IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i15p8361-d602209.html
   My bibliography  Save this article

Impact of Environmental Orientation on Proactive and Reactive Environmental Strategies: Mediating Role of Business Environmental Commitment

Author

Listed:
  • Farida Saleem

    (Department of Management, College of Business Administration, Prince Sultan University, Riyadh 11586, Saudi Arabia)

  • Saiqa Saddiqa Qureshi

    (Department of Business Administration, Fatima Jinnah Women University, Rawalpindi 46000, Pakistan)

  • Muhammad Imran Malik

    (Department of Management Sciences, Attock Campus, COMSATS University Islamabad, Attock 43600, Pakistan)

Abstract

Although they are significant contributors to environmental concerns, emerging economies provide a very different context concerning corporate environmental behavior. The study investigates the impact of environmental orientation and business environmental commitment on proactive and reactive environmental strategies by firms in an emerging economy. Based on stakeholder perspective, organizational legitimacy concept, and natural-resource-based view, we have proposed a model where business environmental commitment is presented as an explanatory mechanism for the relationship of internal and external environmental orientation and proactive and reactive environmental strategies. A convenient sampling method was used for data collection from 152 SMEs operating in three industrial cities of Pakistan. Structural equation modeling (SEM) was used as an analysis technique. Results revealed that internal environmental orientation has a more profound impact on proactive stance than the impact of external environmental orientation on reactive environmental strategies. Similarly, the business environmental commitment was also identified as an important mediating force. Our results draw important implications for theory and practice.

