IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v27y2018i3p359-374.html
   My bibliography  Save this article

Linking Environmental Management to Environmental Performance: The Interactive Role of Industry Context

Author

Listed:
  • Julia Hartmann
  • Stephan Vachon

Abstract

In the past, corporate sustainability scholars advocated that, for many firms, environmental management could turn into a valuable capability conferring a competitive advantage. However, little attention has been paid to the role of the industry context and its influence on the relationship between environmental management and organizational performance. In this study, we examine the effect on this relationship of three contextual variables: munificence, dynamism and complexity. Drawing on longitudinal data from 336 firms representing 30 industries, we find that munificence enhances the degree to which a firm can leverage its environmental management capabilities to improve environmental performance. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

Suggested Citation

  • Julia Hartmann & Stephan Vachon, 2018. "Linking Environmental Management to Environmental Performance: The Interactive Role of Industry Context," Business Strategy and the Environment, Wiley Blackwell, vol. 27(3), pages 359-374, March.
  • Handle: RePEc:bla:bstrat:v:27:y:2018:i:3:p:359-374
    DOI: 10.1002/bse.2003
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.2003
    Download Restriction: no

    File URL: https://libkey.io/10.1002/bse.2003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Olga Hawn & Ioannis Ioannou, 2016. "Mind the gap: The interplay between external and internal actions in the case of corporate social responsibility," Strategic Management Journal, Wiley Blackwell, vol. 37(13), pages 2569-2588, December.
    2. Hongquan Chen & Saixing Zeng & Han Lin & Hanyang Ma, 2017. "Munificence, Dynamism, and Complexity: How Industry Context Drives Corporate Sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 26(2), pages 125-141, February.
    3. De Marchi, Valentina, 2012. "Environmental innovation and R&D cooperation: Empirical evidence from Spanish manufacturing firms," Research Policy, Elsevier, vol. 41(3), pages 614-623.
    4. Robert G. Eccles & Ioannis Ioannou & George Serafeim, 2014. "The Impact of Corporate Sustainability on Organizational Processes and Performance," Management Science, INFORMS, vol. 60(11), pages 2835-2857, November.
    5. Kent Walker & Na Ni & Bruno Dyck, 2015. "Recipes for Successful Sustainability: Empirical Organizational Configurations for Strong Corporate Environmental Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 24(1), pages 40-57, January.
    6. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    7. Nicole Darnall & G. Jason Jolley & Robert Handfield, 2008. "Environmental management systems and green supply chain management: complements for sustainability?," Business Strategy and the Environment, Wiley Blackwell, vol. 17(1), pages 30-45, January.
    8. Pratima Bansal, 2005. "Evolving sustainably: a longitudinal study of corporate sustainable development," Strategic Management Journal, Wiley Blackwell, vol. 26(3), pages 197-218, March.
    9. Ki‐Hoon Lee & Beom Cheol Cin & Eui Young Lee, 2016. "Environmental Responsibility and Firm Performance: The Application of an Environmental, Social and Governance Model," Business Strategy and the Environment, Wiley Blackwell, vol. 25(1), pages 40-53, January.
    10. Stephen Brammer & Stephen Pavelin, 2008. "Factors influencing the quality of corporate environmental disclosure," Business Strategy and the Environment, Wiley Blackwell, vol. 17(2), pages 120-136, February.
    11. William Ocasio, 1997. "Towards An Attention‐Based View Of The Firm," Strategic Management Journal, Wiley Blackwell, vol. 18(S1), pages 187-206, July.
    12. Sandra Rothenberg & Stelios C. Zyglidopoulos, 2007. "Determinants of environmental innovation adoption in the printing industry: the importance of task environment," Business Strategy and the Environment, Wiley Blackwell, vol. 16(1), pages 39-49, January.
    13. Justin Doran & Geraldine Ryan, 2016. "The Importance of the Diverse Drivers and Types of Environmental Innovation for Firm Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 25(2), pages 102-119, February.
    14. Rosa Maria Dangelico, 2015. "Improving Firm Environmental Performance and Reputation: The Role of Employee Green Teams," Business Strategy and the Environment, Wiley Blackwell, vol. 24(8), pages 735-749, December.
    15. Danny Miller, 1987. "The structural and environmental correlates of business strategy," Strategic Management Journal, Wiley Blackwell, vol. 8(1), pages 55-76, January.
    16. Klaus Wersching, 2010. "Schumpeterian Competition, Technological Regimes and Learning through Knowledge Spillover," Post-Print hal-00849408, HAL.
    17. Petra Christmann & Glen Taylor, 2001. "Globalization and the Environment: Determinants of Firm Self-Regulation in China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(3), pages 439-458, September.
