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Stakeholder–firm power difference, stakeholders' CSR orientation, and SMEs' environmental performance in China

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  • Tang, Zhi
  • Tang, Jintong

Abstract

Although stakeholder power theory has been at the forefront of environmental studies, extant research has focused on stakeholders' power while firms' countering power has not been systematically examined. Furthermore, different stakeholders may prioritize social goals differently. In this paper, we propose that stakeholder–firm power difference determines firms' environmental performance and stakeholders' CSR orientation (i.e., the degree to which a stakeholder holds firms' engagement in CSR as important) moderates this relationship. Utilizing a sample of 144 Chinese small- and medium-sized enterprises (SMEs), we found that governments-, competitors-, and the media-firm power difference indeed significantly affect Chinese SMEs' environmental performance. Besides, governments' and the media's CSR orientation moderate the relationship between stakeholder–firm power difference and firms' environmental performance. Research and practical implications are discussed.

Suggested Citation

  • Tang, Zhi & Tang, Jintong, 2012. "Stakeholder–firm power difference, stakeholders' CSR orientation, and SMEs' environmental performance in China," Journal of Business Venturing, Elsevier, vol. 27(4), pages 436-455.
  • Handle: RePEc:eee:jbvent:v:27:y:2012:i:4:p:436-455
    DOI: 10.1016/j.jbusvent.2011.11.007
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    References listed on IDEAS

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    Cited by:

    1. Mohamed Akli Achabou & Adel Rink, 2014. "Barrières et motivations pour la consommation des produits de la mode éthique en France," Working Papers 2014-138, Department of Research, Ipag Business School.
    2. Douglas Cumming & Wenxuan Hou & Edward Lee, 2016. "Business Ethics and Finance in Greater China: Synthesis and Future Directions in Sustainability, CSR, and Fraud," Journal of Business Ethics, Springer, vol. 138(4), pages 601-626, November.
    3. Zhu, Qinghua & Geng, Yong & Sarkis, Joseph, 2016. "Shifting Chinese organizational responses to evolving greening pressures," Ecological Economics, Elsevier, vol. 121(C), pages 65-74.
    4. Fulvio Castellacci & Christine Mee Lie, 2016. "A Taxonomy Of Green Innovators:Empirical Evidence From South Korea," Working Papers on Innovation Studies 20160808, Centre for Technology, Innovation and Culture, University of Oslo.
    5. Achabou, Mohamed Akli & Dekhili, Sihem, 2013. "Luxury and sustainable development: Is there a match?," Journal of Business Research, Elsevier, vol. 66(10), pages 1896-1903.
    6. McGuinness, Paul B. & Vieito, João Paulo & Wang, Mingzhu, 2017. "The role of board gender and foreign ownership in the CSR performance of Chinese listed firms," Journal of Corporate Finance, Elsevier, vol. 42(C), pages 75-99.
    7. Robert Baron & Hao Zhao & Qing Miao, 2015. "Personal Motives, Moral Disengagement, and Unethical Decisions by Entrepreneurs: Cognitive Mechanisms on the “Slippery Slope”," Journal of Business Ethics, Springer, vol. 128(1), pages 107-118, April.
    8. Du, Jun & Mickiewicz, Tomasz, 2016. "Subsidies, rent seeking and performance: Being young, small or private in China," Journal of Business Venturing, Elsevier, vol. 31(1), pages 22-38.
    9. Newbert, Scott L. & Tornikoski, Erno T. & Quigley, Narda R., 2013. "Exploring the evolution of supporter networks in the creation of new organizations," Journal of Business Venturing, Elsevier, vol. 28(2), pages 281-298.
    10. May Tan-Mullins & Giles Mohan, 2013. "The potential of corporate environmental responsibility of Chinese state-owned enterprises in Africa," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 15(2), pages 265-284, April.
    11. repec:kap:jbuset:v:143:y:2017:i:4:d:10.1007_s10551-016-3074-1 is not listed on IDEAS
    12. Hori, Shiro & Shinozaki, Mami & Nogata, Daisuke & Fujita, Toshiyuki, 2014. "The role of CSR in promoting companies’ energy-saving actions in two Asian cities," Energy Policy, Elsevier, vol. 69(C), pages 116-121.
    13. repec:spr:jbecon:v:88:y:2018:i:2:d:10.1007_s11573-017-0875-3 is not listed on IDEAS
    14. Zhi Tang & Jintong Tang, 2016. "The Impact of Competitors–Firm Power Divergence on Chinese SMES’ Environmental and Financial Performance," Journal of Business Ethics, Springer, vol. 136(1), pages 147-165, June.

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