Adoption of green strategy by Danish firms

Purpose - – The purpose of this study was to examine the issue of corporate environmentalism from a managerial perspective, specifically in connection to top management commitment and the need for competitive advantage, which can be integrated into the decision making of environmental strategies. Design/methodology/approach - – This study uses data from a recent online survey of 77 Danish firms. Surveyed firms in the study were divided into two categories based on their adoption of a green strategy. Univariate analysis of variance and step-wise discriminant analysis were used to identify variables that discriminate between these firms. Findings - – The results revealed that systematic planning to develop a green strategy coupled with each firm's view of the importance of formulating and implementing a green strategy are the key factors discriminating between the two groups of firms. Research limitations/implications - – Since this study did not consider external factors such as, governmental regulation, NGO pressure, etc. the authors do not rule out the importance of these factors. But it makes sense to conclude both internal and external factors (no necessarily equally) contributing to a successful adoption of green strategy. Practical implications - – It appears that adoption of a green strategy is a result of, mostly, internal factors. These factors are certainly within the control of management. Adopting any new strategy requires a wide range of knowledge and skills. Unfortunately, many managers and employees are deficient on their views about the importance of formulating and pursuing a green strategy. They need to be informed that half-hearted efforts in adopting a green strategy make the process both slow and difficult. Social implications - – Management commitment to systematic planning to develop and implement a green strategy is essential. Committed managers systematically explore the possibilities of gaining competitive advantages through a proactive strategy by transforming the nature of their products and organization. However, the management mindset does not change solely due to inner managerial drives, but in a more complex interplay with outside stakeholders, including customers, consumers, and non-governmental bodies. Therefore, the riskiest venture occurs when the firm and its management are not totally committed. Originality/value - – Developing a foundation for adopting a green strategy and verifying the results should contribute to a more comprehensive managerial understanding of how green strategies should be adopted by firms.