method used for framework verification and identifying the constructs/elements that build the structural framework. Analyzing the literature sample using these categories reveals that framework development in the context of SSCM is still an area with ample future opportunities. The findings of the study are especially interesting for academicians and practitioners to investigate the critical gaps in the field of sustainable supply chain management frameworks (SSCMFs). Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    January 17, 2017   doi: 10.1002/bse.1945   open full text
  • The Influence of Board Composition on Sustainable Development Disclosure.
    Mohammad Jizi.
    Business Strategy and the Environment. January 17, 2017
    Despite knowing the potential effect of social reporting on firms' continuity, there is limited research into the influence of the composition of boards of directors on CSR disclosure. This paper adds to the emerging CSR literature empirical evidence by examining how board composition relates to a firm's social and environmental disclosure as well as the implementation of social policies. Using a sample of FTSE 350 firms for the period 2007–2012, the results show that higher board independence facilitates the conveying of firms' good citizenship image through enhancing societal conscience. The results also show that female participation on boards is favorably affecting CSR engagement and reporting as well as the establishment of ethical policies. Hence, the research suggests that boards with higher female participation and independence boost the legitimacy of CSR reporting. Board gender diversity and independence facilitates directing part of the firm's scarce resources toward value maximizing social projects and subsequent reporting on these. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    January 17, 2017   doi: 10.1002/bse.1943   open full text
  • Moving to the Next Strategy Stage: Examining Firms' Awareness, Motivation and Capability Drivers in Environmental Alliances.
    Lea Stadtler, Haiying Lin.
    Business Strategy and the Environment. January 10, 2017
    Complementing extant studies on the antecedents of firms' environmental strategy, this article focuses on the trajectories of corporate engagement in proactive environmental alliances. Specifically, we build an awareness–motivation–capability framework and analyze factors that drive the move beyond incremental pollution prevention and facilitate firms' engagement in transformative, sustainable development strategies in their alliances. Based on 212 environmental alliance‐related observations, our test results indicate limited explanatory power of regulatory pressures, but highlight the role of firms' environmental networks to sharpen their awareness to engage in transformative alliances. Further, we elaborate on the nuances and boundary conditions of firms' risk‐taking propensity, industry concentration, financial capacity and especially prior sector‐spanning experiences as motivation and capability drivers. These insights contribute to the discourse on firms' environmental strategy and alliance formation by depicting how and to what extent environment‐specific and more general firm attributes predispose them to engage in transformative rather than incremental environmental projects. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    January 10, 2017   doi: 10.1002/bse.1937   open full text
  • Toward Sustainable Livelihoods: Investigating the Drivers of Purchase Behavior for Green Products.
    Chiou‐Fong Wei, Chang‐Tang Chiang, Tun‐Chih Kou, Bruce C Y Lee.
    Business Strategy and the Environment. January 09, 2017
    Green consumption involves comprehensive concerns that address the broad scope of sustainability, ecosystem balance, profit‐generation and people. Identifying the factors that influence consumers' purchase behavior enables manufacturers to understand consumers' decision‐making processes and can help them develop more environmentally beneficial products. However, scholars have recently found that a gap exists between environmental concern and consumers' actual purchase behavior. The purpose of this paper is to use cognitive behavior theory to investigate the drivers of green consumption behavior and the missing link in the concern–behavior gap. After collecting 375 valid questionnaires, this study validated the proposed conceptual model using structural equation modeling. The revised model indicates that environmental involvement, informational utility, green advertising skepticism and green trust are antecedent variables of consumer attitudes toward green products. Additionally, this study also provides a possible explanation of and remedies for the concern–behavior gap. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
    January 09, 2017   doi: 10.1002/bse.1942   open full text
  • Corporate Sustainable Development and Marketing Communications on Social Media: Fortune 500 Enterprises.
    Ya‐Ching Lee.
    Business Strategy and the Environment. December 28, 2016
    This study proposes a measurement to evaluate corporate sustainability marketing communications on social media implemented by Fortune 500 enterprises. The results reveal significant differences between sustainability marketing communications in blogs and on Facebook. This study makes theoretical contributions by proposing a customer‐centric SMC framework that integrates sustainability issues, stimulation of sustainable mindsets and encouragement of sustainable consumption. It also demonstrates how corporate sustainability marketing communications differ on different social media. In addition, practical suggestions are provided. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment
    December 28, 2016   doi: 10.1002/bse.1936   open full text
  • The Value Relevance of Environmental Audits: Evidence from Japan.
    Ki‐Hoon Lee, Bum‐Jin Park, Hakjoon Song, Keun‐Hyo Yook.
    Business Strategy and the Environment. December 09, 2016
    Environmental audits are implemented internally in order to monitor compliance with environmental laws, regulations and related accounting rules, and to develop recommendations for ways in which to improve environmental accounting processes and performance. In addition, external third‐party assurance on environmental information is used to verify whether firms’ disclosures on environmental information are in compliance with environmental accounting rules and regulations. We examine whether firms’ environmental audits positively affect their market values and whether third‐party assurance strengthens positive effects, using value relevance theory as a theoretical foundation. Our main tests are based on 266 Japanese manufacturing firms’ published environmental reports for the period 2010–2013. We find that the average market value of firms that implement environmental audits is 9 percent greater than those that do not. Further, we find that environmental audits positively affect firm value, largely through interaction with third‐party assurance. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment
    December 09, 2016   doi: 10.1002/bse.1940   open full text
  • Integrating Environmental, Social and Governance (ESG) Disclosure for a Sustainable Development: An Australian Study.
    Chitra Sriyani De Silva Lokuwaduge, Kumudini Heenetigala.
    Business Strategy and the Environment. December 09, 2016
    Addressing environmental, social and governance (ESG) issues has become a critical part of business strategy. This article explores the extent of ESG reporting of metal and mining sector companies listed in the Australian Securities Exchange to determine the nature of ESG indicators in use in the sector. The current study argues that stakeholder engagement is the key to enhance company environmental policy and sustainable development. According to the results of this study, ESG reporting motives are highly influenced by reporting regulations. Given the diversity in reporting of ESG, comparability of ESG strategic performance is problematic. This study contributes towards developing an ESG disclosure index, which companies could use as a legitimacy tool that external stakeholders could use to reliably measure and compare the ESG performance of companies. It also reveals there is an increased demand for more empirical research on integration of sustainability into strategic planning process. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment
    December 09, 2016   doi: 10.1002/bse.1927   open full text
  • Enhancing Market Valuation of ESG Performance: Is Integrated Reporting Keeping its Promise?
    Laura Mervelskemper, Daniel Streit.
    Business Strategy and the Environment. December 08, 2016
    This paper studies the effectiveness of a firm's strategy to report on its ESG activities with regard to the extent and direction in which the firm's ESG performance is valued by capital market investors. It is the first to disentangle the moderating effects of different types of ESG reporting on market valuation of ESG performance and to analyze whether following the current integrated reporting trend is worth the effort. Results indicate that ESG performance is valued more strongly and in the (desired) positive direction when firms publish an ESG report, irrespective of its type (stand‐alone or integrated). Furthermore, integrated reporting is associated with superior outcomes compared with a stand‐alone report for composite ESG and corporate governance performance. Our findings are important for corporate managers, as they help to understand market valuation of ESG performance in dependence on the reporting type and provide guidance for formulating and evaluating the reporting strategy. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment
    December 08, 2016   doi: 10.1002/bse.1935   open full text
  • Environmental Strategy and Competitive Advantage: The Role of Small‐ and Medium‐Sized enterprises' Dynamic Capabilities.
    Wai Wai Ko, Gordon Liu.
    Business Strategy and the Environment. December 07, 2016
    Drawing on the resource‐based theory and institutional theory, we develop a framework to explain the processes by which the environmental strategy of small‐ and medium‐sized enterprises (SMEs) contributes to their competitive advantage. We test our assumption using data collected from 214 UK‐based SMEs in the technology sector. We find that the effects of environmental strategy can lead to development of their marketing competence, as well as research and development (R&D) competence, which ultimately contributes to superior financial performance. We also find that a reciprocal causal relationship exists between SMEs' marketing and R&D competences. Combined, we reveal the presence of a serial multiple mediation relationship between SMEs' environmental strategy and financial performance through marketing competence and then R&D competence, or vice versa. Our study offers important academic and managerial implications, and also points out future research directions. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment
    December 07, 2016   doi: 10.1002/bse.1938   open full text
  • The Governance of Corporate Responses to Climate Change: An International Comparison.
    Rory Sullivan, Andy Gouldson.
    Business Strategy and the Environment. October 13, 2016
    In response to pressures from governments, investors, non‐governmental organizations and other stakeholders, many large corporations have adopted a variety of carbon and energy management practices, taken action to reduce their emissions and set targets to reduce their greenhouse gas emissions. Using the case of international retailers, this article examines whether, and under what conditions, non‐state actors might be capable of assuming the governance roles that have historically been played by national governments. This article concludes that external governance pressures can, if they are aligned, robust and of sufficient duration, have a significant influence on internal governance processes and on corporate strategies and actions. However, the specific actions that are taken by companies – in particular those that require significant capital investments – are constrained by the ‘business case’. That is, companies will generally only invest capital in situations when there is a clear financial case (i.e. where the benefits outweigh the costs, when the rate of return meets or exceeds company targets) for action. That is, the extent to which external governance pressures can force companies to take action, in particular challenging or transformative actions that go beyond the boundaries of the business case, is not at all clear. This is particularly the case if the business case weakens, or if the opportunities for incremental change are exhausted. In that context, the power of non‐state actors to force them to consider radical changes in their business processes and their use of energy therefore seems to be very limited. Copyright © 2016 The Authors. Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd
    October 13, 2016   doi: 10.1002/bse.1925   open full text
  • Organizational Visibility, Stakeholder Environmental Pressure and Corporate Environmental Responsiveness in China.
    Jieqiong Yu, Carlos Wing‐Hung Lo, Pansy Hon Ying Li.
    Business Strategy and the Environment. October 13, 2016
    This article investigates the relationship between organizational visibility and corporate environmental responsiveness in China. It also examines whether this relationship is mediated by stakeholder pressure, and whether the strength of the relationships among organizational visibility, stakeholder pressures and corporate environmental responsiveness is moderated by the type of enterprise ownership. Based on the responses from a survey involving 131 enterprises, this study suggests a potentially positive and significant correlation between organizational visibility and corporate environmental responsiveness in China. However, the study reveals surprisingly that stakeholder pressure for environmental improvements does not seem to account for the above correlation. Organizational visibility is found to be negatively associated with stakeholder pressure in the case of Chinese‐owned enterprises, and stakeholder pressure has no significant associations with corporate environmental responsiveness. In addition, the moderating effect of enterprise ownership is strongly evidenced, which provides important policy implications for developing effective mechanisms to stimulate environmental management practices. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment
    October 13, 2016   doi: 10.1002/bse.1923   open full text
  • Sustainable Corporate Entrepreneurship: Performance and Strategies Toward Innovation.
    Anna Katharina Provasnek, Erwin Schmid, Bernhard Geissler, Gerald Steiner.
    Business Strategy and the Environment. October 12, 2016
    The field of sustainable corporate entrepreneurship is in a nascent stage. By developing a position matrix of companies with respect to their corporate entrepreneurship and sustainability performance, we make conceptual contributions to an integrated perspective on elements supporting a sustainable corporate entrepreneurship process. We propose that such a process without evolving corporate sustainability is misleading. Methodologically, we investigate publicly available index ratings to assess strategies for and qualitative measurement of the sustainable development and innovation performance of eight top‐ranked international companies. Findings show that the strategies of the identified companies correspond well to our typology and allow suggestions of where efforts for corporate sustainability and/or entrepreneurship could be reinforced to gain or maintain a benchmark position. The article will clarify underlying elements of, and help to advance strategies for the implementation of, a sustainable corporate entrepreneurship process. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment
    October 12, 2016   doi: 10.1002/bse.1934   open full text
  • Green Product Innovation in Manufacturing Firms: A Sustainability‐Oriented Dynamic Capability Perspective.
    Rosa Maria Dangelico, Devashish Pujari, Pierpaolo Pontrandolfo.
    Business Strategy and the Environment. September 30, 2016
    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
    September 30, 2016   doi: 10.1002/bse.1932   open full text
  • Integrating Behavioural and Branding Perspectives to Maximize Green Brand Equity: A Holistic Approach.
    Muhammad Mohsin Butt, Saadia Mushtaq, Alia Afzal, Kok Wei Khong, Fon Sim Ong, Pui Fong Ng.
    Business Strategy and the Environment. September 30, 2016
    The aim of this study is to expand the existing understanding of green consumers' behaviour by proposing and testing an integrated conceptual model that explores the influence of consumers' personal concerns for the environment and general attitudes towards green products on brand‐related knowledge structures (image and associations) and relationship preferences (trust and brand equity) for green brands. A questionnaire‐based survey method was used to collect data using convenience sampling. One hundred and ninety‐nine usable responses were obtained. A structural equation modelling procedure was used to test the proposed hypotheses. The results confirmed that a positive relationship exists between consumer concern for environmental values and general attitudes towards green products. Both these constructs influence consumers' knowledge structure of a green brand (image and associations). Furthermore, a strong relationship exists between consumers' knowledge structure (image and associations) and their relational preference (trust and brand equity) with green brands. These findings are important for business strategy formulation by providing empirical support for the idea that a firm should invest its resources not only to project its environmentally friendly brands but also to build consumers' concern for environmental values and their attitude towards green products. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment
    September 30, 2016   doi: 10.1002/bse.1933   open full text
  • Measuring Retailers' Sustainable Development.
    Chorong Youn, So‐young Kim, Yuri Lee, Ho Jung Choo, Seyoon Jang, Jae Im Jang.
    Business Strategy and the Environment. September 30, 2016
    This study aimed to develop a framework and measurement items for retailers to assess sustainability while avoiding potential subjectivity by combining top‐down and bottom‐up approaches, and verifying their validity based on consumer perceptions of sustainable retailing. The framework consisted of 54 measurement items categorized into a three‐order hierarchical model. At the top level of the model, there were three third‐order dimensions respectively related to consumers, retailers, and society. At the middle level, eight second‐order sub‐dimensions associated with retailing mix were classified into the aforementioned third‐order dimensions. At the bottom level, there were 21 first‐order sub‐dimensions related to the sustainable retailing activities. The development of sustainability assessment by combining top‐down and bottom‐up approaches and including consumer perceptions will allow retailers to assess their sustainability more strategically, as it will reduce the subjectivity and increase consumers' recognition of sustainable retailing. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment
    September 30, 2016   doi: 10.1002/bse.1924   open full text
  • Cultivating Ecological Knowledge for Corporate Sustainability: Barilla's Innovative Approach to Sustainable Farming.
    Stefano Pogutz, Monika I. Winn.
    Business Strategy and the Environment. September 05, 2016
    In this paper, we link three theoretical perspectives – organizational knowledge, ecological knowledge and social–ecological systems – to derive new conceptions of multi‐disciplinary, multi‐tier, sustainability‐oriented knowledge. Our study examines how collaboration between pasta‐producer Barilla, the farmers/smallholders supplying the firm and scientists generated sustainability practices in the agri‐food industry by creating transformative ecological, technical and scientific knowledge. In 2010, Barilla initiated a sustainable farming project to significantly reduce the environmental impact of cultivating durum wheat, its most important raw material. Core components included replacing monoculture with crop rotation, collectively creating innovative approaches that support farmers’ decision making and generating widely accessible guidelines for sustainability‐oriented cropping knowledge and practices. These collaborative efforts initiated profound transformations within and beyond the organization's boundaries via increased production yields, reduced environmental impacts and improved sustainability of farming practices, which generated economic, social and ecological benefits for farmers, surrounding communities and the firm. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment
    September 05, 2016   doi: 10.1002/bse.1916   open full text
  • Modelling Corporate Stakeholder Orientation: Does the Relationship Between Stakeholder Background Characteristics and Corporate Social Performance Matter?
    Michael O. Erdiaw‐Kwasie, Khorshed Alam, Enamul Kabir.
    Business Strategy and the Environment. September 01, 2016
    Though corporate stakeholder orientation is connected with corporate social performance practices, there is a dearth of knowledge on the theorized assertion that background characteristics influence stakeholders’ salience and attitude towards social performance practices of firms. The aim of this paper is to measure and examine this hypothesis. To test this claim, this research uses the Surat Resource Region in Queensland, Australia, as the case study. Based on the bivariate test, age, gender, occupation type and educational status have varying statistically significant effects on stakeholders’ attitude towards corporate social practices. The multinomial logistic findings showed that only education retained a net effect on a stakeholder's attitude to participation in corporate social practices, where those with a higher level of education are 1.388 times more likely to perceive stakeholder engagement practices as relevant, 2.864 times more likely for social impact assessment practices and 1.430 times more likely for practices aimed at rights of indigenous communities. Findings imply the need for awareness programs to be incorporated into corporate social practices, which can help promote the success of stakeholder‐oriented policies. The paper further makes suggestions that have both business strategy and policy planning implications. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment
    September 01, 2016   doi: 10.1002/bse.1930   open full text
  • A Survey of Transparency: An Intrinsic Aspect of Business Strategy.
    Elisa Baraibar‐Diez, María D. Odriozola, José Luis Fernández Sánchez.
    Business Strategy and the Environment. September 01, 2016
    Well‐managed organizations must handle transparency strategically, but although research about transparency constitutes a great concern in businesses, management, society, and ethics, definitions are very diverse depending on the environment. The concept of transparency is revisited in this contribution, aiming to map the territory of transparency by surveying the terms and definitions in literature. The overview of these terms identifies two approaches of analysis: according to the content and according to the context. According to the context, two perspectives have been found: collective perspective and individual perspective. According to the content of the definition, two perspectives have been found: instrumental perspective and purposeful perspective. This survey helps to determine that transparency is an intrinsic aspect of business strategy since it is interweaved with all organizational components and systems of the strategic management process. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment
    September 01, 2016   doi: 10.1002/bse.1931   open full text
  • Remanufacturing for the Circular Economy: An Examination of Consumer Switching Behavior.