Suggested Citation

  • Farida Saleem & Saiqa Saddiqa Qureshi & Muhammad Imran Malik, 2021. "Impact of Environmental Orientation on Proactive and Reactive Environmental Strategies: Mediating Role of Business Environmental Commitment," Sustainability, MDPI, vol. 13(15), pages 1-16, July.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:15:p:8361-:d:602209
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/15/8361/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/15/8361/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Menguc, Bulent & Ozanne, Lucie K., 2005. "Challenges of the "green imperative": a natural resource-based approach to the environmental orientation-business performance relationship," Journal of Business Research, Elsevier, vol. 58(4), pages 430-438, April.
    2. Byung Il Park & Jiyul Choi, 2015. "Stakeholder Influence on Local Corporate Social Responsibility Activities of Korean Multinational Enterprise Subsidiaries," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 51(2), pages 335-350, March.
    3. Farida Saleem & C. Gopinath & Amira Khattak & Saiqa Saddiqa Qureshi & Alawiya Allui & Ahmad Adeel, 2020. "Corporate Environmentalism: An Emerging Economy Perspective," Sustainability, MDPI, vol. 12(15), pages 1-17, August.
    4. Marie‐Josée Roy & Olivier Boiral & Denis Lagacé, 2001. "Environmental commitment and manufacturing excellence: a comparative study within Canadian industry," Business Strategy and the Environment, Wiley Blackwell, vol. 10(5), pages 257-268, September.
    5. Martin Lindell & Necmi Karagozoglu, 2001. "Corporate environmental behaviour – a comparison between Nordic and US firms," Business Strategy and the Environment, Wiley Blackwell, vol. 10(1), pages 38-52, January.
    6. Kristel Buysse & Alain Verbeke, 2003. "Proactive environmental strategies: a stakeholder management perspective," Strategic Management Journal, Wiley Blackwell, vol. 24(5), pages 453-470, May.
    7. Bhaskar Chatterjee & Nayan Mitra, 2017. "CSR should contribute to the national agenda in emerging economies - the ‘Chatterjee Model’," International Journal of Corporate Social Responsibility, Springer, vol. 2(1), pages 1-11, December.
    8. Sanjay Sharma & Irene Henriques, 2005. "Stakeholder influences on sustainability practices in the Canadian forest products industry," Strategic Management Journal, Wiley Blackwell, vol. 26(2), pages 159-180, February.
    9. C. K. Prahalad & Richard A. Bettis, 1986. "The dominant logic: A new linkage between diversity and performance," Strategic Management Journal, Wiley Blackwell, vol. 7(6), pages 485-501, November.
    10. Paul Shrivastava, 1995. "Environmental technologies and competitive advantage," Strategic Management Journal, Wiley Blackwell, vol. 16(S1), pages 183-200.
    11. Waris Ali & Jedrzej George Frynas & Zeeshan Mahmood, 2017. "Determinants of Corporate Social Responsibility (CSR) Disclosure in Developed and Developing Countries: A Literature Review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(4), pages 273-294, July.
    12. Ali Meftah Gerged & Eshani Beddewela & Christopher J. Cowton, 2021. "Is corporate environmental disclosure associated with firm value? A multicountry study of Gulf Cooperation Council firms," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 185-203, January.
    13. Kyungho Kim, 2018. "Proactive versus Reactive Corporate Environmental Practices and Environmental Performance," Sustainability, MDPI, vol. 10(1), pages 1-19, January.
    14. González-Benito, Javier & González-Benito, Óscar, 2005. "Environmental proactivity and business performance: an empirical analysis," Omega, Elsevier, vol. 33(1), pages 1-15, February.
    15. Banerjee, Subhabrata Bobby, 2002. "Corporate environmentalism: the construct and its measurement," Journal of Business Research, Elsevier, vol. 55(3), pages 177-191, March.
    16. Banjo Roxas & Doren Chadee, 2012. "Environmental sustainability orientation and financial resources of small manufacturing firms in the Philippines," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 8(2), pages 208-226, June.
    17. Zhiqiang Liu & Ji Li & Hong Zhu & Zhenyao Cai & Luning Wang, 2014. "Chinese firms’ sustainable development—The role of future orientation, environmental commitment, and employee training," Asia Pacific Journal of Management, Springer, vol. 31(1), pages 195-213, March.
    18. Daryl G. Mitton, 1989. "The Compleat Entrepreneur," Entrepreneurship Theory and Practice, , vol. 13(3), pages 9-20, April.
    19. Hao Zhang & Jie He & Xiaomeng Shi & Qiong Hong & Jie Bao & Shuqi Xue, 2020. "Technology Characteristics, Stakeholder Pressure, Social Influence, and Green Innovation: Empirical Evidence from Chinese Express Companies," Sustainability, MDPI, vol. 12(7), pages 1-19, April.
