Firm As A Knowledge Enterprise And Its Environmental Performance

Research on inter-firm performance differentials often operationalizes performance as single dimensional. In reality, firms tend to seek strategic fit on several contingent dimensions, of which environmental performance is one of the critical components. However, superior environmental performance per se does not assure survival to any firm; nonetheless, sub-par environmental performance may threaten the survival of an otherwise well performing firm. We propose that the ability and motivation of firms to respond to the contingent performance criteria are a function of their knowledge enterprise. We further propose that as a knowledge enterprise, firms may pursue two different types of strategies to contingent environmental performance criteria: conforming and entrepreneurial. We examine the consequences of these two strategies, using survey data from a sample of small and medium Chinese enterprises. Our findings illustrate the mechanisms that enable knowledge enterprises to achieve superior contingent dimension of environmental performance. Limitations of the research are examined, and areas for extension of this research are highlighted.