    Benjamin T. Hazen, Diane A. Mollenkopf, Yacan Wang.
    Business Strategy and the Environment. August 31, 2016
    For the circular economy to be tenable, consumers need to not only return products after use, but also purchase products that are remanufactured. However, research finds that consumers have a poor opinion of remanufactured products and are typically not prepared to adopt them. Thus, development of the circular economy is dependent upon deeper understanding of consumers’ attitudes and behaviors. Research typically considers either micro‐level or macro‐level factors when assessing consumer perceptions of remanufactured products. The current research incorporates macro‐level factors of price, government incentives and environmental benefits with the moderating influence of micro‐level consumer attitudes to examine consumers’ intention to switch from purchasing new products to remanufactured products. The findings suggest that a consumer's attitude toward remanufactured products is an important moderating factor predicting consumer switching behavior to remanufactured products. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment
    August 31, 2016   doi: 10.1002/bse.1929   open full text
  • Sustainability Strategy and Eco‐Innovation: A Moderation Model.
    Kuen‐Hung Tsai, Yi‐Chuan Liao.
    Business Strategy and the Environment. August 31, 2016
    This study develops a moderation model to examine the role of a proactive environmental strategy on eco‐innovation. Drawing upon the perspectives of contingency theory, this study argues that the impacts of sustainability strategy on eco‐innovation depend on market demand, innovation intensity and government subsidy. The sample used to test the hypotheses is obtained from the Community Innovation Survey in Taiwan. A total of 2955 manufacturing firms are included in the final sample. A logit moderating regression is adopted to analyze the models. The results reveal that market demand and government subsidy positively moderate the relationship between environmental strategy and eco‐innovation. Specifically, firms are more likely to adopt a proactive environmental strategy to improve eco‐innovation under high levels of market demand and government subsidy. Furthermore, the results indicate that innovation intensity affects the effect of environmental strategy on eco‐innovation, but the direction of the influence varies with different categories of eco‐innovation. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment
    August 31, 2016   doi: 10.1002/bse.1926   open full text
  • Prioritizing Sustainability Indicators: Using Materiality Analysis to Guide Sustainability Assessment and Strategy.
    Jay Whitehead.
    Business Strategy and the Environment. August 31, 2016
    Despite the growing awareness of complexity in sustainable development, the practical implementation of sustainability assessment through the use of sustainability indicators requires prioritizing the myriad indicators available. This study identifies the highest priority sustainability indicators for the New Zealand wine industry using materiality analysis. Thirteen information sources representative of different stakeholder perspectives considered to drive the need for sustainability assessment are analysed to provide a measure of sustainability issue salience and risk. Based on a meta‐analysis of relevant information, it is found that environmental issues make up the highest priority issues, followed by social issues relating primarily to worker wellbeing. Significantly, economic and governance issues were not found to be high priorities. These findings are discussed in the context of the common bias in agricultural sustainability assessment towards environmental issues, and the broader business implications for sustainability assessment, strategy and policy. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment
    August 31, 2016   doi: 10.1002/bse.1928   open full text
  • The Impact of Board Structure on Corporate Social Responsibility: A Temporal View.
    Jeremy Galbreath.
    Business Strategy and the Environment. August 31, 2016
    Time plays an important role in corporate social responsibility (CSR) decisions. In the context of time and the boardroom, the consideration of CSR can be affected by board structure. For example, because of considerable short‐term pressures, this study posits that insiders on the board are less likely to prioritize the longer‐term time horizons needed to affect CSR. Following this perspective, a hypothesis is put forth that insiders generally have temporal orientations that are more short term in nature and that they therefore have a negative effect on CSR. A study of 300 of Australia's largest firms confirmed this hypothesis. However, when inside director compensation linked to environmental and social metrics and inside director CSR training are introduced as moderating variables, their interactive effects lead to positive results: both positively moderate the negative insider–CSR relationship in environmental and social dimensions. The study contributes to a temporal view of boards of directors, as well as to corporate governance and CSR. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment
    August 31, 2016   doi: 10.1002/bse.1922   open full text
  • Sustaining Competitive Advantage Through Corporate Environmental Performance.
    Prayag Lal Yadav, Seung Hun Han, Hohyun Kim.
    Business Strategy and the Environment. August 31, 2016
    This research investigates the relationship between a firm's environmental efforts and the sustainability of its competitive advantage by analyzing the effects of change in firm environmental performance on the persistence of profitability growth. We find that environmental resources allow a firm with superior financial performance to sustain its competitive advantage, and also complement the efforts of a poorly performing firm to hasten recovery from inferior financial performance. Our findings further indicate that firms attain such positive effects through enhanced profit margins resulting from improved environmental performance. Additionally, we observe that a corporate strategy of improving environmental performance demonstrates management's responsibility to maximize the shareholder wealth of a well‐performing firm. The results provide valuable insights to align environmental activities towards developing unique resources for sustaining the competitive advantage. The study provides an empirical support for creating economic value by benefiting the environment. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment
    August 31, 2016   doi: 10.1002/bse.1921   open full text
  • Sustainable Entrepreneurship and B Corps.
    Wendy Stubbs.
    Business Strategy and the Environment. August 31, 2016
    Sustainable entrepreneurship contributes to solving social and environmental problems through the means of successful for‐profit businesses. This paper contributes to understanding how sustainable entrepreneurship is implemented by exploring an emerging new form of business, ‘B Corps’, that employs market tactics to address social and environmental issues. Through interviewing 14 B Corps, the exploratory research study found that B Corps treat profit as a means to achieve positive societal ends, they regard the B Corp model as a tool for change, the B Corp model provides a common collective identity for internal and external validation, they are focused on societal impact rather than maximizing profits and they attempt to legitimate this form of sustainable entrepreneurship by influencing the business community and government officials. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment
    August 31, 2016   doi: 10.1002/bse.1920   open full text
  • Gender Diversity on Boards and Firms’ Environmental Policy.
    Ji Li, Fuqiang Zhao, Silu Chen, Wanxing Jiang, Tao Liu, Shengping Shi.
    Business Strategy and the Environment. August 31, 2016
    This paper tests the relationship between gender diversity on boards and firms’ environmental policy. Based on prior research, we predict that gender diversity on boards of directors should have a positive relationship with firms’ environmental policy. Moreover, firm character in terms of pollution creation likelihood moderates the relationship between gender diversity on boards and firms’ environmental policy. Analyzing data from 865 publicly listed firms in the United States, we found direct and significant empirical evidence for our predictions. According to the findings, we highlight the importance of gender diversity for the development of good firm environmental policy as well as for the improvement of corporate governance. Moreover, the more likely firms in a given industry are to cause environmental pollution, the more salient will be the beneficial effect of gender diversity on boards on firms’ environmental policy in the industry. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment
    August 31, 2016   doi: 10.1002/bse.1918   open full text
  • Fostering Stakeholder Engagement: The Role of Materiality Disclosure in Integrated Reporting.
    Marco Fasan, Chiara Mio.
    Business Strategy and the Environment. June 29, 2016
    This paper studies the determinants of materiality disclosure among International Integrated Reporting Council (IIRC) Pilot Program companies implementing the IIRC Framework. In other words, it studies which variables influence the way in which such companies provides information about their materiality determination process. In order to test our hypotheses we performed a number of statistical analyses on a unique hand‐collected dataset including IIRC and non‐IIRC Pilot Program companies for the 2012 and 2013 fiscal years. Our results indicate that industry and some firm‐level characteristics (board size and diversity) do play a significant role in the determination of materiality disclosure, whereas the legal environment in which companies operate does not. Also, we found that IIRC Pilot Program companies disclosed more information about materiality than their competitors that did not join the program. This paper provides interesting insights for policy makers (in particular, the IIRC) and extends previous academic literature on integrated reporting. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment
    June 29, 2016   doi: 10.1002/bse.1917   open full text
  • The Consolidation of the ESG Rating Industry as an Enactment of Institutional Retrogression.
    Emma Avetisyan, Kai Hockerts.
    Business Strategy and the Environment. June 29, 2016
    The socially responsible investing (SRI) movement has been aiming to create lasting institutional change by infusing the investment sector with new norms and values. Environmental, social and governance (ESG) rating agencies have emerged in response to the needs of SRI actors for reliable data on the social performance of firms. Since 2005, the ESG rating industry has witnessed a number of national and cross‐border consolidations. Based on a set of 37 interviews and secondary data, the paper explores the driving forces behind this consolidation as well as its impact. Our focus is on four ESG rating agencies, based in the United States, the United Kingdom, France and Switzerland. We conclude that in effect consolidation has at least partially resulted in institutional retrogression, whereby the traditional norms and values have reaffirmed their primacy, thereby somewhat negating the institutional change sought by the SRI movement. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment
    June 29, 2016   doi: 10.1002/bse.1919   open full text
  • Environmental Business–NGO Partnerships in Nigeria: Issues and Prospects.
    Uwafiokun Idemudia.
    Business Strategy and the Environment. May 24, 2016
    A number of insightful efforts have explored the nature of business–NGO partnerships and their associated outcomes for sustainable development. While some of these works have helped to clarify the benefits of such partnerships, and the different strategies NGOs can adopt in their interaction with business, others have identified the conditions necessary for a successful partnership. However, the question of how the different strategies adopted by NGOs in their engagement with business interact has remained relatively unexamined. Drawing on an environmental business–NGO partnership for sustainable development in Nigeria, this paper confirms the existence of a creative tension between the different NGOs’ strategies. This creative tension affects the nature of the environmental partnership and performs three main functions. These are an enabling function, a discipline function and a critical distance function. The article concludes by considering the theoretical and practical implications for business–NGO partnerships as a vehicle for sustainable development in developing countries. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment
    May 24, 2016   doi: 10.1002/bse.1915   open full text
  • Waste Livelihoods Amongst the Poor – Through the Lens of Bricolage.
    Diane Holt, David Littlewood.
    Business Strategy and the Environment. February 03, 2016
    This paper examines two social enterprises and 25+ informal economy micro‐entrepreneurs in Kenya who utilize waste materials to generate income, considered through the conceptual lens of bricolage. Waste materials can all be considered as sources of free or discounted materials that in resource‐constrained and poor communities might be leveraged to generate income in the absence of employment. This paper explores three key themes that emerge from the research findings, namely the various strategic dimensions of the cases, the networks and social capital they leverage and how these livelihood models relate to various dimensions of bricolage such as improvisation, making do and the process of ‘fiddling’ or recombining resources. The findings also suggest that differing waste livelihoods have different rates of return, or profitability, and differing input requirements of capital, skills and knowledge. The paper also stresses the role of boundary spanning organizations such as NGOs and hybrid/social enterprises. © 2016 The Authors. Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd.
    February 03, 2016   doi: 10.1002/bse.1914   open full text
  • What We Know About Environmental Policy: An Inductive Typology of the Research.
    Elisabeth Albertini.
    Business Strategy and the Environment. December 30, 2015
    Environmental performance is a multidimensional concept that is difficult to measure since it concerns the pollution generated by companies, their energy consumption and their different environmental policies. Academic research has used objective and/or non‐objective indicators to measure this performance, dealing with both its managerial and measurement dimensions. This paper provides an inductive typology of the academic work concerning environmental policy through a computerized content analysis of 151 articles from 1992 to 2014 related to the management and measurement of environmental performance. The results highlight four major themes around which the academic research is organized: the relationship between environmental and financial performance, environmental performance under stakeholder engagement and institutional pressures, the strategic management of environmental performance, and increasing awareness of the sustainable development issue. Environmental performance research has evolved from a quantitative towards a more managerial dimension, highlighting the integration of performance within the management of a corporate business strategy. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    December 30, 2015   doi: 10.1002/bse.1913   open full text
  • Does Size Matter? Evaluating Corporate Environmental Disclosure in the Australian Mining and Metal Industry: A Combined Approach of Quantity and Quality Measurement.
    Ki‐Hoon Lee.
    Business Strategy and the Environment. December 30, 2015
    There are an increasing number of companies in the mining and metals sector disclosing environmental sustainability information in their annual reports, sustainability reports and corporate internet web pages. However, there is ongoing debate about the relationship between the quantity and the quality of environmental disclosure. That is, does an increase in number equate to an increase in quality? This study investigates the relationship between the quantity and the quality of environmental disclosure reports. Using content analysis, we examine the environmental disclosure of 55 Australian mining and metal companies which are listed among the Australian Securities Exchange's (ASX) Top 100 mining and metal sector companies. We find that the size of firms influences both the quantity and the quality of corporate environmental disclosure. That is, we find that market capitalization is positively and significantly correlated to the quantity (number of words) and the quality of disclosure. We also confirm that there is a very highly significant, positive correlation between quantity (number of words) and quality of environmental disclosure. In order to investigate any differences between the top performing group and the bottom performing group in terms of environmental disclosure quality, further analysis also confirms that there is a positive relationship between the quantity and the quality of environmental disclosure. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    December 30, 2015   doi: 10.1002/bse.1910   open full text
  • Environmental Upgrading of Developing Country Firms in Global Value Chains.
    Mohamed Akli Achabou, Sihem Dekhili, Mohamed Hamdoun.
    Business Strategy and the Environment. December 30, 2015
    While the strategic management literature on corporate social responsibility (CSR) is abundant, it tends to consider the context of developed countries, with a focus on certain specific issues such as the strategic behaviour of firms with regard to sustainable development and the economic benefits of CSR practices. The present study examines the influence of western organizations on responsible corporate behaviour in developing countries, an issue that has been somewhat neglected in the existing academic literature. In particular, it explores the environmental upgrading of developing country firms in global value chains. This research, conducted with the analytic hierarchy process (AHP) method, involves 24 Tunisian olive oil companies. The findings indicate that exporting companies have indeed benefited from environmental upgrading, but, because of the cooperation strategy adopted by leading western firms (imposition of standards) and the absence of financial and technical assistance, the extent of environmental upgrading remains limited. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    December 30, 2015   doi: 10.1002/bse.1911   open full text
  • Greenwashing Revisited: In Search of a Typology and Accusation‐Based Definition Incorporating Legitimacy Strategies.
    Peter Seele, Lucia Gatti.
    Business Strategy and the Environment. November 24, 2015
    Is greenwashing a concept describing companies using misleading communication or is it co‐constructed in the eye of the beholder? By discussing the literature, we find that existing definitions of greenwashing overemphasize the strategic intention to mislead and do not incorporate unjust allegations. Then, by combining signaling theory with legitimacy theory, we frame the communication process of the greenwashing accusation and the emergence of a negative narrative caused by the accusation and its effect on legitimacy. Hence, in this paper we argue that greenwashing epistemologically is constituted in the eye of the beholder, depending on an external accusation. Following this view, the greenwashing accusation is understood as a distortion factor altering the signal reliability of green messages. Based on our conceptual analysis, we provide a conceptual framework introducing a new typology of case‐based greenwashing (greenwashing, false greenwashing, potential greenwashing and no greenwashing) and the effects of these types on corporate legitimacy. Finally, we propose a revised definition of greenwashing as co‐creation of an external accusation toward an organization with regard to presenting a misleading green message. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    November 24, 2015   doi: 10.1002/bse.1912   open full text
  • Extending the Boundaries: An Assessment of the Integration of Extended Producer Responsibility Within Corporate Social Responsibility.
    Garth Hickle.
    Business Strategy and the Environment. November 17, 2015
    The paper examines how extended producer responsibility (EPR) as an environmental policy approach and, more broadly, product management strategies are characterized within corporate social responsibility (CSR). The author summarizes the key concepts and arguments for sustainable product management strategies with an emphasis on the collection of discarded products at end of life, and identifies primary tools for recognizing and advancing product management strategies within CSR such as sustainability reporting and product standard and certification programs. The article analyzes 121 CSR reports for references to EPR and, more broadly, end‐of‐life management strategies for discarded products. It concludes with recommendations as to how CSR practices can more effectively recognize product management strategies as well as how EPR policy can be enhanced to further embed product end‐of‐life management strategies and activities within the CSR activities of firms. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    November 17, 2015   doi: 10.1002/bse.1908   open full text
  • Willingness to Pay for Green Products in Air Travel: Ready for Take‐Off?
    Gieri Hinnen, Stefanie Lena Hille, Andreas Wittmer.
    Business Strategy and the Environment. November 17, 2015
    We examine the willingness to pay (WTP) for green products in air travel. Green products in aviation are supplementary services, which are sold on top of the travel service (e.g. carbon offsets, organic on‐board food). We identify a set of potential green products in aviation and report the preferences for additional airline services of 811 Swiss air travellers using an adaptive choice‐based conjoint survey. We find that 20% of those passengers who are interested in purchasing supplementary services show a considerable WTP for green products. The green segment differs from the regular segment only in terms of behavioural features, not in terms of demographic or socio‐economic characteristics. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    November 17, 2015   doi: 10.1002/bse.1909   open full text
  • Environmental Policies for Evaluating Suppliers' Performance Based on GRI Indicators.
    Andrea Chiarini.
    Business Strategy and the Environment. September 17, 2015
    Many companies use a performance measurement system (PMS) to evaluate their suppliers' environmental performance (SEP). To do this a company can establish its own set of measures or adopt indicators borrowed from specific standards and guidelines such as the Global Reporting Initiative (GRI). However, the results of a literature review indicate that the weights of the different environmental performance indicators within an overall SEP rating are unclear. The aim of this paper is to understand what the environmental policies adopted by European manufacturing companies to evaluate their suppliers really are. In order to reach this objective, a quantitative model based on multiple linear regression has been developed. The model correlates different environmental aspects taken from the GRI set of indicators with the overall SEP rating. Interestingly, results show that performances on aspects such as transport and ISO 14001 certification do not count towards the final ranking, whereas compliance with laws and regulations is the cornerstone of the evaluation of the supplier. Other performance indicators can in some ways be linked to compliance with laws and regulations. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    September 17, 2015   doi: 10.1002/bse.1907   open full text
  • Circular Business Model Innovation: Inherent Uncertainties.
    Marcus Linder, Mats Williander.
