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Local Environmental Non-Profit Organizations and the Green Investment Strategies of Family Firms

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  • Maggioni, Daniela
  • Santangelo, Grazia D.

Abstract

We add to the debate on the determinants of firms' green investment strategies (GIS) by looking at societal stakeholders and explicitly testing the role of local environmental non-profit organizations (ENPOs) in GIS engagement by family and non-family firms. We argue that ENPOs favor GIS engagement only by family firms, which, due to their resource constraints, risk aversion and local embeddedness, are more sensitive to ENPOs normative pressure. We also suggest that the role of ENPOs is especially important for family firms' GIS in those sectors with less stringent regulations, where ENPOs may act as a substitute for the coercive pressure of regulation, and promote firms' self-regulatory behaviors. We test and find support for our arguments on a sample of about 2000 Italian manufacturing firms over the period 2001–2003. Our results are robust to the control of observable omitted variables, reverse causality and to alternative model specifications.

Suggested Citation

  • Maggioni, Daniela & Santangelo, Grazia D., 2017. "Local Environmental Non-Profit Organizations and the Green Investment Strategies of Family Firms," Ecological Economics, Elsevier, vol. 138(C), pages 126-138.
    • Handle: RePEc:eee:ecolec:v:138:y:2017:i:c:p:126-138
    DOI: 10.1016/j.ecolecon.2017.03.026
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    3. Christoph Stock & Laura Pütz & Sabrina Schell & Arndt Werner, 2024. "Corporate Social Responsibility in Family Firms: Status and Future Directions of a Research Field," Journal of Business Ethics, Springer, vol. 190(1), pages 199-259, February.
    4. Yucai Hu & Shaorui Du & Yukun Wang & Xinya Yang, 2023. "How Does Green Insurance Affect Green Innovation? Evidence from China," Sustainability, MDPI, vol. 15(16), pages 1-15, August.

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    More about this item

    Keywords

    ENPOs; GIS; Sectoral regulation; Family firms;
    All these keywords.

    JEL classification:

    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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