    20. Linnenluecke, Martina K. & Griffiths, Andrew, 2010. "Corporate sustainability and organizational culture," Journal of World Business, Elsevier, vol. 45(4), pages 357-366, October.
    21. Baoliang Hu & Tao Zhang & Shuai Yan, 2020. "How Corporate Social Responsibility Influences Business Model Innovation: The Mediating Role of Organizational Legitimacy," Sustainability, MDPI, vol. 12(7), pages 1-18, March.
    22. Chan, Ricky Y.K., 2010. "Corporate environmentalism pursuit by foreign firms competing in China," Journal of World Business, Elsevier, vol. 45(1), pages 80-92, January.
    23. David Gadenne & Jessica Kennedy & Catherine McKeiver, 2009. "An Empirical Study of Environmental Awareness and Practices in SMEs," Journal of Business Ethics, Springer, vol. 84(1), pages 45-63, January.
    24. Badar Latif & Zeeshan Mahmood & Ong Tze San & Ridzwana Mohd Said & Allah Bakhsh, 2020. "Coercive, Normative and Mimetic Pressures as Drivers of Environmental Management Accounting Adoption," Sustainability, MDPI, vol. 12(11), pages 1-14, June.
    25. Elena Fraj-Andrés & Eva Martinez-Salinas & Jorge Matute-Vallejo, 2009. "A Multidimensional Approach to the Influence of Environmental Marketing and Orientation on the Firm’s Organizational Performance," Journal of Business Ethics, Springer, vol. 88(2), pages 263-286, August.
    26. Kevin E. Learned, 1992. "What Happened before the Organization? A Model of Organization Formation," Entrepreneurship Theory and Practice, , vol. 17(1), pages 39-48, October.
    27. Farida Saleem & Yingying Zhang-Zhang & Muhammad Imran Malik & Alawiya Allui, 2020. "Revisiting Stakeholder Theory and Environmentalism: Evidence from an Emerging Economy," Sustainability, MDPI, vol. 12(20), pages 1-20, October.
    28. Deegan, Craig & Blomquist, Christopher, 2006. "Stakeholder influence on corporate reporting: An exploration of the interaction between WWF-Australia and the Australian minerals industry," Accounting, Organizations and Society, Elsevier, vol. 31(4-5), pages 343-372.
    29. Javier González‐Benito & Óscar González‐Benito, 2006. "A review of determinant factors of environmental proactivity," Business Strategy and the Environment, Wiley Blackwell, vol. 15(2), pages 87-102, March.
    30. Jin Young Shin & Moosup Jung & Kyung-il Khoe & Myung-Su Chae, 2015. "Effects of Government Involvement in Corporate Social Responsibility: An Analysis of the Indian Companies Act, 2013," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 51(2), pages 377-390, March.
    31. Michael Polonsky & Rachid Zeffane & Patrick Medley, 1992. "Corporate environmental commitment in Australia: A sectorial comparison," Business Strategy and the Environment, Wiley Blackwell, vol. 1(2), pages 25-39, June.
    32. Lixiang Wang & Weian Li & Lujun Qi, 2020. "Stakeholder Pressures and Corporate Environmental Strategies: A Meta-Analysis," Sustainability, MDPI, vol. 12(3), pages 1-16, February.
    33. Eliza Sharma, 2019. "A review of corporate social responsibility in developed and developing nations," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(4), pages 712-720, July.
    34. John Child & Terence Tsai, 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, January.
    35. Ricky Y.K. Chan & Katherine H.Y. Ma, 2021. "How and when environmental orientation drives corporate sustainable development in a cross‐national buyer–supplier dyad," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 109-121, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Viktor Koval & I Wayan Edi Arsawan & Ni Putu Santi Suryantini & Serhii Kovbasenko & Nadiia Fisunenko & Tetiana Aloshyna, 2022. "Circular Economy and Sustainability-Oriented Innovation: Conceptual Framework and Energy Future Avenue," Energies, MDPI, vol. 16(1), pages 1-19, December.
    2. Büşra Buran & Mehmet Erçek, 2021. "Convergence or Divergence among Business Models of Public Bus Transport Authorities across the Globe: A Fuzzy Approach," Sustainability, MDPI, vol. 13(19), pages 1-21, September.
    3. Summer K. Mohamed & Sandra Haddad & Mahmoud Barakat & Bojan Rosi, 2023. "Blockchain Technology Adoption for Improved Environmental Supply Chain Performance: The Mediation Effect of Supply Chain Resilience, Customer Integration, and Green Customer Information Sharing," Sustainability, MDPI, vol. 15(10), pages 1-20, May.
    4. Radek Tahal & Tomáš Formánek, 2022. "Environmental Stances and Lifestyle Preferences in Czechia: Generational Aspects and Socio-Demographic Implications," Central European Business Review, Prague University of Economics and Business, vol. 2022(5), pages 1-21.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ricky Y. K. Chan & Katherine H. Y. Ma, 2016. "Environmental Orientation of Exporting SMEs from an Emerging Economy: Its Antecedents and Consequences," Management International Review, Springer, vol. 56(5), pages 597-632, October.