    Business Strategy and the Environment. September 17, 2015
    Circular business models based on remanufacturing and reuse promise significant cost savings as well as radical reductions in environmental impact. Variants of such business models have been suggested for decades, and there are notable success stories such as the Xerox product–service offering based on photocopiers that are remanufactured. Still, we are not seeing widespread adoption in industry. This paper examines causes for reluctance. Drawing on a hypothesis‐testing framework of business model innovation, we show that circular business models imply significant challenges to proactive uncertainty reduction for the entrepreneur. Moreover, we show that many product–service system variants that facilitate return flow control in circular business models further aggravate the potential negative effects of failed uncertainty reduction because of increased capital commitments. Through a longitudinal action research study we also provide a counterexample to many of the challenges identified in previous studies, which could be overcome in the studied case. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    September 17, 2015   doi: 10.1002/bse.1906   open full text
  • Behavioral Effects of Sustainability‐Oriented Incentive Systems.
    Robert Huber, Bernhard Hirsch.
    Business Strategy and the Environment. September 17, 2015
    Companies increasingly extend their existing incentive systems by integrating several sustainable performance indicators. Although these ‘sustainability‐oriented’ incentive systems clearly highlight which business objectives should be attained, little is known about the effects that these incentive systems have on employee behavior. Based on signaling theory, social identity theory and a person–organization fit (PO‐fit) perspective, we assume positive relations between sustainability‐oriented incentive systems and employee attraction, motivation and cooperation. Furthermore, we examine whether these relations are moderated by personal attitudes toward corporate sustainability activities as well as the underlying mechanisms at the moderation (mediated moderation). Our experimental results (with students as future employees) do not give support for a general positive relation between sustainability‐oriented incentive systems and employee behavior. However, our data show that a person's attitude toward corporate sustainability activities moderates the link between sustainability‐oriented incentive systems and employee behavior. Additionally, we find PO‐fit perceptions to mediate the interaction effects. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    September 17, 2015   doi: 10.1002/bse.1905   open full text
  • Measuring Corporate Environmental Performance: A Methodology for Sustainable Development.
    Elena Escrig‐Olmedo, María Jesús Muñoz‐Torres, María Ángeles Fernández‐Izquierdo, Juana María Rivera‐Lirio.
    Business Strategy and the Environment. August 22, 2015
    Assessing corporate environmental performance (CEP) that is both comprehensive and consistent with sustainable development both for society and companies, while at the same time taking heed of the facts and interests of each stakeholder, is not a simple feat. Due to the multidimensional character of the sustainability concept, several questions must be considered in the evaluation process: (i) the qualitative nature of indicators and the complexity of developing a synthetic index; (ii) the difficulty of choosing properly statistical techniques for aggregation and (iii) the difficulty of introducing stakeholders’ preferences in the assessment models. This paper is an attempt to address this challenge by developing a framework for the assessment of CEP, based on the application of a fuzzy multi‐criterion decision‐making (MCDM) method. To achieve positive scores in a CEP assessment, an organization should be strategically committed and engage in environmental management and governance structures that are translated into good results in terms of both engagement and operational performance. Unless such premises are explicitly incorporated into the assessment criteria, the results would reveal that the CEP measurement could not be brought into a line with an earnest ambition of achieving true sustainable development. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    August 22, 2015   doi: 10.1002/bse.1904   open full text
  • Commitment to Sustainability in Small and Medium‐Sized Enterprises: The Influence of Strategic Orientations and Management Values.
    Johan Jansson, Jonas Nilsson, Frida Modig, Gabriella Hed Vall.
    Business Strategy and the Environment. August 22, 2015
    Ecosystem degradation and social sustainability have become important issues in the corporate sphere during the last few decades. However, research discussing corporate social responsibility and related concepts has often focused on larger companies, sometimes neglecting the specifics of small and medium‐sized enterprises (SMEs). The main purpose of this study is to examine the relationships between two common strategic orientations, market orientation (MO) and entrepreneurial orientation (EO), in relation to sustainability commitment, sustainability practices and management values in SMEs. Questionnaire responses from 450 Swedish SMEs were analyzed, confirming the influence of MO, EO and sustainability practices on commitment to sustainability, implying that firms committed to sustainability see both market and entrepreneurial advantages of sustainability. The results also show that different parts of MO and EO differ in importance for commitment to sustainability among SMEs. Implications concern the importance for firms and policymakers to work with sustainability issues using both internal and external perspectives. © 2015 The Authors. Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd
    August 22, 2015   doi: 10.1002/bse.1901   open full text
  • Munificence, Dynamism, and Complexity: How Industry Context Drives Corporate Sustainability.
    Hongquan Chen, Saixing Zeng, Han Lin, Hanyang Ma.
    Business Strategy and the Environment. August 22, 2015
    Does external industry context exert an influence on the development of corporate sustainable development? In keeping with the view that environmental responsibility generates new and competitive resources for firms, we posit that three distinct industry contextual characteristics, namely munificence, dynamism, and complexity, can influence corporate environmentally responsible behaviors. Our conceptual framework is supported by empirical evidence that draws on a sample of 746 Chinese listed firms in manufacturing sectors. Our findings suggest that dynamism increases the likelihood of firms behaving in environmentally responsible ways, whereas complexity decreases this likelihood. The relationships between dynamism and environmental responsibility are stronger in firms with low levels of organizational slack. Moreover, we find that resource‐abundant firms are more likely to behave responsibly toward the natural environment in a high‐munificence industry context. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    August 22, 2015   doi: 10.1002/bse.1902   open full text
  • Too Little or too much? Exploring U‐shaped Relationships between Corporate Environmental Performance and Corporate Financial Performance.
    Christoph Trumpp, Thomas Guenther.
    Business Strategy and the Environment. August 22, 2015
    Despite 40 years of research on the relationship between corporate environmental performance (CEP) and corporate financial performance (CFP), there is no generally accepted theoretical framework that explains the contradictory results that have emerged. This unsatisfactory status may be attributed to the fact that linear models dominate the research. Based on an international sample of 2361 firm‐years from 2008 to 2012, we find empirical evidence of a non‐linear, specifically a U‐shaped, relationship between carbon performance and profitability as well as between waste intensity and profitability. The same result holds for the relationship between carbon performance and stock market performance, but solely for manufacturing industries. Our empirical findings provide evidence for the theoretical framework of a ‘too‐little‐of‐a‐good‐thing’ (TLGT) effect, which indicates that the type of relationship (positive, negative) depends on the level of CEP. More precisely, there is a negative CEP–CFP relationship for companies with low CEP and a positive association for high CEP. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    August 22, 2015   doi: 10.1002/bse.1900   open full text
  • Engaging Employees in Sustainable Development – a Case Study of Environmental Education and Awareness Training in Hong Kong.
    Michelle Man Suet Law, Peter Hills, Billy Chi Hang Hau.
    Business Strategy and the Environment. July 31, 2015
    Environmental education and awareness training can help to develop and encourage a transition to a greener corporate culture. A series of environmental education and awareness training programmes of The Hongkong and Shanghai Banking Corporation Limited (HSBC) (Hong Kong) was used as a case study to assess how learning transfers through nature‐based environmental education and awareness training and to investigate the possible outcomes of providing nature‐based training to employees. Evaluation of the training outcomes, in terms of changes in employees’ environmental knowledge, attitudes and behaviour, was surveyed by using retrospective post‐ and then‐test questionnaires. Results showed that employees who joined these programmes gained knowledge and changed their values and behaviour towards the environment significantly. The study also indicated the establishment of trust in and satisfaction with the organization among employees through the training, which in turn promoted employees’ organizational commitment towards corporate sustainability. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    July 31, 2015   doi: 10.1002/bse.1903   open full text
  • How to Green the red Dragon: A Start‐ups' Little Helper for Sustainable Development in China.
    Henk J. Steinz, Frank J. Van Rijnsoever, Frans Nauta.
    Business Strategy and the Environment. July 31, 2015
    This article qualitatively identifies and explains the barriers that foreign cleantech start‐ups can encounter when attempting to enter the Chinese market, as well as the possible strategies that can help overcome these barriers. We base our analysis on interviews with Chinese and foreign entrepreneurs and facilitators. To structure the analysis of such barriers, we use the components of the entrepreneurial ecosystem. We then explain the barriers using institutional theory. We demonstrate that they are caused either by the regulations in China or by the difference between Chinese and Western logics. We further recommend that cleantech entrepreneurs come prepared to China, remain flexible, associate themselves with reputable partners and take advice from those familiar with business in China. Cultural–cognitive barriers might be overcome by integrating the communities of foreign and Chinese start‐ups. Regulative barriers can be removed by the Chinese Government, but this conflicts with the logic of state control. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    July 31, 2015   doi: 10.1002/bse.1899   open full text
  • Communicating Corporate Social Responsibility to Internal Stakeholders: Walking the Walk or Just Talking the Talk?
    Margaret Brunton, Gabriel Eweje, Nazim Taskin.
    Business Strategy and the Environment. May 18, 2015
    As organizations recognize the need to engage in CSR and sustainability initiatives, it is integral to success to communicate that they are doing so. However, the research focus is more often on communicating with external stakeholders to draw attention to corporate responsibility initiatives. Internal stakeholders as employees are not researched as often, despite their integral role in communicating the organization's CSR vision and sustainability as they interact with external stakeholders. In order to explore employee perceptions of CSR communication, a two‐phase mixed‐method study was undertaken, including semi‐structured interviews with 20 CSR managers in NZ organizations to provide content to inform an online questionnaire survey to seek feedback from employees in these same organizations. This paper contributes to research on internal stakeholders in revealing the influence of the perceived value congruence between managers and employees in influencing internal stakeholder perceptions of CSR and sustainability initiatives. The findings have implications for public policy, enhancing organizational communication, the need for authenticity and managerial recognition of their role in facilitating employee commitment to CSR initiatives. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    May 18, 2015   doi: 10.1002/bse.1889   open full text
  • Firms’ Response to Climate Change: The Interplay of Business Uncertainty and Organizational Capabilities.
    Su‐Yol Lee, Robert D. Klassen.
    Business Strategy and the Environment. May 09, 2015
    With climate change emerging as one of the most important issues increasing uncertainty in the business circle, firms have shown different reactions. Why do firms differ in adopting and implementing carbon management practices (CMPs) in response to the global warming issue? This paper attempts to explore this question with particular attention to two factors: external business uncertainty and internal organizational capabilities. This study investigated whether business uncertainty, organizational learning and lean production capabilities influenced the adoption and implementation of CMPs as well as examining how organizational capabilities moderate the relationships between business uncertainty and the level of CMPs. The results of a cross‐sectional survey and hierarchical regression analyses indicate that perceived business uncertainty decreases the adoption of CMPs, organizational learning and lean production capabilities strongly facilitate the adoption and implementation of CMPs, and lean production capability positively moderates the impacts of business uncertainty on the adoption of CMPs. This study provides guidance for managers and academics considering how to identify, design and manage the dimensions of a firm's practices in response to the global warming issue within the organization as well as with other organizations. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    May 09, 2015   doi: 10.1002/bse.1890   open full text
  • Sustainability Targets in Executive Remuneration: Targets, Time Frame, Country and Sector Specification.
    Karen Maas, Sanne Rosendaal.
    Business Strategy and the Environment. March 28, 2015
    Existing remuneration plans for CEOs still mainly focus on financial performance and do not necessarily promote sustainable value creation for their firms. By way of reaction to this, a growing number of academics and practitioners are acknowledging the need for the inclusion of sustainability targets in executive remuneration. This study examines the current status of the use of sustainability targets in executive remuneration specified by country, sector and targets. Based on a sample of 490 listed firms from 11 countries and different sectors, the use of targets related to sustainability in executive remuneration is assessed. The targets are specified by kind of target (short term and long term) and content of target (environmental, social or a combination of both). The results of this study show that (a) in 2010 on average 33% of the firms used sustainability targets in remuneration, (b) mainly the ‘dirty’ industries use targets, (c) the targets used are mainly short‐term targets and (d) they focus on social issues. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    March 28, 2015   doi: 10.1002/bse.1880   open full text
  • The Influence of Technology Differences on Corporate Environmental Patents: A Resource‐Based Versus an Institutional View of Green Innovations.
    Juan Alberto Aragon‐Correa, Dante I. Leyva‐de la Hiz.
    Business Strategy and the Environment. March 23, 2015
    This paper proposes that both the resource‐based view and institutional theory predict a positive relationship between the number of patented environmental innovations and non‐environmental innovations held by a firm, because they both are subject to the influence of similar factors. However, while the resource‐based view predicts that technological differences between the patented environmental innovations owned by a firm and those in the industry as a whole will positively affect the firm's environmental innovations, the institutional perspective predicts a negative relationship. Our results derive from a sample of 5537 environmental patents from 59 large companies in the electrical components and equipment industry worldwide, and show a positive relationship between patented environmental and non‐environmental innovations in a firm, but a negative influence on the number of the firm's patented environmental innovations resulting from differences between the firm's environmental technologies and those generally prevalent in the industry. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    March 23, 2015   doi: 10.1002/bse.1885   open full text
  • A Comparison of Regulatory Awareness and Green Supply Chain Management Practices Among Chinese and Japanese Manufacturers.
    Qinghua Zhu, Ying Qu, Yong Geng, Tsuyoshi Fujita.
    Business Strategy and the Environment. March 23, 2015
    Leading manufacturers in developed countries generally have high environmental awareness and implement proactive environmental management practices such as green supply chain management (GSCM). However, it is uncertain if smaller manufacturers in developed countries are more proactive than all manufacturers in developing countries. To understand this situation, we carried out surveys among small and medium‐sized Japanese manufacturers, leading Chinese manufacturers and traditional Chinese manufacturers. Statistical results show that leading Chinese manufacturers have the highest awareness of both domestic and international environmental regulations/policies, and implement all GSCM practices at the highest level. Leading Chinese manufacturers and Japanese manufacturers are aware of international environmental regulations/policies, but such awareness only motivates them to implement eco‐design practices. Traditional Chinese manufacturers have limited awareness of international environmental regulations/policies, but such awareness brings all types of GSCM practice. Such results can be helpful for different manufacturers in both developed and developing countries to develop suitable environmental strategies. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    March 23, 2015   doi: 10.1002/bse.1888   open full text
  • Planned or Emergent Strategy Making? Exploring the Formation of Corporate Sustainability Strategies.
    Friederike Neugebauer, Frank Figge, Tobias Hahn.
    Business Strategy and the Environment. March 13, 2015
    In strategy research, there is a consensus that strategy making resides on a continuum from planned to emergent where most strategies are made in a mixed way. Different contingency factors have been suggested to explain the factors that influence strategy making. Sustainability research seems to overlook most of this development and assumes instead that sustainability strategies are made in a purely planned way. We contribute to a better understanding of the role of different strategy making modes for sustainability in three ways. First, we point to the bias towards planned strategy formation in sustainability research. Second, we propose a new contingency factor to help explain sustainability strategy making based on the nature of the problem addressed. Third, we discuss strategy making for different types of sustainability problems. We argue that planned strategy making is expected for salient and non‐wicked problems while emergent strategy making is likely for non‐salient and wicked problems. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    March 13, 2015   doi: 10.1002/bse.1875   open full text
  • The Wicked Character of Sustainable Supply Chain Management: Evidence from Sustainability Reports.
    Johann Meckenstock, Ana Paula Barbosa‐Póvoa, Ana Carvalho.
    Business Strategy and the Environment. March 13, 2015
    Supply chains are changing their business paradigm as they strive for sustainability and not just for increasing profits. Sustainability, however, is a concept that is open to interpretation since it is based on societal and organizational values. Little is known about what companies actually mean when referring to sustainability, and how this contrasts with the understanding at different echelons of the supply chain. Diverging interpretations and translations of sustainability among stakeholders, termed wicked problems, affect the progress of sustainable supply chain management. This paper aims to contribute to closing the gap between our common sense expectations and the actual evidence from sustainability reports of how sustainability evolves from abstract ideas to operational practices across the supply chain. To this end, this study employs a computer‐aided content analysis of 142 corporate sustainability reports across 12 industries. Building on the findings, and using the lens of wicked problems, this paper provides guidance to practitioners on how to develop strategies that are effective across the whole supply chain. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    March 13, 2015   doi: 10.1002/bse.1872   open full text
  • Forest Certification and ISO 14001: Current State and Motivation in Forest Companies.
    Anni Tuppura, Anne Toppinen, Kaisu Puumalainen.
    Business Strategy and the Environment. March 13, 2015
    In this study, we explore the current state of specific corporate responsibility practices in the global forest sector. We compare the motivations for the leading forest industry companies to invest in certification from the Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC), and in the ISO 14001 environmental management system. For the empirical investigation, we use quantitative survey data collected from 60 of the world's leading forestry companies. This study's empirical results indicate that incentives for adopting forest certification are more often external rather than internal, and more market driven than regulation driven, which would suggest the dominance of extrinsic motivation. The results also indicate that the adoption of ISO 14001 certification represents a reactive strategic approach, emphasizing customer satisfaction as a key motivation. Motivations differ depending on the firm's business sector and the geographical location of its headquarters. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    March 13, 2015   doi: 10.1002/bse.1878   open full text
  • Customer Environmental Values and Their Contribution to Loyalty in Industrial Markets.
    Nora Mustonen, Heikki Karjaluoto, Chanaka Jayawardhena.
    Business Strategy and the Environment. March 13, 2015
    Concern over the effect of industries on the natural environment is growing on a multitude of levels. This study examines the effects of how perceptions of (a) environmental values, (b) green image and (c) perceived value of industrial customers influence their loyalty towards suppliers in existing relationships, and how the length of B2B relationships may moderate these linkages. A conceptual framework is developed and data are collected from a global sample (N =121) of B2B customers. We find that both green image and perceived value have a direct positive link with customer loyalty and that environmental values are positively linked to the green image of the supplier. Moreover, the effect of green image on loyalty is mediated by perceived value, with environmental values only indirectly linked with perceived value of the supplier. As the length of relationship increases, on one hand the positive relationship between green image and customer loyalty is strengthened, while on the other the positive relationship between environmental value and green image is weakened. Regardless of how environmentally aware the customer is, green image is a strong predictor of both perceived value and loyalty. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    March 13, 2015   doi: 10.1002/bse.1882   open full text
  • Do Women Leaders Promote Sustainability? Analyzing the Effect of Corporate Governance Composition on Environmental Performance.
