How Proactive Environmental Strategy Develops Organizational Capabilities: Evidence from China

The purpose of the current study is to investigate how organizational resources and capabilities affect corporate environmental strategy (CES) and performance based on an extended natural resource-based view (NRBV). In contrast with existing studies showing only partial relationships, such as the relationship between CES and firm performance, the current study investigates comprehensive relationships among core NRBV variables and develops an integrated model by combining a resource-based view (RBV), NRBV and competitive advantage theory. The NRBV, as an extension of Barney’s (1991) RBV, is the first model to advocate the importance of corporate capabilities with natural environmental consideration (Hart, 1995). However, this NRBV does not explicitly address the role of corporate proactive environmental strategy (PES) as a determinant of performance. To differentiate the current study with existing studies focusing on the relationship between PES and performance, the current study investigates the driving forces of PES in the nexus of the PES-performance. Further, it examines performance from both environmental and financial perspectives. As such, the model in this thesis identifies six key variables which include (i) organizational resources, (ii) organizational capabilities, (iii) PES, (iv) competitive advantage, (v) environmental performance, and (vi) financial performance. The current study used model comparison techniques and identified a two-tier structure of factors which are associated with organizational resources and capabilities before investigating causality. For the empirical analysis, the current study employed the structural equation modeling (SEM) using from participants in Korean manufacturing.

Our study of 134 North American and European ski resorts examines the influence of externally focused organizational capabilities on the generation of proactive environmental strategies under contingent effects of uncertainty in the general business environment. We find that the capabilities of strategic proactivity and continuous innovation are associated with proactive environmental strategies. Managerial perceptions of uncertainty in the general business environment moderate the deployment of the capability of continuous innovation at all levels of uncertainty and stakeholder engagement at low and average levels of uncertainty. The study contributes to the resource‐based view (RBV) by illuminating an important contingency under which capabilities are likely to be deployed to generate a proactive corporate strategy. Copyright © 2007 ASAC. Published by John Wiley & Sons, Ltd.

Purpose This study aims to investigate the unique mediating role of corporate environmental ethics in the positive relationship between green human resource management practices and the implementation of environmental strategies (reactive environmental strategy and proactive environmental strategy) of manufacturing firms in Vietnam. Design/methodology/approach A cross-sectional survey of 347 manufacturing firms in Vietnam was conducted, and data were analyzed using partial least squares structural equation modeling (PLS-SEM). Findings The findings reveal that firms employing green human resource management tend to prioritize proactive environmental strategy over reactive environmental ones, although green human resource management practices lead to the implementation of both reactive and proactive environmental strategies. Conversely, firms that utilize green human resource management to foster corporate environmental ethics prefer the reactive environmental strategy. Practical implications This study provides critical insights for manufacturing firms aiming to integrate environmentally sustainable practices into their operations. By strategically incorporating green human resource management and corporate environmental ethics, firms can effectively implement feasible and beneficial environmental initiatives that advance their sustainability objectives. Originality/value Drawing on the resource-based view, ability-motivation-opportunity theory and ethics theory of organizing, this study contributes to the existing literature on green human resource management and environmental strategies by examining the role of corporate environmental ethics. This enhances the understanding of how the intensity of different environmental strategies may differ if green human resource management practices or corporate environmental ethics are cultivated.

Does international experience help firms to be green? A knowledge-based view of how international experience and organisational learning influence proactive environmental strategies

Coupling the ecological modernization theory with the natural resource‐based view of firms, we investigate the impact of Industry 4.0 (I4.0) technologies and proactive environmental strategies on firms' environmental performance. Additionally, we assess the mediating effects of circular economy practices and green innovation on the relationship between Industry 4.0 technologies, proactive environmental strategies, and environmental performance. Using a cross‐sectional design, we collected data from the managers and senior executives of 282 apparel manufacturing firms in Bangladesh. Our SEM findings showed that I4.0 technologies and proactive environmental strategies have a positive impact on environmental performance and that circular economy practices and green innovation mediate these relationships. Complementing these findings, our fsQCA results reveal multiple alternative configurations of I4.0 technologies, proactive environmental strategies, circular economy practices, and green innovation that are sufficient for achieving high environmental performance, highlighting causal asymmetry and equifinality. Our findings refine ecological modernization theory and the natural resource‐based view by showing that environmental performance is not the result of isolated drivers, but rather of specific combinations of technological, strategic, and innovation‐oriented capabilities.

