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An assessment of the construct validity of environmental strategy measures

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Author Info

  • Walls, Judith L.

    (University of Michigan)

  • Phan, Philip H.

    (Johns Hopkins University)

  • Berrone, Pascual

    ()
    (IESE Business School)

Abstract

The natural resource-based view of the company is emerging as a dominant paradigm for understanding the intersection of strategic management and the natural environment. Companies that proactively incorporate a natural environment perspective into their enterprise strategies are said to have sustainable competitive advantages. However, defining and measuring environmental strategy has been challenging, with different approaches yielding inconsistent results. Many studies ignore the empirical difficulties of marrying the theoretical connection between the company's resource base and environmental strategy, and its impact on environmental company performance. In this paper, we apply an inductive approach to derive a measure of environmental strategy theoretically congruent with the natural resource-based-view of the firm. We assess its reliability and, using a multi-trait multi-method matrix, confirm the convergent and discriminant validities of this measure against other measures often used by researchers. We also establish predictive validity of our environmental strategy measure for environmental performance. We discuss the implications of the measure for future research and practice.

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Bibliographic Info

Paper provided by IESE Business School in its series IESE Research Papers with number D/754.

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Length: 30 pages
Date of creation: 08 May 2008
Date of revision:
Handle: RePEc:ebg:iesewp:d-0754

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Postal: IESE Business School, Av Pearson 21, 08034 Barcelona, SPAIN
Web page: http://www.iese.edu/
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Related research

Keywords: environmental performance; environmental strategies; inductive study; measures;

This paper has been announced in the following NEP Reports:

References

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  1. Aragon-Correa, Juan Alberto & Matias-Reche, Fernando & Senise-Barrio, Maria Eugenia, 2004. "Managerial discretion and corporate commitment to the natural environment," Journal of Business Research, Elsevier, vol. 57(9), pages 964-975, September.
  2. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and Sustainability of Competitive Advantage," Management Science, INFORMS, vol. 35(12), pages 1504-1511, December.
  3. Thomas P. Lyon & John W. Maxwell, 2011. "Greenwash: Corporate Environmental Disclosure under Threat of Audit," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 20(1), pages 3-41, 03.
  4. Catherine J. Morrison-Paul & Donald S. Siegel, 2006. "Corporate Social Responsibility and Economic Performance," Rensselaer Working Papers in Economics 0605, Rensselaer Polytechnic Institute, Department of Economics.
  5. Cerin, Pontus & Karlson, Lennart, 2002. "Business incentives for sustainability: a property rights approach," Ecological Economics, Elsevier, vol. 40(1), pages 13-22, January.
  6. Andrew King & Michael Lenox, 2002. "Exploring the Locus of Profitable Pollution Reduction," Management Science, INFORMS, vol. 48(2), pages 289-299, February.
  7. Eric Van den Steen, 2005. "Organizational Beliefs and Managerial Vision," Journal of Law, Economics and Organization, Oxford University Press, vol. 21(1), pages 256-283, April.
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Cited by:
  1. Mikko Manner, 2010. "The Impact of CEO Characteristics on Corporate Social Performance," Journal of Business Ethics, Springer, vol. 93(1), pages 53-72, June.

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