    Christy Glass, Alison Cook, Alicia R. Ingersoll.
    Business Strategy and the Environment. March 13, 2015
    In this study, we investigate the impact women leaders have on the corporate environmental strategies of organizations. Using a dataset of all Fortune 500 CEOs and boards of directors for a ten‐year period, we examine several aspects of gender in leadership on environmental strategy. Specifically, we test the impact of women CEOs, the proportion of women on the BOD, the number of interlinks women board members hold, and the interactive and cumulative effects of women CEOs and gender diverse boards. Findings suggest that firms characterized by gender diverse leadership teams are more effective than other firms at pursuing environmentally friendly strategies. This study contributes to research on corporate governance and environmental performance by showing how the gender composition of leaders affects corporate practice. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    March 13, 2015   doi: 10.1002/bse.1879   open full text
  • Green Product Innovation: Where we are and Where we are Going.
    Rosa Maria Dangelico.
    Business Strategy and the Environment. March 13, 2015
    Green product innovation (GPI) is becoming more and more relevant for policy makers, companies and society as a whole. As a result, over the last few years the number of studies on GPI development has increased substantially, thus prompting the need to analyse and synthesize the results of these studies. With this aim, this study reviews the body of knowledge on the topic. In particular, a systematic review of the literature is conducted, guided by three main research questions. Specifically, this paper identifies the antecedents, the outcomes and the success factors for GPI development. 63 studies are included in the review. Results show that many factors drive the development of GPI, both internal and external to the firm. Among internal factors, the most important are the prospect of competitive advantage, cost reduction, market benefits, improved reputation and opportunities for innovation. Among external factors, the most important are environmental regulations – current and/or expected – and market demand. In terms of outcomes, this study provides evidence that the most relevant ones are cost savings, achievement of competitive advantage, increased market share, increased sales, increased turnover, higher profits, better reputation, increased exports and higher productivity. Finally, this study highlights that many factors can influence the successful development of GPI, such as top management commitment, building networks of collaborations as well as enhancing knowledge flows, both within and outside the firm, cross‐functional integration and development of resources and capabilities. This study provides important implications for companies, policy makers and scholars. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    March 13, 2015   doi: 10.1002/bse.1886   open full text
  • Green Practices and Organizational Design as Sources of Strategic Flexibility and Performance.
    Miguel Perez‐Valls, Jose Cespedes‐Lorente, Juan Moreno‐Garcia.
    Business Strategy and the Environment. March 04, 2015
    Green competences are dynamic capabilities based on practices (green practices), routines and structures that can be used to detect opportunities, make the most of them and use them to transform organizations. With this in mind, we explore the relationships between environmental management, organizational performance, and organizational processes and practices. We identify three key constructs related to green competences: (1) hybrid structures, (2) environmental best practices and (3) strategic flexibility, a key variable connecting structural design and green practices to organizational performance. We propose that the implementation of specific organizational structures characterized by the inclusion of market‐driven control practices within hierarchies (internal hybrids) could enhance firms' environmental responsiveness and deployment of green best practices. In addition, we suggest that green practices and structures are positively related to the development of strategic flexibility, driving above‐average returns in dynamic environments. To test these hypotheses, we use data from the European aviation industry. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    March 04, 2015   doi: 10.1002/bse.1881   open full text
  • Outcomes of Environmental Management Systems: the Role of Motivations and Firms’ Characteristics.
    Iñaki Heras‐Saizarbitoria, German Arana, Olivier Boiral.
    Business Strategy and the Environment. February 25, 2015
    This article analyzes the influence of the sources of motivation that lead companies to adopt environmental management systems (EMSs) on the outcomes of these systems. A set of hypotheses derived from an extensive review of the literature is analyzed using cluster analysis – in order to identify groups of companies – as well as correlation and regression analyses, with data obtained from a survey of 361 Spanish organizations that have environmental certification. The results reveal that, for the groups identified, companies from the holistic cluster (with high levels of both internal and external drivers) and from the internal focus cluster (with more intensive internal sources of motivation) secure greater benefits from the process of adopting an EMS. This article also sheds light on the influence on the outcomes of some variables that have been under‐researched, such as the economic resources invested in an EMS and whether or not the certified companies belong to a sector with high environmental pressure. The findings help to characterize the firms with environmental certification and may also help managers, policy makers and other stakeholders to anticipate the potential benefits of EMSs. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    February 25, 2015   doi: 10.1002/bse.1884   open full text
  • Sustainable Entrepreneurship: A Convergent Process Model.
    Frank Martin Belz, Julia Katharina Binder.
    Business Strategy and the Environment. February 25, 2015
    Sustainable entrepreneurship pursues a triple bottom line approach of economic, social and ecological goals. The main aim of this paper is to add to our understanding of the process of sustainable entrepreneurship. Since the field of sustainable entrepreneurship is in a nascent stage, we conduct a qualitative study. We employ a multiple case study design to build theory. Based on four case studies we develop a model, which describes the process of sustainable entrepreneurship, including six phases: 1) recognizing a social or ecological problem; 2) recognizing a social or ecological opportunity; 3) developing a double bottom line solution; 4) developing a triple bottom line solution; 5) funding and forming of a sustainable enterprise; 6) creating or entering a sustainable market. By developing a convergent process model with two pathways, we make theoretical contributions to the emerging fields of sustainable entrepreneurship and social entrepreneurship. A key finding is that the triple bottom line of ecological, social and economic goals is integrated sequentially, not simultaneously. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment.
    February 25, 2015   doi: 10.1002/bse.1887   open full text
  • Impact of Environmental Performance on Firm Value for Sustainable Investment: Evidence from Large US Firms.
    Prayag Lal Yadav, Seung Hun Han, Jae Jeung Rho.
    Business Strategy and the Environment. February 25, 2015
    This research examines the impact of environmental performance on firm value, applying the event study methodology to Newsweek’s ‘Green Rankings’ announcement of 2012 for large US firms. Specifically, it analyzes the impact of the absolute green score and green rank of firms on their performance in the stock market. We found that investors perceive the announcement as positive news, leading to significant positive standardized cumulative abnormal returns (SCARs). After controlling for industry‐ and firm‐specific effects, we observed that firms with repeated green rankings for enhancing environmental performance showed significantly higher SCARs than those with either reduced or unchanged environmental performance. In addition, the environmental impact score measuring environmental damage from a firm's operational activities was found to be the most influential factor in improving the firm's value. Our findings are beneficial to managers in allocating resources to different types of environmental initiative, and provide valuable insight for sustainable environmental investment. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    February 25, 2015   doi: 10.1002/bse.1883   open full text
  • Sustainable Purchasing in Food Retailing: Interorganizational Relationship Management to Green Product Supply.
    Olga Chkanikova.
    Business Strategy and the Environment. February 12, 2015
    Stakeholders’ demands for product sustainability redefine the focus of corporate purchasing strategies from the traditional concern with financial performance to considerations of ‘triple bottom line’ viability. This adds to the complexity of managing interorganizational relationships and poses a question regarding corporate ability to effectively leverage suppliers over environmental and social performance of supplied goods. Since it is not clear what type of purchasing relationship is more favorable for greening a product supply, the current paper aims to investigate how food retailers manage their relationships with suppliers in order to influence the environmental and social performance of procured goods and improve the availability of sustainably produced supply. The research is based on two case studies of Swedish supermarkets and supplementary semi‐structured interviews with Swedish, British and Danish supermarkets. The results of the study contribute to the existing body of academic knowledge in the field of sustainable supply chain management by developing a typology of sustainable purchasing relationships with detailed insights into the nature of collaborative practices, structure of incentives, sustainability ambition, and approaches to verification of compliance. The study has also revealed the dependence of sustainable purchasing relationships on the characteristics of the procurement context, namely the presence of well‐established sustainability certification schemes, perceived by purchaser's situation with availability of sustainability certified supply and purchaser's interpretation of the state of power dependence in relationships with suppliers. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    February 12, 2015   doi: 10.1002/bse.1877   open full text
  • Sustainability Management within Supply Chains – A Resource Dependence View.
    Nicole Luisa Schnittfeld, Timo Busch.
    Business Strategy and the Environment. February 12, 2015
    Proceeding from three basic concepts of resource dependence theory – organizational effectiveness, interdependence and external control – we conducted a multiple‐case study to investigate factors that facilitate and hinder sustainability management within supply chains. Our empirical observations highlight that focal firms do not necessarily transfer their own corporate sustainability agendas into control mechanisms for managing the sustainability of their suppliers. Based on this insight, we develop a new theory that explains how intra‐ and interorganizational sustainability management is affected by a firm's business case for promoting sustainability, control mechanisms, trade‐offs, trust and market liberalization. The theory offers new insights into drivers and barriers for effective interorganizational sustainability management, whereas previous theories could not fully explain the reasons for diverging sustainability management practices in supply chains. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
    February 12, 2015   doi: 10.1002/bse.1876   open full text
  • Sustainable Development in Supply Chain Management: The Role of Organizational Learning for Policy Implementation.
    Nelly Oelze, Stefan Ulstrup Hoejmose, Andre Habisch, Andrew Millington.
    Business Strategy and the Environment. December 29, 2014
    Implementing sustainable policies in supply chains is a significant challenge for businesses. Recent evidence has shown that failure to manage supply chains responsibly can have significant impacts on firms' reputation and financial performance. In this paper, we develop a conceptual framework, which focuses on organizational learning, and outline specific channels through which firms can generate learning processes and build appropriate capabilities to successfully implement social and environmental supply chain policies. Drawing on 57 in‐depth interviews from a cross‐sectional sample of seven UK and nine German companies, we empirically assess our conceptual framework in accordance with a grounded, in‐depth case study analysis approach. We find compelling evidence to suggest that organizational learning is an important factor for a successful implementation of sustainable supply chain management. Organizational learning is often established as a result of training, knowledge acquisition, stakeholder engagement and collaboration between intra‐organizational and inter‐organizational partners, including suppliers and NGOs. Nonetheless, our results also emphasize that firms often have few systematic processes through which organizational learning is developed, and that such learning processes are often ad hoc at best, which in turn has significant implications for the responsible supply chain practices. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    December 29, 2014   doi: 10.1002/bse.1869   open full text
  • Supply Chain Management as Private Sector Regulation: What does it Mean for Business Strategy and Public Policy?
    Daniel J. Fiorino, Manjyot Bhan.
    Business Strategy and the Environment. December 10, 2014
    The growing practice of environmental supply chain management by firms constitutes private sector regulation that is analogous in many ways to public sector regulation. Similarly to their public counterparts, private sector regulators set standards, apply standards, monitor for compliance, apply sanctions and require corrective action. Private sector regulation differs, however, in the source of authority, external oversight, analytical requirements, public participation and available sanctions. This article argues that supply chain management by firms goes beyond business objectives by creating positive environmental externalities for society, and that more systematic study of the similarities and contrasts between the two forms of regulation may provide valuable lessons for both. Further, it may be possible to increase the effectiveness of private sector regulation to achieve both public societal and private business goals. From a business perspective, supply chain management enables firms to strategically redefine their relationships with government, reduce uncertainty and promote goal‐oriented collaboration. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    December 10, 2014   doi: 10.1002/bse.1871   open full text
  • How Do Strengths and Weaknesses in Corporate Social Performance Across Different Stakeholder Domains Affect Company Performance?
    Kamalesh Kumar, Giacomo Boesso, Giovanna Michelon.
    Business Strategy and the Environment. October 31, 2014
    The existing research on corporate social responsibility (CSR) has largely focused on the positive aspect of corporate social performance (CSP) and company performance (CP) and ignored the relationship between actions that would qualify as negative CSP (or weakness in CSP) towards a stakeholder group and company performance. Using data from the KLD collected over a three‐year period, this study examines the relationship between both CSP weaknesses and strengths and CP across individual stakeholder domains. Results of the study suggest that strengths in CSP related to primary stakeholder domains are associated with superior company performance. However, this relationship is tenuous, at best, in the case of the secondary stakeholder domain. As for weaknesses in CSP, the results suggest that if a firm performs poorly in meeting the expectations of one or more stakeholders it is penalized in the form of poor performance. This finding generally holds true for both primary and secondary stakeholders. Implications of these findings for public policy and businesses planning to address social issues are discussed. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    October 31, 2014   doi: 10.1002/bse.1874   open full text
  • Implementation of responsible Procurement Management: An Institutional Perspective.
    Laura Maria Ferri, Nelly Oelze, André Habisch, Mario Molteni.
    Business Strategy and the Environment. October 31, 2014
    The role of the institutional context in the pattern of the implementation of responsible procurement management (RPM) has been object of very limited previous research, although it has been found that it affects the approach to both CSR and supply chain management. The article presents the results of an in‐depth comparative study drawing on 47 interviews with managers of 13 companies in Italy and Germany, which have been previously related to different national institutional settings. The analysis demonstrates that the perception of factors influencing RPM implementation differs between Italian and German companies, and suggests that the institutional context affects not only the overall CSR behavior of the company, but also its institutionalization into a specific function. Results show that the institutional context mainly determines the boundaries within which practitioners are able to operate, whereas the ability to effectively bring about changes in their activity mainly depends upon organizational environment. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    October 31, 2014   doi: 10.1002/bse.1870   open full text
  • Two are Better Than One: The Link Between Management Systems and Business Performance.
    Vera Ferrón Vílchez, Nicole Darnall.
    Business Strategy and the Environment. October 31, 2014
    Little is known about the complementary performance benefits associated with facilities’ combined use of both quality management systems (QMSs) and environmental management systems (EMSs), and how these performance benefits might differ from those associated with facilities’ use of only one of these management systems (or neither). We suggest that complementarities arise because each management system fosters the development of internal capabilities that facilitates the adoption and routine operationalization of the other, while maintaining differentiated goals that enhance strategic value. We examine these relationships using a sample of 2619 manufacturing facilities operating within six OECD countries, while controlling for self‐selection issues. Our findings support the idea of complementarity, in that facilities that adopt both QMS and EMS are more associated with positive business performance than facilities that adopt either a QMS or an EMS on its own, or no management system. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    October 31, 2014   doi: 10.1002/bse.1864   open full text
  • Corporate Ownership and Environmental Proactivity.
    Francesco Calza, Giorgia Profumo, Ilaria Tutore.
    Business Strategy and the Environment. October 31, 2014
    The present paper advances knowledge of the drivers of firms' proactive environmental strategies. In particular, it explores the relationship between different corporate ownership structures and firms' green proactivity, in order to see whether some types of shareholder act as a stimulating driver for firms' proactive environmental behaviors. The study examines the explanatory power of corporate governance issues, such as a firm's ownership structure, as potential determinants of companies' environmental proactivity. Attention is focused on the European firms included into the Carbon Disclosure Project questionnaire 2012. The results show that ownership structure matters in firms' environmental proactivity. In particular, firms with a higher percentage of state ownership present superior green proactivity, while ownership concentration appears negatively related to proactive environmental strategy. The paper offers theoretical and practical implications. It focuses attention on a still underdeveloped research area, namely organizations and their relationship with the natural environment, including corporate ownership as a driver of a company's proactive environmental strategy. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    October 31, 2014   doi: 10.1002/bse.1873   open full text
  • Analysis of Shared and Sustainable Value Creation of Companies Providing Energy Solutions at the Base of the Pyramid (BoP).
    Virgilio Panapanaan, Tytti Bruce, Terhi Virkki‐Hatakka, Lassi Linnanen.
    Business Strategy and the Environment. October 31, 2014
    This study was conducted to analyze the shared and sustainable value creation (SSVC) of 33 energy companies selling energy solutions at the base of the pyramid (BoP) markets. SSVC by selling energy technology solutions directed to address the cooking and lighting needs of BoP consumers were the main focus of analysis. Result showed that achieving profitability and affordability is affected by the kind of energy solution that is offered as well as the investment and level of commitment required. However, companies that fulfilled the profitable and affordable solutions were also able to deliver social and environmental sustainability benefits. Social sustainability benefits point to the ability of alleviating poverty by improving productivity or offering cost‐savings. Environmental sustainability benefits point to the energy savings. The findings show that inclusive business strategy is not necessarily required to reach the poor people profitably but a suitable business strategy depends on the type of energy solution. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    October 31, 2014   doi: 10.1002/bse.1866   open full text
  • How Do Environmental Violation Events Harm Corporate Reputation?
    H. L. Zou, R. C. Zeng, S. X. Zeng, Jonathan J. Shi.
    Business Strategy and the Environment. May 19, 2014
    This study, based on attribution theory, provides empirical evidence for how environmental violation events (EVEs) damage corporate reputation, using media reputation as a proxy. Hypotheses are developed to address the influences of violating firms’ past environmental behaviors and ownership on the reputational effect of EVEs. The results show that firms with a history of unfavorable behaviors (precedent environmental violation) are deemed by the media to be more culpable for adverse environmental events and consequently suffer more damage to their reputation, while for firms with a favorable environmental record (environmental awards and honors gained) the reputational harm of an EVE is alleviated to some extent. EVEs cause more reputational damage to foreign‐owned enterprises than to domestic‐owned firms. These findings reveal that certain company behaviors could exert an indirect effect on a firm's reputation by influencing public perception of later relevant behaviors, and imply a discriminatory treatment in a host country for foreign‐owned enterprises. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    May 19, 2014   doi: 10.1002/bse.1849   open full text
  • Do Customers Affect the Value Relevance of Sustainability Reporting? Empirical Evidence on Stakeholder Interdependence.
    Max Goettsche, Tobias Steindl, Simon Gietl.
    Business Strategy and the Environment. May 19, 2014
    In spite of the strategic importance of sustainability reporting in current business practice and the resulting increase in research on its value relevance, studies accounting for stakeholder interdependence are scarce. On the basis of the instrumental stakeholder theory, we investigate whether customers have an impact on the value relevance of sustainability reporting. Using a sample of US listed firms, we show that the value relevance of sustainability reporting is affected by customer profile differences, thereby confirming customer–shareholder interdependence. However, customer profile effects are only predominant if firms' profitability levels are low and disappear as profitability increases. Overall, our findings provide a more nuanced understanding of the value relevance of sustainability reporting. Therefore, we offer managers fine‐grained guidance for value relevant sustainability reporting. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    May 19, 2014   doi: 10.1002/bse.1856   open full text
  • Environmental Responsibility and Firm Performance: The Application of an Environmental, Social and Governance Model.
