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Environmental sustainability orientation, competitive strategy and financial performance

Author

Listed:
  • Albert Danso
  • Samuel Adomako
  • Joseph Amankwah‐Amoah
  • Samuel Owusu‐Agyei
  • Renata Konadu

Abstract

Extant research has established that environmental sustainability orientation (ESO) has a positive influence on performance outcomes. Nevertheless, several contingencies tend to affect the strength of this relationship. In this study, we draw on natural resource‐based theory to introduce competitive strategies as moderators in the ESO–performance nexus. Using time‐lagged data obtained from 269 firms in Ghana, this study finds that firms pursuing the differentiation strategy can positively boost performance outcomes with ESO than without differentiation strategy. We also find that firms can use the low‐cost or the integrated strategy to get higher impact on performance with ESO, respectively. Based on the results, firms in Ghana do not need differentiation strategy in order to boost the effect of ESO on financial performance. Theoretical and practical implications are discussed.

Suggested Citation

  • Albert Danso & Samuel Adomako & Joseph Amankwah‐Amoah & Samuel Owusu‐Agyei & Renata Konadu, 2019. "Environmental sustainability orientation, competitive strategy and financial performance," Business Strategy and the Environment, Wiley Blackwell, vol. 28(5), pages 885-895, July.
    • Handle: RePEc:bla:bstrat:v:28:y:2019:i:5:p:885-895
    DOI: 10.1002/bse.2291
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    References listed on IDEAS

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