From collaboration to capability: The role of NGO partnerships in enhancing operational environmental management

This study examines how partnerships between corporations and non-governmental organizations (NGOs) are related to the development of internal environmental capabilities, with a specific focus on the effectiveness of Environmental Management Teams (EMTs). Drawing on the Dynamic Capabilities (DC) framework, we conceptualize NGO collaborations as strategic resources that enable firms to sense, seize, and transform environmental opportunities at the operational level. Using a unique dataset of over 25,000 firm-year observations across multiple countries and industries, we employ a series of econometric models, including Ordinary Least Squares (OLS), Feasible Generalized Least Squares (FGLS), hierarchical linear modeling (HLM), Propensity Score Matching (PSM), and Inverse Probability Weighting (IPW), to assess the robustness of the relationship. The results consistently show that NGO partnerships are positively and significantly associated with higher EMT scores. Furthermore, internal leadership variables such as executive ESG participation and board size are identified as essential enablers of this relationship. These findings contribute to the literature on stakeholder engagement and environmental strategy by demonstrating how external collaborations can activate internal learning mechanisms and foster the development of dynamic capabilities. The study also offers managerial insights by identifying structural conditions under which NGO partnerships are most likely to support operational environmental improvements.