    Ki‐Hoon Lee, Beom Cheol Cin, Eui Young Lee.
    Business Strategy and the Environment. May 19, 2014
    This paper investigates the way in which environmental responsibility impacts on corporate financial performance, measured by return on equity (ROE) and return on assets (ROA). Using a sample of Korean firms covering the period 2011–2012, and employing two different test methods, namely the OLS and 2SLS methods, we show that the relationships between environmental responsibility performance and firms’ ROE and ROA are positive and statistically significant. However, we show that research and development (R&D) intensity (expenditure) does not affect either environmental responsibility or corporate financial performance. The results of this analysis encourage further empirical analysis of the industries, as well as the use of more than one estimation method to determine environmental responsibility and corporate financial performance within firms. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    May 19, 2014   doi: 10.1002/bse.1855   open full text
  • Leaders and Laggards in Environmental Innovation: An Empirical Analysis of SMEs in Europe.
    Angela Triguero, Lourdes Moreno‐Mondéjar, María A. Davia.
    Business Strategy and the Environment. May 09, 2014
    The main purpose of this article is studying the factors influencing eco‐innovative intensity in the European SMEs. Building upon the 'innovation triangle model', business competences, environmental orientation and network involvement are considered as the main determinants of 'greenness' of innovation in a sample of 3852 SMEs. Four categories of eco‐innovators (leaders, followers, loungers and laggards) are identified, and their profiles/driving factors are described using a generalized ordinal logistic model. Our results confirm that the increasing demand for green products and the adoption of eco‐organizational innovation affect positively the level of environmental innovation, while technological lock‐ins have the opposite effect across all categories. Neither leaders nor laggards are influenced by environmental policies. Small firms and those who give importance to financial constraints tend not to achieve upper categories, while valuing technological capabilities, market power and networks are crucial determinants of being in upper categories of eco‐innovation intensity. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    May 09, 2014   doi: 10.1002/bse.1854   open full text
  • Environmental Policy in the Nordic Wood Product Industry: Insights Into Firms’ Strategies and Communication.
    Tarmo Räty, Anne Toppinen, Anders Roos, Maria Riala, Anders Q. Nyrud.
    Business Strategy and the Environment. May 05, 2014
    The purpose of our study is to explore how companies operating in the Nordic wood products value chains currently use environmental performance measures in their environmental policy and communication with stakeholders. Apart from the regularly‐used environmental management certificates, the ability of wood material to store carbon and the use of sustainable forest management certificates open up interesting strategic options for firms in the implementation of their environmental policy. The primary was collected through thematic managerial interviews in 2011 from 37 companies in Finland, Sweden and Norway, of varying size, roles in the value chain, conditions for green business practices and exports. Forest certification and environmental management systems were frequently used, but managers did not always perceive them to be useful, particularly for raising environmental awareness at the final consumer level. Nevertheless, the general attitude towards using environmental performance measures was seen as positive. Companies with a business‐to‐business orientation were the most proactive in terms of environmental communication, whereas companies in consumer markets were more reactive. The key stakeholders targeted for environmental communication were value chain partners and the authorities, and only to a lesser degree employees and environmental non‐governmental organisations. The key strategic role of environmental management and communication appeared to be securing the firms against negative environmental claims. The Nordic wood industry could improve their communication if the strategic orientation is shifted from the forest certification to the use of generic eco‐labels, and most of all, to the adoption of quantitative measures like carbon footprints and environmental product declarations. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment.
    May 05, 2014   doi: 10.1002/bse.1853   open full text
  • Environmental Innovations and Internationalization: Theory and Practices.
    Maria Chiarvesio, Valentina De Marchi, Eleonora Di Maria.
    Business Strategy and the Environment. April 04, 2014
    Based on original data on Italian firms specializing in medium‐ and low‐tech industries, we study the relationship between firms’ upstream and downstream internationalization and their propensity to introduce products or processes that reduce environmental impact. Preliminary evidence suggests that geography plays an important role in green firms’ activities and supply chains. More precisely, results suggest that firms that outsource to and rely on non‐local suppliers are less likely to engage in environmental innovations. Moreover, we verify that firms engaged in export activities play a similar and negative role, regardless of the export intensity and typology of foreign markets (i.e. developed versus emerging). Tapping global flows of knowledge by being a part of a multinational group positively spurs the development of green innovations, as for FDIs. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    April 04, 2014   doi: 10.1002/bse.1846   open full text
  • A Fresh Approach to Context Influence, Development and Performance in Environmental Management.
    Josep Llach, Maria Del Mar Alonso‐Almeida, Antoni García‐Castellví, Llorenç Bagur‐Femenias.
    Business Strategy and the Environment. April 04, 2014
    Respect for the environment has rapidly gained importance in the context of firms, regardless of their pollution levels. Most of the existing research has related to the most polluting sectors and has been limited to the effect that the adoption of cleaner practices has on performance, primarily in terms of operations, financial performance and competitiveness. This paper expands the research towards a more complete picture of environmental management by examining context, development and performance to understand how other factors can influence the development of cleaner practices. In addition, we focus our research on the service sector. In our analysis, we differentiated between the affiliation and size of the studied companies to better understand their specificities. Based on a sample of 374 restaurants, the results show the importance of the influence of institutions and the limited influence of competitors in encouraging firms to adopt a strategic, clean approach, especially for the smallest firms. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    April 04, 2014   doi: 10.1002/bse.1850   open full text
  • Corporate Environmental Strategies Towards Sustainable Development.
    Kjell Mårtensson, Karin Westerberg.
    Business Strategy and the Environment. April 04, 2014
    Many companies have adopted some form of environmental programme to manage their relationship with nature. However, a company's environmental achievements tend to be disconnected from its general operations; consequently, these achievements are ineffective. The purpose of this article is to employ a conceptual approach to explore ways to compose effective corporate environmental strategies. From a resource perspective, the flow of material, knowledge and experiences, relationships, communication, and cooperation and control are discussed as strategy aspects central to an effective environmental strategy. Using these five strategy aspects we show how three different strategies with different contents and directions can be assembled. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    April 04, 2014   doi: 10.1002/bse.1852   open full text
  • Integrating Strategic Carbon Management into Formal Evaluation of Environmental Supplier Development Programs.
    Yijie Dou, Qinghua Zhu, Joseph Sarkis.
    Business Strategy and the Environment. April 04, 2014
    Increasing global environmental pressures from regulators, markets and communities have caused focal companies in supply chains to recognize the significance of environmentally conscious management. Greener supply chains are part of this recognition. Environmental supplier development is a valuable and viable strategy for greening supply chains. However, low carbon management is rarely explored in supplier development. Further, formal tools and models for focal companies to evaluate environmental supplier development programs (ESDPs) considering low carbon management and their effect on supplier performance improvement are limited. To help address these gaps in the literature, this paper proposes a portfolio evaluation model for ESDPs that consider three types of supplier performance: traditional operational factors, traditional environmental factors and low carbon management factors. This model applies the fuzzy scoring method to measure the effect of ESDPs on supplier performance, and uses fuzzy DEMATEL to examine the cause–effect interrelationships among the ESDPs. Subsequently, a real world example is used to demonstrate the application of the portfolio model and provide insights into environmental supplier development evaluation, followed by discussions of case application results. This paper concludes with directions for further research. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    April 04, 2014   doi: 10.1002/bse.1851   open full text
  • Environmental Policies for Sustainable Development: An Analysis of the Drivers of Proactive Environmental Strategies in the Service Sector.
    Adolfo Carballo‐Penela, Juan Luis Castromán‐Diz.
    Business Strategy and the Environment. March 14, 2014
    This article examines the drivers of environmental proactivity in the service sector. Hypotheses were tested using multiple hierarchical regression analysis with data from a sample of 41 managers in Spanish environmental consulting companies. Results show statistically significant relationships between (1) managers’ attitude towards sustainable development, (2) positive short‐term firm performance and (3) the strategic attitude of environmental consulting firms and the adoption of proactive environmental strategies by the studied companies. This article is pioneering in the analysis of drivers of corporate proactive environmental strategies in the consultancy sector. The findings have practical implications for policy‐makers, investors and other agents interested in a better management of the environment. Economic incentives such as subsidies to environmental training programmes for managers can induce changes in cognitive components of managers’ attitudes. Education policies could also affect managers’ attitudes towards the environment. Companies may also encourage attitude change by providing their managers with financial assistance to receive environmental training. External assistance to develop a strategic attitude could be an interesting policy to encourage voluntary environmental initiatives. Finally, fiscal deductions, tax breaks or subsidies to those companies interested in managing the environment can be effective incentives for those firms facing a weak short‐term financial situation. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    March 14, 2014   doi: 10.1002/bse.1847   open full text
  • Has the CSR engagement of electrical companies had an effect on their performance? A closer look at the environment.
    María del Mar Miras‐Rodríguez, Amalia Carrasco‐Gallego, Bernabé Escobar‐Pérez.
    Business Strategy and the Environment. March 14, 2014
    Even though electrical companies attain a top ranking in the publication of CSR reports, they are often accused of 'green‐washing' due to their bad environmental reputation. The current economic crisis is testing their real CSR commitment more than ever, especially when this goes beyond its economic consequences. Based on a worldwide sample of electrical companies, we are going to study why companies are being socially responsible. We wish to know if it is due to the impact on the firms' performance or whether there are other motives (legitimation, improving their reputation) that lead companies to carry out these practices. We will also consider if it changes across the kind of CSR action considered. The results show that there is an economic justification beyond the socially responsible behaviour of the electrical companies. Additionally, most kinds of CSR action (community, diversity, corporate governance, product responsibility) are also carried out looking for economic rewards. However, the CSR actions oriented to the environment are mainly motivated by their need to improve their image and reverse their negative impact. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    March 14, 2014   doi: 10.1002/bse.1848   open full text
  • Relationship between Corporate Climate Change Disclosures and Firm Factors.
    Iordanis M. Eleftheriadis, Evgenia G. Anagnostopoulou.
    Business Strategy and the Environment. March 14, 2014
    As carbon regulation evolves and becomes specialized in addressing carbon reduction issues, stakeholders will demand that firms provide increased information regarding corporate climate change practices. This paper contributes to the international research that examines the relationship between environmental information disclosures and additional firm factors. To do so, we have conducted an empirical analysis of the relationship between the corporate climate change disclosure practices of firms listed in the Athens Stock Exchange and firm factors, such as size, profitability, leverage and activity sector. Our results indicate there is a significant positive relationship between size and increased corporate disclosures regarding climate change practices. However, no significant relationship is detected between profitability or leverage and corporate climate change disclosures. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    March 14, 2014   doi: 10.1002/bse.1845   open full text
  • Implementation of Sustainability Management and Company Size: A Knowledge‐Based View.
    Jacob Hörisch, Matthew P. Johnson, Stefan Schaltegger.
    Business Strategy and the Environment. March 14, 2014
    Implementing corporate sustainability strategies requires knowledge and application of sustainability management tools. While much progress has been made in developing such tools in both small and medium‐sized enterprises (SMEs) and large companies, the literature claims company size positively affects application. However, the role of knowledge as a mediating factor has not yet been investigated. Using the knowledge‐based view as a theoretical underpinning, this paper draws on empirical survey data from SMEs and large companies in Germany. It analyzes how company size affects the degree of knowledge and application of sustainability management tools. Even though the results reaffirm that SMEs know and apply significantly less tools, company size does not influence the share of tools applied once they are known. Thus, knowledge is identified as a key difference between SMEs and large companies as well as an important mediator to promote sustainability management. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    March 14, 2014   doi: 10.1002/bse.1844   open full text
  • SMEs and the Potential for A Collaborative Path to Environmental Responsibility.
    Kate V. Lewis, Sue Cassells, Hernan Roxas.
    Business Strategy and the Environment. March 04, 2014
    Globally, the potential for small and medium‐sized enterprises (SMEs) to collectively impact negatively on the environment is great. Therefore, the adoption, and maintenance, of environmentally responsible practices by this group of firms is especially critical. Studies of environmental practices successfully implemented by small firms have revealed that relationships with other firms, or other organizations, can contribute to greater awareness of the benefits of such activities and, therefore, enhance the possibility of environmental engagement. Collaborative relationships may provide opportunities for SMEs to overcome some of the barriers to implementing environmental initiatives associated with their size, and/or associated characteristics. This paper focuses on attitudes of SME owner‐managers to a variety of environmental issues (including regulation and voluntary standards), and to collaborating with other firms (in either a formal or informal sense). The data this paper draws upon are from two waves of an ongoing longitudinal survey of New Zealand SMEs. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    March 04, 2014   doi: 10.1002/bse.1843   open full text
  • A Cognitive Perspective on the Business Case for Corporate Sustainability.
    Kai Hockerts.
    Business Strategy and the Environment. March 04, 2014
    This paper proposes that a cognitive perspective on corporate sustainability and competitiveness might allow new insights into the question of the business case. The paper explores how respondents from 12 firms make sense of their firm's investments in corporate sustainability activities by analyzing the mental models evoked. The interviews showed that a business case perspective emerged as the dominant logic. A subsequent analysis of the content of the knowledge schemas that were elicited surfaced four dimensions of corporate sustainability induced competitive advantages: risk reduction, efficiency gains, brand building and new market creation. An analysis of the structure of these knowledge schemas revealed that respondents from firms with lower perceived sustainability performance drew on less differentiated and less integrated cognitive frameworks (focusing on risk and efficiency). Respondents from firms with higher perceived performance drew on more complex mental models to represent the links between corporate sustainability and competitiveness. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    March 04, 2014   doi: 10.1002/bse.1813   open full text
  • Environmentally Sustainable Development through Stakeholder Engagement in Developed and Emerging Countries.
    Corinna Dögl, Michael Behnam.
    Business Strategy and the Environment. March 04, 2014
    This cross‐country study investigates the antecedents and outcomes of corporate environmental responsibility (CER) practices in developed and emerging countries. Based on stakeholder and institutional theory, we conducted an empirical study among firms in Germany, USA, India and China. We found support for a significant positive relationship between regulatory, market and social stakeholder influences, CER practices and business outcomes in the total and individual country samples. Regarding country differences, our data reveal significant similarities and differences between developed and emerging countries. Market stakeholder influences are stronger in developed countries, whereas regulatory and social stakeholder influences do not differ significantly between the two country groups. The relationship between CER practices and positive business outcomes is stronger in emerging than in developed countries. Implications for institutional theory and organizations are outlined. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    March 04, 2014   doi: 10.1002/bse.1839   open full text
  • Through Thick and Thin? How Self‐determination Drives the Corporate Sustainability Initiatives of Multinational Subsidiaries.
    Kalim U. Shah, Surendra Arjoon.
    Business Strategy and the Environment. January 24, 2014
    Multinational corporation (MNC) subsidiaries implement corporate sustainability initiatives (CSIs) if they are self‐determined to do so (based on intrinsic motivation) or when urged on by circumstances and pressures (based on extrinsic motivation). Such differences in self‐determination are derived from underlying corporate psychological needs for competence, autonomy and relatedness, and are manifested in the governance choices of making, allying or buying CSIs. In this study of oil and gas MNC subsidiaries in the developing country context of Trinidad and Tobago, four distinct types of firm are identified based on their levels of self‐determination and corporate governance tendencies. These groups are identified as trail blazers, marching soldiers, sharp shooters and fire fighters, and their distinctive characteristics are described. These findings are useful to corporate sustainability strategists seeking to select, design and implement CSIs that satisfy MNC headquarter directives but balance subsidiary objectives of maintaining good relations and access to operate in developing countries. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    January 24, 2014   doi: 10.1002/bse.1838   open full text
  • Improving Firm Environmental Performance and Reputation: The Role of Employee Green Teams.
    Rosa Maria Dangelico.
    Business Strategy and the Environment. January 24, 2014
    This paper examines the link between a firm's organization environmental management capability, represented by the development of green teams made up of employees, and its performance. In particular, two categories of firm performance will be analysed: environmental performance and environmental reputation. This link has been investigated in a sample made of the largest publicly traded US companies. Data about green teams have been collected through the content analysis of firm environmental/sustainability/corporate social responsibility reports and/or their websites, whereas data about environmental performance and reputation are those reported in the US 500 Newsweek's 2010 Green Ranking. Regression analysis results show that the creation of employee green teams positively affects both environmental performance and environmental reputation. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    January 24, 2014   doi: 10.1002/bse.1842   open full text
  • Board Effectiveness and the Voluntary Disclosure of Climate Change Information.
    Walid Ben‐Amar, Philip McIlkenny.
    Business Strategy and the Environment. January 24, 2014
    This paper examines the relationship between board of directors' effectiveness and voluntary climate change disclosures. Since risk management and reporting fall under the board's responsibility, we relate board effectiveness to the firm's decision to voluntarily respond to the Carbon Disclosure Project (CDP) annual questionnaire as well as the quality of disclosures about climate‐change‐related risks and strategies to mitigate them. Our results show a positive association between board effectiveness and the firm's decision to answer the CDP questionnaire as well as its carbon disclosure quality. The paper contributes to the ongoing debate on the determinants of voluntary climate change disclosures. Our findings highlight the importance of the board of directors' role in enhancing the transparency and relevance of voluntary disclosures of climate change business impacts. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment
    January 24, 2014   doi: 10.1002/bse.1840   open full text
  • The Impact of Business Strategies on Online Sustainability Disclosures.
    Azlan Amran, Say Keat Ooi, Riduan Toani Mydin, S. Susela Devi.
