Location, Networks and Firm Environmental Management Practices

Firms face a multitude of barriers in their attempt to manage the environmental impacts of their operations. These may include economic, information- and knowledge-related, organizational and technical factors. To overcome such barriers, in-house resources and capabilities may need to be supplemented by external ones. This paper draws from the regional economic literature and the literature on networks to examine the role that firm location and participation in networks may play in enhancing a firm's ability to engage in environmental management, thus implicitly overcoming some of these barriers. In a sample of 180 firms operating in Cyprus, a relationship was found between a firm's location and participation in networks and the extent of use of environmental management measures by that firm. Specifically, there is a relationship between, first, firm location and the extent of use of end-of-pipe measures and, second, firm participation in networks and the extent of use of both end-of-pipe and pollution prevention measures. These findings are supported by the regional economic and network literatures.