Nowadays, scholars exploring the relationship between proactive environmental strategy and firm competitiveness do not focus on the question of whether it pays to be green but rather investigate when, for whom or how it does so. This paper analyzes the links between proactive environmental strategy, technological eco-innovation and firm performance. In particular, it examines the influence of proactive environmental strategy on firm performance and explores this relationship through technological eco-innovation. A research model has been developed and tested using a sample of 292 firms operating in Poland. In order to test the proposed research model and hypotheses, structural equation modeling using partial least squares has been employed. The findings do not confirm that proactive environmental strategy directly affects firm performance. However, the results show the significant mediating role of technological eco-innovation in this relationship. Since the technological eco-innovation reduces environmental impact and improves business performance, this research proves that it simultaneously contributes to environmental and economic pillars of sustainable development.

Pulp and paper companies are characterized by high‐energy consumption and high‐emission in production, placing a heavy burden on the environment. Exploring ways to improve their environmental performance is urgently needed. External coercive pressure from environmental law and internal proactive environmental strategy both enable companies to perform better, but little is known about the difference between them. To close this knowledge gap, our analysis is conducted on a case company in pulp and paper industry to compare the differential impacts of the New Environmental Protection Law of China and the proactive environmental strategy on its environmental performance. In addition, accurately evaluating the environmental performance of pulp and paper companies is essential while research on this topic is scant. Therefore, a novel environmental performance evaluation system for pulp and paper companies (EPESPP) is constructed, including not only internal but also external evaluation indexes based on news reports of various media measured by SNOWNLP sentiment analysis. According to the system, the environmental performance of the case company from 2010 to 2018 is evaluated by the entropy‐weight‐based catastrophe progression method (EWCPM). The results of our case study show that the implementation of a proactive environmental strategy is more conducive to comprehensively improving corporate environmental performance. In other words, the driving effect of the New Environmental Protection Law is not as strong as that of the proactive environmental strategy.

Increasingly severe natural environment pollution makes environmental issue has become a hot issue in strategic management research. Focusing on environmental strategies impact on performance, this paper first reviews the definition development of environmental strategy and then concludes my own definition. Secondly, through detailed documents, this paper will make environmental strategy classification, and ultimately focus on the reactive and proactive environmental strategy. Finally, in the review of the existing environmental impact mechanism, author from the perspective of social capital to explore the mechanism of the impact of the proactive environmental strategy on business performance, so as to provide reference for relevant researchers and practitioners opinion.

Being green and export intensity of SMEs: The moderating influence of perceived uncertainty

Proactive Corporate Environmental Strategies: Myths and Misunderstandings

Environmental issues are becoming critical drivers of firm's competitive advantages. In response, many firms are adopting proactive environmental strategies. A proactive environmental strategy requires a substantial investment of resources from firms, and social capital provides the necessary resources for firms to adopt a proactive environmental strategy. In this article, we explore how social capital contributes to proactive environmental strategy from different perspectives, including marketing, human resources, operations, supply chain, and big data analytics, with the focus on how this issue affects managerial decision-making.

Effects of proactive environmental strategy on environmental performance: Mediation and moderation analyses

Demonstration of environmental sustainability is increasingly seen as important to gaining legitimacy, consumer favour and competitive advantage for service firms. To explore this prospect further, we employed resource‐based theories to study the effect of a proactive environmental strategy (PES) on environmental practices. We argue that the relationship between a PES and environmental practices is positive yet contingent on the perceived importance of information. Using a sample of 2686 service firms from the third Taiwanese Technological Innovation Survey, we found that a PES was positively associated with environmental practices and that perceived external information value positively moderated the PES–environmental practices relationship while perceived internal information value had an insignificant interaction effect. Additional tests provide deeper insight into our predicted relationships. The study makes theoretical, empirical and managerial contributions.

Scholars have dedicated significant efforts to understanding the factors that influence the environmental strategy of a firm, in order to mitigate the negative impacts on the ecosystem. Learning more about the factors that encourage environmental behavior allows managers and policy makers to improve action and advance correctly in this direction. Despite this academic interest, the literature regarding family business has undertaken limited attention over the issue. Hence, our paper aims to advance in this line of research, by empirically examining the relationship between government support in family firms and their investment in environmental protection. Specifically, we intend to analyze whether the family nature, and the government financial support, influence their environmental strategy. The empirical analysis is developed with a sample of 1802 manufacturing firms in Spain, using a binary logistic regression to evaluate the existence of dependency relationships between the analyzed variables. The results show this dependency, confirming family nature and government support as significant factors for a proactive environmental strategy, funding the idea that family character positively affects environmental performance in line with the socio-emotional wealth approach, and these differences are greater if the company operates mainly in a local area. Likewise, family firms that receive state direct and indirect funding, invest more in environmental issues to mitigate negative external impacts. The practical implications of the results obtained are especially useful for managers of family businesses as well as for central governments and local institutions as a matter of reflection. To reduce administrative processes and costs for family firms in terms of direct and indirect support is of great importance, as an inadequate process may become a barrier to develop environmental strategies.

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