    Business Strategy and the Environment. December 28, 2013
    With increasing attention being paid to corporate sustainability, pressure from stakeholders, especially customers, is forcing companies to implement sustainability strategies and practices that express their commitment to sustainable development, and engage with stakeholders through voluntary sustainability disclosure. To better understand the sustainability disclosure mechanisms from a business strategy perspective, this study investigates the influence of business strategy, formulated by customer groups, on online sustainability disclosure. It provides empirical observation of Malaysian public‐listed companies based on the combined lens of stakeholder and legitimacy theory. Despite the comparatively low level of corporate sustainability disclosure in Malaysia, this content analysis of online sustainability information disclosure reveals that the companies with more diversified product lines disclose more sustainability information, and that the corporate sustainability effort is significantly related to brand name. Hence, companies should be encouraged to proactively improve their sustainability performance and disclose more sustainability information in order to strengthen their brand names. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
    December 28, 2013   doi: 10.1002/bse.1837   open full text
  • Impact of Green Innovation on Labor Productivity and its Determinants: an Analysis of the Korean Manufacturing Industry.
    Chungwon Woo, Yanghon Chung, Dongphil Chun, Seunghun Han, Dukhee Lee.
    Business Strategy and the Environment. July 26, 2013
    Due to worsening environmental conditions around the globe, firms have been investing a great deal of money in green technologies as a way of coping with the environmental crisis. This paper uses a unique data set based on the Korea Innovation Survey to examine the impact of green innovation on labor productivity, and the determinants of environmental activities in 2010. The empirical results show that green innovation intended for both firm and customer benefits has a positive effect on labor productivity. This finding means that firms need to implement firm‐oriented green innovation as well as customer‐oriented green innovation in order to increase their performance. Our findings also show that there are significant differences in aggregate green innovations depending on different firm sizes and industries. Specifically, large firms implement environmental activities more than small ones, and pollution‐intensive industries tend to invest more in activities related to environmental technology. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.
    July 26, 2013   doi: 10.1002/bse.1807   open full text
  • The Impact of Climate Change on the Pattern of Demand for Bottled Water and Non‐Alcoholic Beverages.
    S. Mirasgedis, E. Georgopoulou, Y. Sarafidis, K. Papagiannaki, D. P. Lalas.
    Business Strategy and the Environment. July 22, 2013
    To date, the majority of the research literature on the impacts of climate change has addressed the negative aspect, i.e. the risks associated with a future permanent modification of climate. Potential opportunities have received much less attention and are rarely transformed into monetary values. Furthermore, manufacturing is one of the economic sectors where the influence of climate change remains practically unknown, although the economic performance of some industrial activities depends directly on climatic conditions – bottled water and non‐alcoholic beverages (i.e. soft drinks and fruit juices) are among these. This paper aims to explore the link between weather and product sales in these sectors, and estimate in quantitative terms the potential impact of future climate change on their revenues. Historic data were explored through statistical analysis and appropriate regression models were developed. Models were applied for the historic (1961–90) and future climate (2021–50) and the difference in sales forms the expected quantified impact of climate change. The results indicate that significant opportunities may arise for some sectors from modifications in climate, provided their production infrastructure can meet the expected demand and their management strategies can successfully adapt to altered climatic conditions. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.
    July 22, 2013   doi: 10.1002/bse.1782   open full text
  • Relationship Between Sustainable Development and Financial Performance: International Empirical Research.
    Jennifer Martínez‐Ferrero, José Valeriano Frías‐Aceituno.
    Business Strategy and the Environment. July 22, 2013
    The aim of this paper is to clarify the relationship between companies' sustainable behavior and their financial performance (FP), which has been studied for several years without reaching a consensus on the effect and the direction of it. Hypotheses are tested for an unbalanced sample of 1960 multinational non‐financial listed companies from 25 countries and one administrative region for the period between 2002 and 2010. Due to the use of an international database and the differences among countries, it is possible to observe divergence between institutional settings. For this reason, a corporate governance system (Anglo‐Saxon, Germanic, Latin and Asian) is used as characteristic of the macro‐environment. Results obtained via the generalized method of moments estimator allow us to support the existence of a positive bidirectional relationship between corporate social responsibility and FP, evidencing the existence of a synergistic circle. The use of market value indicated that investors are able to identify economic, social and environmental practices generating a positive effect on FP. These relationships differ between corporate governance systems, due to the specific characteristics of each system. Findings are robust for each sustainable sub‐index (society, human rights, environmental and board). Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
    July 22, 2013   doi: 10.1002/bse.1803   open full text
  • Recipes for Successful Sustainability: Empirical Organizational Configurations for Strong Corporate Environmental Performance.
    Kent Walker, Na Ni, Bruno Dyck.
    Business Strategy and the Environment. July 22, 2013
    We examine 45 existing case studies of firms with strong corporate environmental performance (CEP) to empirically identify four organizational configurations for successful sustainability. These four configurations represent different combinations of variables describing a firm's external environment, organizational structure, and its strategy‐related activities. More specifically, these configurations vary in having a benign or challenging external environment, a mechanistic or organic structure, a low‐cost or differentiation strategy, hands‐on or hands‐off participation by the top management team, high or low consideration given to stakeholders, and a short‐ or long‐term time orientation. Taken together the four organizational configurations introduce an understanding of equifinality for achieving CEP. In other words, given an adequate variety of ingredients, there are multiple recipes for successful sustainability. Implications for scholars, practitioners and policy‐makers and other stakeholders are discussed. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.
    July 22, 2013   doi: 10.1002/bse.1805   open full text
  • Responsible Innovation Toward Sustainable Development in Small and Medium‐Sized Enterprises: a Resource Perspective.
    Minna Halme, Maria Korpela.
    Business Strategy and the Environment. July 22, 2013
    What resources do small enterprises need to develop responsible innovations that enhance sustainable development? Does lack of resources prevent innovation toward sustainability in small and medium‐sized enterprises (SMEs) or can innovations be created with scarce resources? This study investigates environmentally and socially responsible innovations of SMEs from a resource perspective, based on empirical data from 13 Nordic SMEs. The findings indicate that SMEs can create responsible innovations with very different resource combinations. The most common resource combination comprises equity, research and development cooperation, networks, industry knowledge and reputation. Except for financial capital in the form of equity, which appears a necessary condition for responsible innovation from SMEs, resource needs vary between technological and business model innovations. Creating business model innovations appears to be possible with scarce resources, at the very least with equity and social capital. Environmental technology innovations call for more abundant resource combinations. In particular industry knowledge appears to be a key resource for such innovations. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
    July 22, 2013   doi: 10.1002/bse.1801   open full text
  • Input, Output, and Environmental Management Productivity: Effects on Firm Performance.
    Gustavo Lannelongue, Javier Gonzalez‐Benito, Oscar Gonzalez‐Benito.
    Business Strategy and the Environment. July 21, 2013
    Firms invest considerable resources to control any of their operations that may have environmental impacts in an attempt to reduce such impacts but also generate economic value. Various studies of the basic creation or destruction of monetary value through environmental performance offer contradictory evidence. Therefore, the present study proposes a new definition of environmental management as the transformation of inputs (resources assigned) into outputs (valuable results). Both inputs and outputs should be taken into account to explain financial outcomes; further consideration should also include a third aspect, namely, ‘environmental management productivity’, which describes the relationship between the outputs and inputs of environmental management. Empirical analyses of Spanish firms with a certified environmental management system subject to the European Union's CO2 emissions trading system provide evidence that all three aspects must be considered in combination to achieve a more comprehensive view of the impact of environmental management on financial performance. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
    July 21, 2013   doi: 10.1002/bse.1806   open full text
  • Influencing Clean Energy Laws: an Analysis of Business Stakeholder Engagement.
    Nigel James Martin, John Lewis Rice.
    Business Strategy and the Environment. July 19, 2013
    On 1 July 2012, Australia commenced operation of its clean energy legislation (CEL) with the introduction of a carbon price of A$23 per tonne. Prior to the commencement of CEL, the government engaged with business stakeholders in a round of structured consultations. This engagement process elicited various responses to the proposed laws from stakeholder firms and non‐governmental organizations (NGOs). Accordingly, in this paper we have used environmental management theories to examine the responses of firms and NGOs and identify critical ‘pressure points’ associated with the new laws. The results from our analysis showed that, during the consultations, stakeholders predominantly used pre‐emptive responses and communications to shape and change the CEL. In addition, the critical legislative pressure point for business stakeholders was the capacity to manage carbon pricing liabilities in order to maintain sound ongoing financial and investment performance. The study also showed that the use of highly defensive and aggressive responses were ineffectual and did not materially impact the introduction of the new laws. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
    July 19, 2013   doi: 10.1002/bse.1795   open full text
  • Sustainability‐Related Supply Chain Risks: Conceptualization and Management.
    Hannes Hofmann, Christian Busse, Christoph Bode, Michael Henke.
    Business Strategy and the Environment. July 19, 2013
    There is ample anecdotal evidence suggesting that firms can experience serious losses from social, ecological or ethical problems that exist in their supply chains. So far, however, research on supply chain risk management has largely neglected these sustainability issues. Most importantly, little is known about how sustainability issues manifest themselves as risks and how they create losses for focal firms. Without an in‐depth understanding of this materialization process, conceptualizations of sustainability risks will remain vague and effective management frameworks cannot be developed. We address this important research gap by means of a transdisciplinary approach and provide a concise description of how sustainability issues in supply chains materialize as risks for focal firms. Building on this mechanism and drawing on stakeholder theory, we develop a conceptualization of sustainability risks which lays the basis for future investigations in this respective field. In addition, we devise a viable management concept for sustainability‐related supply chain risks. The proposed concept can help firms to mitigate sustainability issues in global supply chains, thus making them less vulnerable to losses resulting from these risks. Its application will also foster sustainability standards within supply chains. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.
    July 19, 2013   doi: 10.1002/bse.1778   open full text
  • Corporate Environmental Reporting and News Coverage of Environmental Issues: an Agenda‐Setting Perspective.
    Irene Pollach.
    Business Strategy and the Environment. July 19, 2013
    Departing from agenda‐setting theory, this paper explores whether environmental content in newspapers is related to corporate environmental agendas presented in corporate environmental reports and annual reports. Based on a sample of 1668 corporate reports published between 1997 and 2008, this paper compares corporate reporting against environmental news content over the same period with time lags of one and two years as well as without time lags. The results suggest that the media agenda and the corporate environmental agenda mirror each other. The results further suggest that, for some issues, there may be an impact of the news media agenda on corporate environmental agendas, but not vice versa. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.
    July 19, 2013   doi: 10.1002/bse.1792   open full text
  • Sustainable Development Strategies for Product Innovation and Energy Efficiency.
    Wolfgang Gerstlberger, Mette Præst Knudsen, Ian Stampe.
    Business Strategy and the Environment. July 11, 2013
    The interaction between product innovation and companies’ activities aimed at improving the energy efficiency of production facilities has been relatively little studied, but is of great relevance to society and companies given the strong focus of governments on grand challenges like climate change, green innovation technologies, and environmental problems in general. This paper utilizes the 2009 European Manufacturing Survey for the Danish sub‐sample including 335 manufacturing firms. Through factor analysis, this paper confirms three main areas of focus of new product development: efficiency considerations, market attention, and greening of innovation. Logistic regression analysis demonstrates that while market attention is important for the development of new products, green aspects of innovation and efficiency considerations are important for production companies wanting to improve their energy efficiency. When these models are combined, the results highlight that energy efficiency moderates the effect of market attention to new product development. This paper therefore finds that aligning product innovation and energy efficiency is a complex and intertwined process – focusing on one may have indirect detrimental effects on the other. These results point to the conclusion that researchers and practitioners in innovation management have to consider more carefully the specificities and interactions of different types of products and process innovations and their environmental implications, and must formulate new, more sustainable managerial practices combining energy efficiency and product innovation. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
    July 11, 2013   doi: 10.1002/bse.1777   open full text
  • Strategies for Developing an Environmentally Sustainable Supply Chain: Differences Between Manufacturing and Service Sectors.
    Andrea Chiarini.
    Business Strategy and the Environment. July 04, 2013
    This research illuminates the debate on whether there are differences between the manufacturing and service sectors in the matter of developing a sustainable environmental supply chain. Over the past 5 years a survey has been conducted with 800 large European companies, of which half are in the manufacturing sector and half in the service sector. The hypotheses within the survey are related to strategies for developing an environmental supply chain. They were derived from a literature review and were tested by means of a chi‐square test. The survey questionnaire enabled the respondents to give some viewpoints about the hypotheses. In this way, strategies for developing the supply chain such as ISO 14001, the Eco‐Management and Audit Scheme (EMAS), Life Cycle Assessment (LCA), auditing, waste management systems, reverse logistics, environmental indicators, remanufacturing and reuse have been investigated. Results show interesting and unexpected differences between manufacturing and service sectors that can lead to further research, practical implications and even suggestions for the surveyed companies. For instance, the viewpoints of manufacturing and service industries differ over ISO 14001 and EMAS implementation in the supply chain. In addition, service industries approach the implementation of auditing, reverse logistics, reuse and remanufacturing in a way different from that of manufacturing. Other strategies are considered essential by both sectors. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.
    July 04, 2013   doi: 10.1002/bse.1799   open full text
  • The Road to Sustainability: Exploring the Process of Corporate Environmental Strategy Over Time.
    Giorgos Papagiannakis, Irini Voudouris, Spyros Lioukas.
    Business Strategy and the Environment. July 01, 2013
    We explore corporate environmental strategy over time, investigating the patterns of evolving environmental investment decisions. Longitudinal case studies provide evidence that environmental strategy evolves through a feedback process, wherein outcomes of earlier decisions have an impact on subsequent decisions. Specifically, positive feedback from outcomes like innovation triggers higher goals, enhancing the undertaking of advanced investments, whereas negative feedback from outcomes, such as increased costs, decelerates the adoption of further investments. The study points to an emergent view of environmental strategy, where capabilities that are gradually developed in concomitance with environmental outcomes lead to an upgrading of environmental goals, thus triggering the feedback process. The process eventually culminates in higher levels of environmental conduct, being more and more integrated with business strategy and competitive advantage. Managers' values and environmental attitudes influence environmental decisions and actions, affecting the acceleration of the feedback process and the magnitude of responses. Managerial implications are discussed. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
    July 01, 2013   doi: 10.1002/bse.1781   open full text
  • Uncovering the Value of Green Advertising for Environmental Management Practices.
    Christina W.Y. Wong, Kee‐Hung Lai, Kuo‐Chung Shang, Chin‐Shan Lu.
    Business Strategy and the Environment. July 01, 2013
    This paper extends previous environmental management research by building and empirically testing a model of the contingency effects of green advertising on the relationships between environmental management practices in terms of environmentally conscious manufacturing and product stewardship, environmental reputation and financial performance. We examine the value of green advertising in sharing and publicizing information about organizational achievements in environmental preservation in a business‐to business context with the Taiwanese electronics manufacturing industry. The theoretical propositions are largely confirmed by structural path analyses of survey responses collected from 122 Taiwanese electronics manufacturers. Green advertising delivers financial benefits only for those manufacturers that do not have an established environmental reputation. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
    July 01, 2013   doi: 10.1002/bse.1776   open full text
  • Modeling and Assessing Sustainable Enterprise Excellence.
    Rick Edgeman, Jacob Eskildsen.
    Business Strategy and the Environment. July 01, 2013
    The enterprise excellence and modern sustainability movements have developed along near parallel timelines. Skilled use of enterprise excellence systems has been documented to significantly boost performance across an array of key domains, including financial, human capital, operations and supply chain, and other areas. Notably absent are social and environmental performance, with their absence attributable to the inadequate emphasis on enterprise excellence of these domains. Similarly, although the triple bottom line is core to the sustainability movement, many adherents of sustainability approach its people and planet domains with ardor, yet virtually neglect its profit domain. A simple model of sustainable enterprise excellence and accompanying maturity assessment regimen are introduced and advanced as a means of merging these movements to drive an equity, ecology and economy triple top line strategy to produce triple bottom line people, planet and profit performance with innovation and organizational design playing pivotal roles in both the model and its assessment. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
    July 01, 2013   doi: 10.1002/bse.1779   open full text
  • Revising the Corporate Social Performance Model – Towards Knowledge Creation for Sustainable Development.
    Marjo Elisa Siltaoja.
    Business Strategy and the Environment. July 01, 2013
    The objective of this paper is to offer a revision of the corporate social performance (CSP) model. CSP exemplifies how corporate social responsibility translates into an organization's practice by focusing on three key features of performance: principles, processes and outcomes. However, the development of the model has not kept pace with the literature on social and environmental responsibility. This study builds on an argument that if corporate social responsibility in general – in which CSP plays an important role – is to respond to the challenges of sustainable development, the CSP of businesses could be more profoundly planned in order to design knowledge outcomes that contribute to meeting those challenges. The paper thus answers the recent call for the development of a CSP model by revising some of the key elements in the existing model and also by adding a knowledge creation dimension. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
    July 01, 2013   doi: 10.1002/bse.1783   open full text
  • Environmental, Social and Governance Reporting in China.
    Olaf Weber.
    Business Strategy and the Environment. July 01, 2013
    What is the current state of environmental, social and governance (ESG) reporting and what is the relation between ESG reporting and the financial performance of Chinese companies? This study analyses corporate ESG disclosure in China between 2005 and 2012 by analysing the members of the main indexes of the biggest Chinese stock exchanges. After discussing theories that explain the ESG performance of firms such as institutional theory, accountability and stakeholder theory we present uni‐ and multivariate statistical analyses of ESG reporting and its relation to environmental and financial performance. Our results suggest that ownership status and membership of certain stock exchanges influence the frequency of ESG disclosure. In turn, ESG reporting influences both environmental and financial performance. We conclude that the main driver for ESG disclosure is accountability and that Chinese corporations are catching up with respect to the frequency of ESG reporting as well as with respect to the quality. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
    July 01, 2013   doi: 10.1002/bse.1785   open full text
  • Sustainable Tuna – Can the Marketplace Improve Fishery Management?
    Duncan Leadbitter, Rene Benguerel.
