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Corporate environmentalism pursuit by foreign firms competing in China

  • Chan, Ricky Y.K.
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    This study examines the relationships among environmental orientation, environmental strategy, firm performance, and regulatory stakeholder influence. Survey data collected from foreign invested enterprises (FIEs) in China show that while internal environmental orientation positively influences environmental corporate (but not marketing) strategies, external environmental orientation positively influences both. These two types of environmental strategy are, in turn, found to positively affect firm performance. Regulatory stakeholder influence is found to exert a direct effect on external environmental orientation. Moreover, it is found to positively moderate the relationship between environmental orientation and environmental strategy. These findings provide FIE executives with useful insights into enhancing firm performance through the pursuit of corporate environmentalism.

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    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 45 (2010)
    Issue (Month): 1 (January)
    Pages: 80-92

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    Handle: RePEc:eee:worbus:v:45:y:2010:i:1:p:80-92
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    1. Ricky Y. K. Chan, 2005. "Does the Natural-Resource-Based View of the Firm Apply in an Emerging Economy? A Survey of Foreign Invested Enterprises in China," Journal of Management Studies, Wiley Blackwell, vol. 42(3), pages 625-672, 05.
    2. William Q. Judge, 1998. "Performance Implications of Incorporating Natural Environmental Issues into the Strategic Planning Process: An Empirical Assessment," Journal of Management Studies, Wiley Blackwell, vol. 35(2), pages 241-262, 03.
    3. Banerjee, Subhabrata Bobby, 2002. "Corporate environmentalism: the construct and its measurement," Journal of Business Research, Elsevier, vol. 55(3), pages 177-191, March.
    4. Subhabrata Bobby Banerjee, 2001. "Managerial perceptions of corporate environmentalism: interpretations from industry and strategic implications for organizations," Journal of Management Studies, Wiley Blackwell, vol. 38(4), pages 489-513, 06.
    5. Petra Christmann & Glen Taylor, 2001. "Globalization and the Environment: Determinants of Firm Self-Regulation in China," Journal of International Business Studies, Palgrave Macmillan, vol. 32(3), pages 439-458, September.
    6. Yadong Luo & Seung Ho Park, 2004. "Multiparty cooperation and performance in international equity joint ventures," Journal of International Business Studies, Palgrave Macmillan, vol. 35(4), pages 334-335, July.
    7. John Child, 2005. "The Dynamic Between Firms' Environmental Strategies and Institutional Constraints in Emerging Economies: Evidence from China and Taiwan," Journal of Management Studies, Wiley Blackwell, vol. 42(1), pages 95-125, 01.
    8. Yuanqiong He & Zhilong Tian & Yun Chen, 2007. "Performance implications of nonmarket strategy in China," Asia Pacific Journal of Management, Springer, vol. 24(2), pages 151-169, June.
    9. Yadong Luo & Seung H Park, 2004. "Multiparty cooperation and performance in international equity joint ventures," Journal of International Business Studies, Palgrave Macmillan, vol. 35(2), pages 142-160, March.
    10. Robert D. Klassen & Curtis P. McLaughlin, 1996. "The Impact of Environmental Management on Firm Performance," Management Science, INFORMS, vol. 42(8), pages 1199-1214, August.
    11. Michael E. Porter & Claas van der Linde, 1995. "Toward a New Conception of the Environment-Competitiveness Relationship," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 97-118, Fall.
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