    18. Vachon, Stephan & Klassen, Robert D., 2008. "Environmental management and manufacturing performance: The role of collaboration in the supply chain," International Journal of Production Economics, Elsevier, vol. 111(2), pages 299-315, February.
    19. William P. Wan & Daphne W. Yiu, 2009. "From crisis to opportunity: environmental jolt, corporate acquisitions, and firm performance," Strategic Management Journal, Wiley Blackwell, vol. 30(7), pages 791-801, July.
    20. Dayna Simpson & Danny Samson, 2010. "Environmental strategy and low waste operations: exploring complementarities," Business Strategy and the Environment, Wiley Blackwell, vol. 19(2), pages 104-118, February.
    21. Robert D. Klassen & Curtis P. McLaughlin, 1996. "The Impact of Environmental Management on Firm Performance," Management Science, INFORMS, vol. 42(8), pages 1199-1214, August.
    22. Danny Miller & Peter H. Friesen, 1983. "Strategy‐making and environment: The third link," Strategic Management Journal, Wiley Blackwell, vol. 4(3), pages 221-235, July.
    23. Ioannis Ioannou & George Serafeim, 2012. "What drives corporate social performance? The role of nation-level institutions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(9), pages 834-864, December.
    24. Wersching, Klaus, 2010. "Schumpeterian competition, technological regimes and learning through knowledge spillover," Journal of Economic Behavior & Organization, Elsevier, vol. 75(3), pages 482-493, September.
    25. Jean D. Kabongo & Olivier Boiral, 2017. "Doing More with Less: Building Dynamic Capabilities for Eco‐Efficiency," Business Strategy and the Environment, Wiley Blackwell, vol. 26(7), pages 956-971, November.
    26. Mar Fuentes-Fuentes, M. & Albacete-Sáez, Carlos A. & Lloréns-Montes, F. Javier, 2004. "The impact of environmental characteristics on TQM principles and organizational performance," Omega, Elsevier, vol. 32(6), pages 425-442, December.
    27. Stephan Vachon & Sara Hajmohammad, 2016. "Supply chain uncertainty and environmental management," Asian Journal of Sustainability and Social Responsibility, Springer, vol. 1(1), pages 77-89, December.
    28. Magali Delmas & Michael W. Toffel, 2004. "Stakeholders and environmental management practices: an institutional framework," Business Strategy and the Environment, Wiley Blackwell, vol. 13(4), pages 209-222, July.
    29. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    30. Haitao Yin & Peter J. Schmeidler, 2009. "Why do standardized ISO 14001 environmental management systems lead to heterogeneous environmental outcomes?," Business Strategy and the Environment, Wiley Blackwell, vol. 18(7), pages 469-486, November.
    31. Andrew King & Michael Lenox, 2002. "Exploring the Locus of Profitable Pollution Reduction," Management Science, INFORMS, vol. 48(2), pages 289-299, February.
    32. Hartmann, Julia & Uhlenbruck, Klaus, 2015. "National institutional antecedents to corporate environmental performance," Journal of World Business, Elsevier, vol. 50(4), pages 729-741.
    33. Bruce Kogut & Udo Zander, 1996. "What Firms Do? Coordination, Identity, and Learning," Organization Science, INFORMS, vol. 7(5), pages 502-518, October.
    34. Sarkis, Joseph & Zhu, Qinghua & Lai, Kee-hung, 2011. "An organizational theoretic review of green supply chain management literature," International Journal of Production Economics, Elsevier, vol. 130(1), pages 1-15, March.
    35. Maurizio Zollo & Sidney G. Winter, 2002. "Deliberate Learning and the Evolution of Dynamic Capabilities," Organization Science, INFORMS, vol. 13(3), pages 339-351, June.
    36. David G. Sirmon & Michael A. Hitt, 2009. "Contingencies within dynamic managerial capabilities: interdependent effects of resource investment and deployment on firm performance," Strategic Management Journal, Wiley Blackwell, vol. 30(13), pages 1375-1394, December.
    37. Judith L. Walls & Pascual Berrone & Phillip H. Phan, 2012. "Corporate governance and environmental performance: is there really a link?," Strategic Management Journal, Wiley Blackwell, vol. 33(8), pages 885-913, August.
    38. Caroline Flammer, 2015. "Does product market competition foster corporate social responsibility? Evidence from trade liberalization," Strategic Management Journal, Wiley Blackwell, vol. 36(10), pages 1469-1485, October.
    39. Wayne S. DeSarbo & C. Anthony Di Benedetto & Michael Song & Indrajit Sinha, 2005. "Revisiting the Miles and Snow strategic framework: uncovering interrelationships between strategic types, capabilities, environmental uncertainty, and firm performance," Strategic Management Journal, Wiley Blackwell, vol. 26(1), pages 47-74, January.
    40. Baruch Lev & Christine Petrovits & Suresh Radhakrishnan, 2010. "Is doing good good for you? how corporate charitable contributions enhance revenue growth," Strategic Management Journal, Wiley Blackwell, vol. 31(2), pages 182-200, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yogesh Bhatt & Karminder Ghuman, 2023. "Corporate environmental responsiveness: a bibliometric and content analysis," Management Review Quarterly, Springer, vol. 73(3), pages 1303-1350, September.
