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Adopting Proactive Environmental Strategy: The Influence of Stakeholders and Firm Size

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  • Nicole Darnall
  • Irene Henriques
  • Perry Sadorsky
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    Abstract

    While smaller firms are less likely to undertake as many environmental practices as larger firms, extant literature suggests that smaller firms may be more responsive to stakeholder pressures. This paper contributes to the development of stakeholder theory by deriving a size moderated stakeholder model and applying it to a firm's adoption of proactive environmental practices. The empirical results show that smaller firms are more responsive to value-chain, internal, and regulatory stakeholder pressures. These findings suggest that researchers evaluating organizations and the natural environment should be cautious about associating stakeholder pressures directly with firms' environmental strategies. Rather, the relationship between stakeholder pressures and environmental strategy tends to vary with size. Copyright (c) Blackwell Publishing Ltd 2009.

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Journal of Management Studies.

    Volume (Year): 47 (2010)
    Issue (Month): 6 (09)
    Pages: 1072-1094

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    Handle: RePEc:bla:jomstd:v:47:y:2010:i:6:p:1072-1094

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    Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2380

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    Cited by:
    1. X. Meng & S. Zeng & C. Tam, 2013. "From Voluntarism to Regulation: A Study on Ownership, Economic Performance and Corporate Environmental Information Disclosure in China," Journal of Business Ethics, Springer, vol. 116(1), pages 217-232, August.
    2. Julia Wolf, 2014. "The Relationship Between Sustainable Supply Chain Management, Stakeholder Pressure and Corporate Sustainability Performance," Journal of Business Ethics, Springer, vol. 119(3), pages 317-328, February.
    3. Holtbrügge, Dirk & Dögl, Corinna, 2012. "How international is corporate environmental responsibility? A literature review," Journal of International Management, Elsevier, vol. 18(2), pages 180-195.
    4. Esben Pedersen & Wencke Gwozdz, 2014. "From Resistance to Opportunity-Seeking: Strategic Responses to Institutional Pressures for Corporate Social Responsibility in the Nordic Fashion Industry," Journal of Business Ethics, Springer, vol. 119(2), pages 245-264, January.
    5. Dayna Simpson & Damien Power & Robert Klassen, 2012. "When One Size Does Not Fit All: A Problem of Fit Rather than Failure for Voluntary Management Standards," Journal of Business Ethics, Springer, vol. 110(1), pages 85-95, September.
    6. X. Meng & S. Zeng & C. Tam & X. Xu, 2013. "Whether Top Executives’ Turnover Influences Environmental Responsibility: From the Perspective of Environmental Information Disclosure," Journal of Business Ethics, Springer, vol. 114(2), pages 341-353, May.
    7. Rosario Vázquez-Carrasco & M. López-Pérez, 2013. "Small & medium-sized enterprises and Corporate Social Responsibility: a systematic review of the literature," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(6), pages 3205-3218, October.

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