    Business Strategy and the Environment. July 01, 2013
    Tuna is a major global seafood commodity and thus of significance to retailers in most countries, but especially in countries consuming large quantities of canned tuna such as the United Kingdom, United States and many European countries. Some key species are under heavy fishing pressure, and companies realize that without conservation oriented management their future supplies may be in jeopardy. Sustainable sourcing policies are becoming an integral part of supply chains for seafood products. Under the influence of public opinion bodies such as the media and environmental NGOs, many retailers have adopted seafood sourcing policies in the past decade. The business strategy of any particular company in seeking to support sustainable fishing can vary, but may include the pursuit of market opportunities, protection from damaging publicity and corporate social responsibility commitments. Companies that seek to involve themselves in fishery sustainability issues need to be committed to broad based partnerships with other companies and NGOs, and transparency about all aspects of their decision making, intentions and progress. The sustainable seafood movement has proven persistent and adaptable, and this is increasing the number of retailers seeking sustainable tuna. In a demand driven market economy this growth will surely be influential. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
    July 01, 2013   doi: 10.1002/bse.1794   open full text
  • Stakeholder Engagement and Sustainable Corporate Community Investment.
    Anna Lee Rowe, Margaret Nowak, Mohammed Quaddus, Marita Naude.
    Business Strategy and the Environment. July 01, 2013
    This paper presents the findings of research exploring the value and impacts of corporate community investment (CCI) through community partnerships. The research considered the community partners' perceptions of the value and impact of CCI. We adopted an inquiry paradigm utilising constructivist ontology, interpretivist epistemology and a case study method. In dialogue with Wesfarmers Ltd's community partners, the ‘realities’ presented by these beneficiary stakeholders were interpreted and understood (verstehen). While the CCI programmes with each of the not‐for‐profit organisations had different objectives, we were able to classify, under broad headings, the nature of the benefits to the community. One question highlighted is whether all corporate investing is the same? We found two aspects to this: the strategic fit for the community organisation of proposed investment and whether the corporate partner sought a relational as opposed to transactional approach to funding provision. Recommendations can be made for the funding structure deemed to be most effective from the community partners' perspectives. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
    July 01, 2013   doi: 10.1002/bse.1796   open full text
  • Corporate Sustainability and Economic Performance: an Empirical Analysis of a Voluntary Environmental Program in the USA.
    Seong‐gin Moon, Suho Bae, Moon‐Gi Jeong.
    Business Strategy and the Environment. July 01, 2013
    Voluntary environmental programs (VEPs) are designed based on a win–win approach to environmental protection that reconciles environmental protection and economic performance. Despite the claims about VEPs, there has been an ongoing debate over their efficacy with regard to whether environmental goals are balanced by economic interests on both theoretical and empirical grounds. To resolve this controversy, this paper empirically investigates a public VEP by the US Environmental Protection Agency: Green Lights (GL). For this, the paper constructs a treatment effects regression model to account for the effects of non‐random assignment for GL participants and non‐participants. The proposed model can simultaneously estimate probit models that predict corporate participation in the GL program and linear models that test the extent to which this participation contributes to economic performance. The results indicate significant positive effects of corporate participation in the GL program on economic performance, providing support for the win–win perspective. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
    July 01, 2013   doi: 10.1002/bse.1800   open full text
  • A Business Sustainability Model for Government Corporations. A Belgian Case Study.
    Tim Benijts.
    Business Strategy and the Environment. July 01, 2013
    A government's decision to tackle societal non‐sustainability problems by setting up a government corporation also necessitates the choice of a business model. This article seeks to contribute to this debate through an analysis of the (linkages between the key elements of the) business model of the Kringloopfonds (TKF), a Belgian government corporation set up in order to provide finance to sustainable companies. Based on documentary information and semi‐structured interviews with stakeholders TKF's business model is reconstructed which next is evaluated by means of program theory. It was found that TKF's portfolio allocation rule did not foresee in sufficient flexibility in order to cope with the shortage in financeable companies TKF was confronted with. This case thereby advocates for more business model flexibility in terms of portfolio allocation rules, time and asset requirements as well as for thorough sensitivity analyses testing business model's resistance to an initial and temporary shortage of sustainable companies. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.
    July 01, 2013   doi: 10.1002/bse.1784   open full text
  • An Examination of Corporate Social Responsibility Implementation and Stakeholder Engagement: A Case Study in the Australian Mining Industry.
    Angela R. Dobele, Kate Westberg, Marion Steel, Kris Flowers.
    Business Strategy and the Environment. July 01, 2013
    This case study explores the experience of a company in a controversial industry sector and its efforts to act in a socially responsible manner when establishing a presence in a regional market. We examine the management of stakeholder relationships and communication, and identify the challenges associated with implementing corporate social responsibility (CSR) initiatives. Our findings highlight the importance of ongoing and broad stakeholder identification, prioritization and management. This case study demonstrates the key role of commitment from senior management and front‐line employees and the importance of a CSR champion. Commitment must be demonstrated at a local level to facilitate community engagement, feedback and monitoring. Finally, the findings highlight the externality of stakeholder networks and their non‐centric relationship with the company. Thus, a company is not the centre of the stakeholder network; the network has a life of its own, regardless of a company's involvement or non‐involvement. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.
    July 01, 2013   doi: 10.1002/bse.1775   open full text
  • Green Materialities: Marketing and the Socio‐material Construction of Green Products.
    Christian Fuentes.
    Business Strategy and the Environment. July 01, 2013
    Green products are becoming part of contemporary consumer cultures and part of everyday life. But how are green products constructed? What kind of green products are constructed? And what happens as these green products are constructed? The aim of this paper is to contribute a socio‐cultural and critical understanding of green marketing by exploring and illustrating how marketing practices work to construct green products as meaningful material‐symbolic artefacts in practice. Departing from an understanding of marketing as practice I analyse how a green outdoor product ‐ a t‐shirt ‐ was constructed as green through the marketing practices of the Nordic Nature Shops. Focusing on this retail corporation and examining the practices of trail making, attending and selling, it is suggested that these t‐shirts become green through a process of socio‐material inscription. Through marketing practices green moral is generated and linked to the t‐shirts potentially making them desirable consumption objects to be used in the construction of consumers green identities. However, this process of green making is a difficult accomplishment with ambiguous outcomes. While the tendency to inscribe commercial products with morality can be interpreted as an indication of the development of a more ethically reflective consumer culture, it can also be argued to lead to the commercialization of morality. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.
    July 01, 2013   doi: 10.1002/bse.1768   open full text
  • Keeping sustainable innovation on a leash? Exploring incumbents’ institutional strategies.
    Magda M. Smink, Marko P. Hekkert, Simona O. Negro.
    Business Strategy and the Environment. July 01, 2013
    This research aims to identify the institutional strategies of incumbent firms with regard to sustainable energy innovations that threaten their interests. This exploratory study contributes to the multi‐level perspective by providing new insights into niche–regime interaction. The focus on actor behavior in transitions is informed by literature from institutional theory and strategic management. Based on semi‐structured interviews with actors and on documents related to LED lighting and biofuels in the Netherlands, this study identified a preliminary set of empirical strategies: providing information and arguments to policy makers and the general public, as well as strategically setting technical standards. Incumbents are in a position to significantly influence the innovation's development by employing these strategies; thus temporarily keeping sustainable innovation on a leash. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
    July 01, 2013   doi: 10.1002/bse.1808   open full text
  • Benefits of Cross‐sector Partnerships in Markets at the Base of the Pyramid.
    Tassilo Schuster, Dirk Holtbrügge.
    Business Strategy and the Environment. July 01, 2013
    In this paper we analyze whether cross‐sector partnerships enable companies to respond to the specific conditions at the base of the pyramid (BOP). We develop three hypotheses in which we argue how cross‐sector partnerships support companies to face unfamiliar conditions in these markets. We test the developed hypotheses against the data of 103 companies operating in BOP‐markets. The results show that companies rely on organizations from the civil society sector in order to meet customer needs. Partners from the business sector are supportive when responding to restrictive market conditions. Institutional partnerships should be considered when companies aim at responding to the regulatory environment. We outline theoretical and managerial implications and reflect some limitations of the study. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.
    July 01, 2013   doi: 10.1002/bse.1780   open full text
  • Environmental, Sustainable Behaviors and Innovation of Firms During the Financial Crisis.
    Yunhee Kim.
    Business Strategy and the Environment. July 01, 2013
    In this paper, we analyze the relation between sustainable and environmental behaviors and performance and innovation. Altogether, 1032 observations are divided into specific groups according to the Carbon Disclosure Project (CDP) Global 500 report and the Dow Jones Sustainability Index (DJSI) for 2008 and 2009. Based on legitimation theory and stakeholder theory, we regard the voluntary activities of firms as having long‐run effective characteristics that can be applied to industry in general. The environmental behavior of firms is represented by CDP activity, while the DJSI represents their sustainable activities. Based on the assumption that corporate environmentalism is a bilateral agreement between policymakers and firms, we answer four specific research questions. (i) What is the relation between voluntary activities and performance of firms? (ii) Do firms' voluntary activities in environmental and sustainable implementations induce innovation? (iii) How does the nature of innovation depend on voluntary type of the firms? (iv) What is the link between firm characteristics and innovation according to voluntary types? From the presented empirical analysis, we find positive relations between corporate environmentalism and innovative activities. We then classify environmental and sustainable issues and propose an empirical model of the links between environmental and sustainable behaviors and innovation activities. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.
    July 01, 2013   doi: 10.1002/bse.1811   open full text
  • The Effect of Family Ownership on Different Dimensions of Corporate Social Responsibility: Evidence from Large US Firms.
    Joern H. Block, Marcus Wagner.
    Business Strategy and the Environment. July 01, 2013
    Previous research has shown that family firms differ from non‐family firms with regard to aggregate measures of corporate social responsibility (CSR). We argue that CSR is a multidimensional concept that comprises several aspects, which range from employee relations to ecological concerns and product issues. Based on an organizational and family identity perspective, we argue that the effect of family ownership can differ across various CSR dimensions. Family firms can be responsible and irresponsible regarding CSR at the same time. We use a dataset of large US firms to test our hypotheses. Our Bayesian regressions show that family ownership is negatively associated with community‐related CSR performance and positively associated with diversity‐, employee‐, environment‐ and product‐related aspects of CSR. The largest positive effect of family ownership on CSR performance exists with regard to product‐related aspects of CSR. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
    July 01, 2013   doi: 10.1002/bse.1798   open full text
  • The Influence of Governance Structure and Strategic Corporate Social Responsibility Toward Sustainability Reporting Quality.
    Azlan Amran, Shiau Ping Lee, S. Susela Devi.
    Business Strategy and the Environment. June 28, 2013
    Increased business complexities coupled with enhanced global transformation have propelled corporations to behave as responsible citizens to drive the sustainability agenda. Many corporations incorporate their affirmative commitment to sustainable business practices into their corporate identities and give evidence for this in their sustainability reports. This paper examines the role of the board of directors in sustainability reporting quality (SRQ) in the Asia‐Pacific region. Based on a cross‐sectional study of 113 companies from 12 countries in the region, we find that the SRQ in the region leaves much room for improvement. However, we find that the institutionalization of the concept of corporate social responsibility (CSR) in an organization provides a sound foundation for enhancing SRQ. We find that the value of CSR anchored in the vision and/ or mission statement and strategic alliances fostered with non‐governmental organizations are positively associated with SRQ.This study contributes to strengthening the understanding, promoting discussion on the state of sustainability reporting in the Asia‐Pacific context and laying a solid foundation for more aggressive efforts to enhance SRQ. The study identifies the significant drivers currently associated with SRQ. The weak role of the board of directors in upholding the sustainable development agenda through the reporting process is highlighted. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.
    June 28, 2013   doi: 10.1002/bse.1767   open full text
  • Sustainability in the Transport and Logistics Sector: Lacking Environmental Measures.
    Peter Oberhofer, Maria Dieplinger.
    Business Strategy and the Environment. April 01, 2013
    Sustainability as part of the development of companies' business strategies is gaining in importance. Due to its impact on the environment, this is particularly essential for companies of the transport and logistics sector. This paper explores several factors that influence the environmental behaviour of transport and logistics companies in Austria. It discusses the importance of the economic impact on environmental management decision in detail and analyses the sector's specific characteristics in terms of environmental behavior. A case‐based approach involving multiple field studies with face‐to‐face expert interviews and secondary data analysis was used to evaluate environmental performance and specific practices. Using selected cases, we will demonstrate how environmental measures contribute to overall business performance and draw general conclusions regarding the transport and logistics sector. Furthermore, suggestions are given as to how the government can further support transport and logistics companies in this regard. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.
    April 01, 2013   doi: 10.1002/bse.1769   open full text
  • Conformance and Deviance: Company Responses to Institutional Pressures for Corporate Social Responsibility Reporting.
    Esben Rahbek Gjerdrum Pedersen, Peter Neergaard, Janni Thusgaard Pedersen, Wencke Gwozdz.
    Business Strategy and the Environment. February 22, 2013
    This paper analyses how large Danish companies are responding to new governmental regulation which requires them to report on corporate social responsibility (CSR). The paper is based on an analysis of 142 company annual reports required by the new Danish regulation regarding CSR reporting, plus 10 interviews with first‐time reporting companies and six interviews with companies that failed to comply with the new law. It is concluded that coercive pressures from government have an impact on CSR reporting practices. Further, the analysis finds traces of mimetic isomorphism which inspires a homogenisation in CSR reporting practices. Finally, it is argued that non‐conformance with the new regulatory requirements is not solely about conscious resistance but may also be caused by, for example, lack of awareness, resource limitations, misinterpretations, and practical difficulties. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.
    February 22, 2013   doi: 10.1002/bse.1743   open full text
  • Environmental Innovations and Strategies for the Development of New Production Technologies: Empirical Evidence from Europe.
    Werner Bönte, Christian Dienes.
    Business Strategy and the Environment. February 22, 2013
    This study empirically investigates whether firms' improvements in energy and material efficiency are related to the extent to which external partners are involved in the development of process innovations. In particular, we distinguish three different process innovation strategies: firms may follow an ‘in‐house strategy’ and develop their innovations mainly within the firm, they may opt for an ‘external strategy’ and let mainly external partners develop innovations, or they may opt for a ‘cooperation strategy’ and develop innovations jointly with external partners. Using data of manufacturing firms obtained from the fourth Community Innovation Survey covering 14 European countries, we conduct total sample as well as industry‐ and country‐specific regressions. Our results indicate that firms following the ‘external strategy’ tend to have a lower probability of introducing process innovations leading to a marked increase in energy and material efficiency. Moreover, in contrast to extant literature, none of our results suggests that companies following a ‘cooperation strategy’ experience greater environmental innovation performance.
    February 22, 2013   doi: 10.1002/bse.1753   open full text
  • Environmental Innovations as a Source of Competitive Advantage or Vice Versa?
    Helena Forsman.
    Business Strategy and the Environment. February 22, 2013
    The aim of this paper is to examine the links between developed environmental innovations and the competitiveness of firms. It seeks answers to the question: Are the developed environmental innovations associated with the improved or impaired competitiveness of firms? In addition, it explores how competitive advantage is created along the innovation process. This will be done by comparing the successful and unsuccessful green innovators. The empirical evidence is based on the longitudinal dataset gathered from 128 Finnish firms which have developed one or more environmental innovations. The data covers nine years from 2002 to 2010. This study provides two contributions to academic literature. First, it deepens the existing knowledge of how environmental innovations are associated with competitive advantage. It identifies the types of competitive advantages as well as potential disadvantages along the innovation process. Second, this study demonstrates how the competitive advantage was enhanced along the successful innovation process. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
    February 22, 2013   doi: 10.1002/bse.1742   open full text
  • Explanatory Factors of Integrated Sustainability and Financial Reporting.
    José V. Frias‐Aceituno, Lázaro Rodríguez‐Ariza, Isabel M. Garcia‐Sánchez.
    Business Strategy and the Environment. December 10, 2012
    The complexity of the business world has led to growing demands being made of companies regarding the information provided on their financial performance, corporate governance and contribution to developing sustainability. In response, some leading companies have begun to publish integrated reporting, in the form of a document providing a coherent summary of this information, thus facilitating stakeholder engagement. This paper examines the validity of the hypotheses of the theories of agency and of signalling, and analyses the political costs and those borne by owners in voluntarily developing this new type of business document. More specifically, in order to determine their prevalence among the suggested reasons for these paradigms, we analyse the effect of industry concentration, together with other factors, in the development of integrated reporting. The analysis of a non‐balanced sample of 1590 international companies for the years 2008–2010, in which a logistic regression methodology is applied to panel data, reveals the negative impact of industry concentration on the development of a more pluralist report, simultaneously taking into account stakeholders, sustainability and the long‐term viewpoint, as well as questions of responsible investment, business ethics and transparency. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment
    December 10, 2012   doi: 10.1002/bse.1765   open full text
  • Environmental Management Evolution: Empirical Evidence from Spain and Italy.
    M. Ormazabal, J.M. Sarriegi.
    Business Strategy and the Environment. December 10, 2012
    This research is focused on a survey conducted among Spanish and Italian companies in order to define the environmental management evolution within firms. Through this survey, a number of maturity stages were defined and validated, and the identification of the relevant factors for each of the maturity stages was made. Survey results show that companies start with environmental management issues due to legislation requirements. Afterwards, firms go through a training phase, continuing with the systematization stage, then look for economic benefits through ecological improvements (ECO2 stage) and finish with the eco‐innovation and leading green company stages. The survey has shown that the maturity stages have application in all types of industrial sector. These are useful for those firms that want to make progress in environmental matters, as it helps them to identify at which maturity stage they are and what are the factors that they need to take into account to move forward. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.
    December 10, 2012   doi: 10.1002/bse.1761   open full text
  • Commitment Strategies for Sustainability: How Business Firms Can Transform Trade‐Offs Into Win–Win Outcomes.
    Markus Beckmann, Stefan Hielscher, Ingo Pies.