    2. Wu, Guo-Ciang & Ding, Jyh-Hong & Chen, Ping-Shun, 2012. "The effects of GSCM drivers and institutional pressures on GSCM practices in Taiwan’s textile and apparel industry," International Journal of Production Economics, Elsevier, vol. 135(2), pages 618-636.
    3. Rick Hardcopf & Rachna Shah & Suvrat Dhanorkar, 2021. "The Impact of a Spill or Pollution Accident on Firm Environmental Activity: An Empirical Investigation," Production and Operations Management, Production and Operations Management Society, vol. 30(8), pages 2467-2491, August.
    4. Yann Truong & Brian G. Nagy, 2021. "Nascent ventures’ green initiatives and angel investor judgments of legitimacy and funding," Small Business Economics, Springer, vol. 57(4), pages 1801-1818, December.
    5. Isabel‐María García‐Sánchez & Isabel Gallego‐Álvarez & José‐Luis Zafra‐Gómez, 2020. "Do the ecoinnovation and ecodesign strategies generate value added in munificent environments?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1021-1033, March.
    6. David G Hyatt & Nicholas Berente, 2017. "Substantive or Symbolic Environmental Strategies? Effects of External and Internal Normative Stakeholder Pressures," Business Strategy and the Environment, Wiley Blackwell, vol. 26(8), pages 1212-1234, December.
    7. Eduardo Duque‐Grisales & Javier Aguilera‐Caracuel & Jaime Guerrero‐Villegas & Encarnación García‐Sánchez, 2020. "Does green innovation affect the financial performance of Multilatinas? The moderating role of ISO 14001 and R&D investment," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3286-3302, December.
    8. Hongquan Chen & Saixing Zeng & Han Lin & Hanyang Ma, 2017. "Munificence, Dynamism, and Complexity: How Industry Context Drives Corporate Sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 26(2), pages 125-141, February.
    9. Ammar Masood & Mohsin Altaf & Mohsin Raza Khan & Tanveer Illahi & Abdul Qayyum, 2021. "Industrial Environmental Performance: Mapping And Systematic Literature Review," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(4), pages 76-100, December.
    10. Aseem Kaul & Jiao Luo, 2018. "An economic case for CSR: The comparative efficiency of for‐profit firms in meeting consumer demand for social goods," Strategic Management Journal, Wiley Blackwell, vol. 39(6), pages 1650-1677, June.
    11. Siying Long & Zhongju Liao, 2021. "Are fiscal policy incentives effective in stimulating firms' eco‐product innovation? The moderating role of dynamic capabilities," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3095-3104, November.
    12. Peter S. Hofman & Constantin Blome & Martin C. Schleper & Nachiappan Subramanian, 2020. "Supply chain collaboration and eco‐innovations: An institutional perspective from China," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2734-2754, September.
    13. Adomako, Samuel & Abdelgawad, Sondos G. & Ahsan, Mujtaba & Amankwah-Amoah, Joseph & Azaaviele Liedong, Tahiru, 2023. "Nonmarket strategy in emerging markets: The link between SMEs’ corporate political activity, corporate social responsibility, and firm competitiveness," Journal of Business Research, Elsevier, vol. 160(C).
    14. Yu‐Xiang Yen, 2018. "Buyer–supplier collaboration in green practices: The driving effects from stakeholders," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1666-1678, December.
    15. Mingfeng Tang & Grace Walsh & Daniel Lerner & Markus A. Fitza & Qiaohua Li, 2018. "Green Innovation, Managerial Concern and Firm Performance: An Empirical Study," Business Strategy and the Environment, Wiley Blackwell, vol. 27(1), pages 39-51, January.
    16. Busch, Timo, 2011. "Organizational adaptation to disruptions in the natural environment: The case of climate change," Scandinavian Journal of Management, Elsevier, vol. 27(4), pages 389-404.
    17. Ki‐Hoon Lee & Donghoon Shin & Minwoo Lee, 2023. "Business group affiliation and corporate sustainability performance in emerging economies: Evidence from South Korea," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4503-4518, November.
    18. Valentina Marano & Steve Sauerwald & Marc Essen, 2022. "The influence of culture on the relationship between women directors and corporate social performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(7), pages 1315-1342, September.
    19. Schrettle, Stefan & Hinz, Andreas & Scherrer -Rathje, Maike & Friedli, Thomas, 2014. "Turning sustainability into action: Explaining firms' sustainability efforts and their impact on firm performance," International Journal of Production Economics, Elsevier, vol. 147(PA), pages 73-84.
    20. Tariq, Adeel & Badir, Yuosre F. & Tariq, Waqas & Bhutta, Umair Saeed, 2017. "Drivers and consequences of green product and process innovation: A systematic review, conceptual framework, and future outlook," Technology in Society, Elsevier, vol. 51(C), pages 8-23.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:27:y:2018:i:3:p:359-374. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.