    2. Farida Saleem & Yingying Zhang-Zhang & Muhammad Imran Malik & Alawiya Allui, 2020. "Revisiting Stakeholder Theory and Environmentalism: Evidence from an Emerging Economy," Sustainability, MDPI, vol. 12(20), pages 1-20, October.
    3. Chan, Ricky Y.K., 2010. "Corporate environmentalism pursuit by foreign firms competing in China," Journal of World Business, Elsevier, vol. 45(1), pages 80-92, January.
    4. Ricky Y.K. Chan & Katherine H.Y. Ma, 2021. "How and when environmental orientation drives corporate sustainable development in a cross‐national buyer–supplier dyad," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 109-121, January.
    5. Jean-Marie Courrent & Sonia Chassé & Waleed Omri, 2018. "Do Entrepreneurial SMEs Perform Better Because They are More Responsible?," Journal of Business Ethics, Springer, vol. 153(2), pages 317-336, December.
    6. Bang-Ning Hwang & Chi-Yo Huang & Chih-Hsiung Wu, 2016. "A TOE Approach to Establish a Green Supply Chain Adoption Decision Model in the Semiconductor Industry," Sustainability, MDPI, vol. 8(2), pages 1-30, February.
    7. Janet Elaine Haddock‐Fraser & Marielle Tourelle, 2010. "Corporate motivations for environmental sustainable development: exploring the role of consumers in stakeholder engagement," Business Strategy and the Environment, Wiley Blackwell, vol. 19(8), pages 527-542, December.
    8. Liwei Feng & Wenwen Zhao & Hui Li & Yongtao Song, 2018. "The Effect of Environmental Orientation on Green Innovation: Do Political Ties Matter?," Sustainability, MDPI, vol. 10(12), pages 1-15, December.
    9. Mariadoss, Babu John & Chi, Ting & Tansuhaj, Patriya & Pomirleanu, Nadia, 2016. "Influences of Firm Orientations on Sustainable Supply Chain Management," Journal of Business Research, Elsevier, vol. 69(9), pages 3406-3414.
    10. Corinna Dögl & Michael Behnam, 2015. "Environmentally Sustainable Development through Stakeholder Engagement in Developed and Emerging Countries," Business Strategy and the Environment, Wiley Blackwell, vol. 24(6), pages 583-600, September.
    11. Ozlem Ayaz Arda & Erkan Bayraktar & Ekrem Tatoglu, 2019. "How do integrated quality and environmental management practices affect firm performance? Mediating roles of quality performance and environmental proactivity," Business Strategy and the Environment, Wiley Blackwell, vol. 28(1), pages 64-78, January.
    12. Adolfo Carballo‐Penela & Juan Luis Castromán‐Diz, 2015. "Environmental Policies for Sustainable Development: An Analysis of the Drivers of Proactive Environmental Strategies in the Service Sector," Business Strategy and the Environment, Wiley Blackwell, vol. 24(8), pages 802-818, December.
    13. Mônica Cavalcanti Sá de Abreu, 2009. "How to define an environmental policy to improve corporate sustainability in developing countries," Business Strategy and the Environment, Wiley Blackwell, vol. 18(8), pages 542-556, December.
    14. Oksana Seroka‐Stolka & Kamil Fijorek, 2020. "Enhancing corporate sustainable development: Proactive environmental strategy, stakeholder pressure and the moderating effect of firm size," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2338-2354, September.
    15. Kang Tan & Abu Bakkar Siddik & Farid Ahammad Sobhani & Muhammad Hamayun & Mohammad Masukujjaman, 2022. "Do Environmental Strategy and Awareness Improve Firms’ Environmental and Financial Performance? The Role of Competitive Advantage," Sustainability, MDPI, vol. 14(17), pages 1-24, August.
    16. Papadas, Karolos-Konstantinos & Avlonitis, George J. & Carrigan, Marylyn & Piha, Lamprini, 2019. "The interplay of strategic and internal green marketing orientation on competitive advantage," Journal of Business Research, Elsevier, vol. 104(C), pages 632-643.
    17. Farida Saleem & C. Gopinath & Amira Khattak & Saiqa Saddiqa Qureshi & Alawiya Allui & Ahmad Adeel, 2020. "Corporate Environmentalism: An Emerging Economy Perspective," Sustainability, MDPI, vol. 12(15), pages 1-17, August.
    18. María D. López‐Gamero & Patrocinio Zaragoza‐Sáez & Enrique Claver‐Cortés & José F. Molina‐Azorín, 2011. "Sustainable development and intangibles: building sustainable intellectual capital," Business Strategy and the Environment, Wiley Blackwell, vol. 20(1), pages 18-37, January.
    19. Javier González‐Benito & Óscar González‐Benito, 2010. "A study of determinant factors of stakeholder environmental pressure perceived by industrial companies," Business Strategy and the Environment, Wiley Blackwell, vol. 19(3), pages 164-181, March.
    20. Elena Fraj‐Andrés & Eva Martínez‐Salinas & Jorge Matute‐Vallejo, 2009. "Factors affecting corporate environmental strategy in Spanish industrial firms," Business Strategy and the Environment, Wiley Blackwell, vol. 18(8), pages 500-514, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:15:p:8361-:d:602209. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.