    Business Strategy and the Environment. December 10, 2012
    This paper addresses a fundamental problem in corporate sustainability: How can corporations transform trade‐offs through win–win‐oriented governance strategies aimed at creating value? Drawing on new strands of research in business ethics, we employ an ‘ordonomic’ perspective and proceed in four steps. First, we sketch how sustainability semantics has evolved historically from a societal searchlight to a heuristics for business practice. Second, we discuss how business firms can make strategic use of moral commitments as governance contributions by deploying individual or collective self‐commitments as well as commitment services in their stakeholder relations. Third, we combine these four governance strategies with the three ESG (‘ecological, social and governance’) criteria of sustainability. We derive and illustrate with real‐life examples a 12‐box matrix as a tool for the strategic management of corporate sustainability. Fourth, we discuss the specific contribution of our ordonomic approach to the literature. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment
    December 10, 2012   doi: 10.1002/bse.1758   open full text
  • Price Fairness in the Case of Green Products: Enterprises' Policies and Consumers' Perceptions.
    Sihem Dekhili, Mohamed Akli Achabou.
    Business Strategy and the Environment. December 10, 2012
    This study investigates the extent to which prices of ecological products are fair. In particular, it explores the gap that can exist between the pricing policies adopted by enterprises and the consumers' price expectations in terms of fairness. The existing academic literature on sustainable consumption neglects this question. Findings from a qualitative investigation combining a consumer study and enterprise case studies show that managers' behaviors vary. While some enterprises take into account consumers' expectations and purchasing power to propose a fair price based on the value of the green product, others continue to adopt a pricing policy that is exclusively based on profitability and competition. The authors draw some business and academic implications. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.
    December 10, 2012   doi: 10.1002/bse.1763   open full text
  • Climate Change Response: Evidence from the Margaret River Wine Region of Australia.
    Jeremy Galbreath.
    Business Strategy and the Environment. December 07, 2012
    This study explores the relevancy of climate change to business using a sample of wine firms operating in Margaret River, Western Australia, one of the premier wine regions of the world. Using a qualitative approach based on thematic analysis, the results challenge the extent to which climate change is a salient stakeholder, while demonstrating that the phenomenon may, in fact, be beneficial. Response actions towards climate change demonstrate both mitigative and adaptive actions, although differences in their level and rate of implementation appear to be attributable to a mix of normative and instrumental trade‐offs. Implications of the findings are discussed, with a particular focus on location theory and economic barriers as a key driver of trade‐offs between the choice of mitigative or adaptive response to climate change. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.
    December 07, 2012   doi: 10.1002/bse.1762   open full text
  • Sustainability Development and the Quality of Assurance Reports: Empirical Evidence.
    Ana Zorio, Maria A. García‐Benau, Laura Sierra.
    Business Strategy and the Environment. December 07, 2012
    There is a rising trend among companies to publish their sustainability or corporate social responsibility (CSR) reports. Assurance of these reports is a valuable voluntary tool to provide them with higher credibility. Nonetheless, the quality of assurance reports differs in practice and the objective of this paper is to provide evidence in this new area of research. Indeed, we are pioneers in developing an index to measure the quality of assurance reports. We choose the Spanish setting because it is the worldwide leading country as regards CSR reporting (KPMG, ; Sierra et al., ). We have found evidence on the determinants for CSR reporting posited by existing literature that have an impact on (a) the decision of companies to publish their CSR reports, (b) the decision to assure the CSR report or not and (c) the decision to hire the assurance services from an auditor or a consultant and the subsequent quality of the assurance report. Last but not least, our results from a sample of 161 CSR assurance reports evidence that assurance reports are of fairly acceptable quality, according to the index proposed. Furthermore, the value of the quality index is significantly higher if the assurance services are provided by an auditor (as opposed to a consultant) and if the CSR reporting company is larger. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.
    December 07, 2012   doi: 10.1002/bse.1764   open full text
  • Environmental Management of End‐of‐Life Products: Nine Factors of Sustainability in Collaborative Networks.
    Francesco Rizzi, Irene Bartolozzi, Alessandra Borghini, Marco Frey.
    Business Strategy and the Environment. November 21, 2012
    The paradigm of the green economy has contributed to raising the attention paid to developing sustainability‐oriented strategies for supply chain (SC) management. The responsibility of producers to extend and reverse SCs is a critical and timely topic that captures increasing concerns over the way firms can adapt their business models to interlinking technical, socio‐economic and environmental frameworks. This is particularly true when producers are not also reuse/recycle actors. By performing a critical review of the scientific literature on this field, this article develops nine elemental factors that can be considered for assessing the impacts of collaborative strategies as a means to implement extended producer responsibility (EPR) in open‐loop SCs. The resulting conceptual framework provides EPR implementation guidance under different market conditions. Inter‐organizational relationships are found to present both opportunities and threats that can be profitably managed under a systemic perspective. Implications for management and needs for further research are discussed. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.
    November 21, 2012   doi: 10.1002/bse.1766   open full text
  • Why Do Companies Not Produce Sustainability Reports?
    Wendy Stubbs, Colin Higgins, Markus Milne.
    Business Strategy and the Environment. November 12, 2012
    Sustainability reporting emerged on the corporate scene nearly 30 years ago as a key mechanism through which business organisations would manage a transition to a new business landscape dominated by greater concern and consciousness about sustainability. While it has become something of a feature on the corporate agenda in some parts of the world, the majority of business organisations do not undertake this type of reporting. This paper explores why 23 of Australia's top 200 companies do not undertake sustainability reporting. The study is situated in the context of a considerable literature that promised numerous benefits to be derived from this type of reporting. The paper uncovers various social and organisational factors that raise some new questions about legitimacy theory, corporate accountability and the spread and uptake of this organisational practice. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.
    November 12, 2012   doi: 10.1002/bse.1756   open full text
  • Strategizing Environmental Policy and Compliance for Firm Economic Sustainability: Evidence from Taiwanese Electronics Firms.
    Chin‐jung Luan, Chengli Tien, Pei‐hua Wu.
    Business Strategy and the Environment. November 12, 2012
    This study aims to examine whether the compliance of environmental policies can sustain firm economic performance, and whether a timing issue is relevant to firm economic sustainability in pursuit of eco‐friendly efforts. Offering models predominantly based on the institutional theory, this study tests hypotheses using data from 284 companies in the electronics sector in Taiwan during the period from 1997 to 2010. The findings reveal that the execution of environment policies mostly improves firm economic sustainability and some joint green efforts can even strengthen such sustainability; however, firms aiming to sustain their economic performance should not hasten to undertake eco‐friendly efforts, implying that first movers may not be guaranteed firm economic performance. Thus, managers should carefully strategize their green efforts to comply with environmental policies, and execute them in due course to prevent disadvantages, such as market uncertainty and complexity of green practices, while conquering organizational inertia. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment
    November 12, 2012   doi: 10.1002/bse.1760   open full text
  • Pollution prevention and service stewardship strategies in the third‐party logistics industry: effects on firm differentiation and the moderating role of environmental communication.
    Steffen Maas, Tassilo Schuster, Evi Hartmann.
    Business Strategy and the Environment. November 12, 2012
    A growing number of firms are considering the incorporation of environmental thinking into their business strategies, hoping to improve their competitiveness. In this paper, we analyze the effects of pollution prevention and service stewardship capabilities on firm differentiation advantage in the third‐party logistics industry. Since prior research claims that complementary assets play an important role in fully understanding the environmental‐management‐competitiveness link, we furthermore examine the moderating role of environmental communication on the pollution‐prevention‐differentiation and the service‐stewardship‐differentiation linkages. We theoretically base our research in natural‐resource‐based thinking. Drawing on survey data, we apply multivariate regression and moderation analysis. The results highlight that pollution prevention and service stewardship capabilities can help third‐party logistics providers to achieve a differentiation advantage. Also, the results show that environmental communication moderates the effect of pollution prevention on differentiation advantage and can hence be considered a valuable complementary asset.
    November 12, 2012   doi: 10.1002/bse.1759   open full text
  • Sustainable Development and the Financial System: Society's Perceptions About Socially Responsible Investing.
    Elena Escrig‐Olmedo, María Jesús Muñoz‐Torres, María Ángeles Fernández‐Izquierdo.
    Business Strategy and the Environment. November 08, 2012
    The debate surrounding the financial needs of investors and the impact on society of investment is considered to be an important research topic due to the growth of socially responsible financial markets. The main objective of this research is to study society's perception about socially responsible investing (SRI) and to identify investor's preferences regarding environmental, social and governance criteria, their real‐life investment needs and the most relevant sustainable financial products. To examine society's perception of SRI, we conducted a field survey among Spanish investors. The results show that SRI is at an early stage and Spanish investors need more exact information regarding social, environmental, and governance criteria in order to invest in socially responsible companies and products. This paper offers some guidelines that could be used by Spanish institutions, managers and investors and by foreign managers when approaching the Spanish market, in order to promote the growth of socially responsible financial products. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.
    November 08, 2012   doi: 10.1002/bse.1755   open full text
  • Sustainable Development in the Transport Sector: Influencing Environmental Behaviour and Performance.
    Peter Oberhofer, Elmar Fürst.
    Business Strategy and the Environment. October 23, 2012
    Sustainable Development and Environmental Policy are becoming increasingly important in the development of business strategies. Consequently, corporate road freight transport comes under particular scrutiny due to its substantial impact on the environment. This paper explores the implementation of environmental management in the Austrian road freight transport sector. A model based on an extensive literature review is developed and adapted to show the impact of attitude, company size and sector affiliation. It is tested using data from a quantitative survey. Based on an extensive literature review a model of influencing factors is developed and tested using data from a quantitative survey. According to our findings, we adopted the model with respect to the impact of attitude, company size and sector affiliation. Although decision‐makers' attitudes have a significant influence on the companies' actual environmental performance, firm size and sector affiliation are shown to have a far greater influence. It is therefore necessary to offer external incentives and support in order to improve environmental behaviour, especially among smaller and transport companies. Such instruments, however, need to be aligned on an international basis and across industries to prevent friction and competitive disadvantage. In addition to policy intervention (legal restrictions and incentives) and improvements on a corporate level, consumer awareness should be raised in order to create public pressure for companies to implement environmental management. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.
    October 23, 2012   doi: 10.1002/bse.1750   open full text
  • Corporate Social Responsibility in China: a Preferential Stakeholder Model and Effects.
    Jiyao Xun.
    Business Strategy and the Environment. October 22, 2012
    Research interest in examining corporate social responsibility (CSR) in developing economies is on the rise; however, our knowledge of the role of government in CSR remains limited. The aim of this paper is therefore to bridge this gap with an investigation into the specific CSR strategies that global firms have developed in the world's largest emerging economy and a nominally communist country, namely China. Drawing on institutional theory and a relational governance perspective, we posit that rather than adopting a canonical holistic CSR stakeholder model as typically observed in Western countries, these firms adopt a preferential stakeholder model using government‐aimed and consumer‐aimed CSR strategically. Our empirical study sampled 17 global retailers operating in China, with a dataset compiled to include their CSR web announcement data and firm performance data. The results of partial least squares modelling suggest that only government‐aimed CSR plays a salient role in enhancing retailers' performance. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment
    October 22, 2012   doi: 10.1002/bse.1757   open full text
  • Motivations and Barriers to Corporate Environmental Management.
    David Ervin, JunJie Wu, Madhu Khanna, Cody Jones, Teresa Wirkkala.
    Business Strategy and the Environment. September 24, 2012
    This paper integrates two conceptual frameworks, utility maximization and institutional theory, to analyze voluntary corporate environmental management. The utility maximization or economic approach centers on motivations to decrease cost, increase revenue and improve manager utility. Institutional theory emphasizes how external pressures from market and non‐market constituents shape the firm's environmental efforts. We view the two frameworks as complementary and postulate a model that includes both types of influences. Survey data from six major industries consisting of a diverse set of facilities are used to estimate the effects of economic and institutional factors on a facility's use of environmental practices and pollution‐prevention activities. Our results support the hypothesized model, and show that cost barriers, management attitudes toward environmental stewardship, company ownership and external institutional forces, including competitiveness, investor and regulatory pressures, all affect a facility's environmental practices and pollution prevention activities. Findings suggest that a multifaceted policy strategy is needed to advance corporate environmental management across diverse firms. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment
    September 24, 2012   doi: 10.1002/bse.1752   open full text
  • Environmental Requirements, Knowledge Sharing and Green Innovation: Empirical Evidence from the Electronics Industry in China.
    Stanley Kam Sing Wong.
    Business Strategy and the Environment. September 18, 2012
    Building on the Porter hypothesis, which posits that regulatory stringency triggers innovation and thereby allows firms to achieve the dual purpose of environment protection and enhanced business performance, the present research develops an integrative model that explores the determinants of green innovation with a focus being placed on knowledge sharing. Data were collected from 203 green innovation project leaders from electronics manufacturers operating in China. The results indicate that knowledge sharing mediates the relationship between green requirements and new green product success as well as that between green requirements and green product and process innovations. Interestingly, the empirical analysis rejects the hypothesized positive influence of green requirements on green product and process innovations as well as that on new green product success, while confirming that there exists a direct and positive association between green requirements and knowledge sharing. The direct positive impact of knowledge sharing is the strongest on green process innovation. This study provides a theoretical basis for investigating the possible determinants in the causal links between green requirements and green innovation success and establishes that knowledge sharing and green process innovation may be the points where leverage can be applied to best secure innovation success. Implications of the findings on environmental policy and law design are also discussed to see how the regulatory role of the government can be better positioned to facilitate compliance and innovation. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.
    September 18, 2012   doi: 10.1002/bse.1746   open full text
  • Assessing the Comprehensiveness of Supply Chain Environmental Strategies.
    Joana M. Comas Martí, Ralf W. Seifert.
    Business Strategy and the Environment. September 13, 2012
    As environmental awareness grows, firms are expected to expand the scope of their environmental strategies beyond organisational boundaries and to address more comprehensively environmental issues in their supply chains and product life cycles. Drawing on different literature streams, international standards and corporate disclosure, this paper presents a conceptual framework for the quantitative assessment of the comprehensiveness of firms' environmental strategies. This framework allows us to capture: (i) the environmental inputs and outputs addressed, (ii) the firm versus supply chain orientation of environmental strategies, and (iii) the environmental management practices adopted by companies. We illustrate the application of this framework with a content analysis of corporate sustainability reports for a cross‐sectoral sample of sustainability leaders. Our results indicate that there is a need for greater specificity in environmental reporting and that, overall, companies remain firm‐oriented. It is also observed that supply chain orientation can generally be associated with stakeholder pressure. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.
    September 13, 2012   doi: 10.1002/bse.1749   open full text
  • Convergence in Environmental Reporting: Assessing the Carbon Disclosure Project.
    Daniel C. Matisoff, Douglas S. Noonan, John J. O'Brien.
    Business Strategy and the Environment. September 13, 2012
    We perform content analysis on Carbon Disclosure Project (CDP) responses from 2003 to 2010, focusing on the extent to which firms account for indirect emissions and have exhibited convergence in carbon reporting. We also examine standardization in reporting and the variation of reporting behavior across industry and country. We find that the CDP has produced a mixed record of improved transparency. In some areas, such as Scope 2 emissions, the CDP has demonstrated an increase in transparency in later years. However, the transparency and quality of direct emissions and Scope 3 emissions have not improved over time. Japanese and European Union firms have increased transparency, while American firms have decreased transparency. Energy‐intensive industries have either increased transparency or remained the same, while less energy‐intensive industries have become less transparent. We demonstrate some evidence of a learning effect among firms after participating in the CDP survey. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.
    September 13, 2012   doi: 10.1002/bse.1741   open full text
  • ISO 26000 and the Standardization of Strategic Management Processes for Sustainability and Corporate Social Responsibility.
    Rüdiger Hahn.
    Business Strategy and the Environment. September 13, 2012
    The standard ISO 26000 aims to provide guidance on social responsibility and help all types of organizations contribute to sustainable development. Such guidance is important since there is still no consistent understanding of what corporate sustainability and social responsibility (CSSR) encompass. Many companies lack a strategic approach to CSSR and instead follow unsystematic procedures; thus, formal strategic planning could improve operational efficiency. Against this background, this article critically examines the contribution of ISO 26000 to the strategic management processes of different types of companies. This allows the potential of ISO 26000 for guiding companies on their path to sustainability to be identified. The analysis shows that the standard is most useful for beginners in CSSR. However, ISO 26000 does not cover the entire range of strategic management processes. Instead, the standard is especially helpful for internal and external analyses and in providing starting points for implementing sustainability strategies. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.
    September 13, 2012   doi: 10.1002/bse.1751   open full text
  • Environmental Performance, Environmental Risk and Risk Management.
    Michael Dobler, Kaouthar Lajili, Daniel Zéghal.
    Business Strategy and the Environment. September 13, 2012
    Environmental performance, environmental risk and risk management are of contemporary interest, but to date there is limited evidence on their relationships. This paper is the first to provide detailed insights by adopting a content analysis approach and disaggregating firm‐level environmental risk into types related to regulations, operations and nature. For a sample of US firms in polluting sectors, descriptive findings show that the level of risk and the likelihood of active risk management differ in the type considered. Environmental performance, risk and the likelihood of risk management all differ across firms and industries. Multiple regressions reveal a negative association between environmental performance and environmental risk, the extent of which depends on the type of risk. Results hold when controlling for active risk management, which is not found to contribute significantly to environmental performance. Our findings have implications for public policy and suggest that linkages to environmental risk and risk management are worth exploring in more differential ways and beyond industry‐level assessments in environmental studies. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.
    September 13, 2012   doi: 10.1002/bse.1754   open full text
  • Sustainability and Earth Resources: Life Cycle Assessment Modeling.
    T. O'Shea, J. S. Golden, L. Olander.
    Business Strategy and the Environment. July 10, 2012
    Corporations are facing increasing risks associated with ecosystems from both natural drivers, such as climate change, as well as institutional drivers resulting from retailers and brands, increasingly making supplier decisions based on life cycle reporting and indexing. These efforts reflect a transition from traditional firm sustainability to a more quantitative product focus, within which the importance and weight of earth resources and ecosystems is dramatically increasing. This paper provides an overview of the limitations traditional life cycle assessment (LCA) methods and presents emerging developments to improve on LCA for resources and ecosystems. This includes LCA efforts to account for spatial relevance, indices of stress, stocks and flows and integrated valuation of services and trade‐offs. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.
    July 10, 2012   doi: 10.1002/bse.1745   open full text