Adopting proactive environmental practices: the influence of stakeholders and firm size (original) (raw)
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Adopting proactive environmental strategy: the influence of stakeholders and firm size
Journal of Management Studies, 2010
While smaller firms are less likely to undertake as many environmental practices as larger firms, extant literature suggests that smaller firms may be more responsive to stakeholder pressures. This paper contributes to the development of stakeholder theory by deriving a size moderated stakeholder model and applying it to a firm’s adoption of proactive environmental practices. The empirical results show that smaller firms are more responsive to value-chain, internal and regulatory stakeholder pressures. These findings suggest that researchers evaluating organizations and the natural environment should be cautious about associating stakeholder pressures directly with firms’ environmental strategies. Rather, the relationship between stakeholder pressures and environmental strategy tends to vary with size.
Journal of Small Business Strategy
SMEs in the food manufacturing sector represent a considerable proportion of mainstream businesses in Malaysia. The changes in the lifestyles of Malaysians have led to increased demand for convenience and processed foods, which has led to a growing number of food manufacturing establishments in Malaysia. Nevertheless, the expansion in the food manufacturing sector is followed by a rise in environmental issues. Therefore, to mitigate the impact of food manufacturing activities on the environment, one of the best possible solutions is to implement environmental management practices (EMPs). SMEs may encounter varying levels of pressure from customers, regulatory bodies, and the social community regarding environmental behavior and compliance. This study used the Stakeholder theory to develop the research model. The first objective of this study is to determine the effect of SMEs’ external stakeholders, including customer pressure, regulatory pressure, and social community pressure, on ...
Stakeholder influences on the design of firms' environmental practices
Journal of Cleaner Production , 2017
While prior literature has emphasized that stakeholders can influence a firm's decision to adopt environmental practices that lead to competitive advantage, most scholarship has assumed that stakeholders influence the design of firms' environmental practices similarly. We challenge this notion and suggest that stakeholders affect not only the decision to adopt environmental practices, but also managerial decisions about the design of these practices. We consider the case of firms' strategic decisions about the design of their environmental practices, and in particular their degree of comprehensiveness and visibility. We then develop a classification of four design strategies: movers and shakers, backroom operators, wannabes, and passivists. Using multinomial regression techniques for a sample of more than 1700 firms worldwide, our research shows that while stakeholders exert pressures on firms, managers' perceptions of these pressures vary, and these variations appear to influence the design of their environmental practices. These findings offer important evidence that the scope of stakeholders' influence appears more far reaching (and nuanced) than previously considered. Managers who respond to these influences may therefore be in a better position to satisfy stakeholder expectations, thus enhancing their organization's overall credibility.
A Stakeholder-Theory Approach to Environmental Disclousures by Small and Medium Enterprises (SMES)
The aim of this article is to analyse the reasons that drive Spanish Small and Medium Enterprises (SMEs) to disclose environmental information. The contribution of the present research to the literature on corporate social reporting is threefold: (i) it widens the scope of Stakeholder Theory; (ii) it analyses the environmental reporting disclosures of SMEs; and, for the first time in this field, (iii) it applies Structural Equation Modelling. The results show that stakeholder salience, manager strategic posture and resource availability, though insufficient in themselves, are necessary to explain the environmental performance of SMEs. Moreover, an analysis of the disclosures they make in their annual accounts brings to light the impossibility of gaining insight into the real environmental behaviour of these firms, which raises reasonable doubts over the effectiveness of the relevant environmental reporting regulation in Spain.
Proactive environmental strategies: a stakeholder management perspective
Strategic Management Journal, 2003
This paper includes an empirical analysis of the linkages between environmental strategy and stakeholder management. First, it is shown that several simultaneous improvements in various resource domains are required for firms to shift to an empirically significant, higher level of proactiveness. Second, more proactive environmental strategies are associated with a deeper and broader coverage of stakeholders. Third, environmental leadership is not associated with a rising importance of environmental regulations, thereby suggesting a role for voluntary cooperation between firms and government. Finally, the linkages between environmental strategies and stakeholder management, based on a sample of 197 firms operating in Belgium, appear more limited than expected. Country-specific characteristics may to a large extent account for these results.
British Journal of Management, 2008
Drawing on the resource-based view of the firm, we examine how complexity, uncertainty and munificence in the general business environment moderate the association between a firm's stakeholder integration capability and its environmental strategy. Our data were drawn from 134 ski resorts in 12 countries in western Europe and North America. Our study finds that (1) an organizational capability of stakeholder integration is associated with a service firm's adoption of a proactive environmental strategy; (2) an uncertain business environment has a direct positive influence and a complex business environment has a direct negative influence on a firm's environmental strategy; and (3) complexity has a negative moderating influence on the relationship between a firm's stakeholder integration capability and its environmental strategy.
Management Decision, 2014
Given the uprising interest in the environmental responsibility issues among small businesses, the purpose of this paper is to design to probe into the relationship between stakeholders’ influence and environmental responsibility of Micro, Small and Medium-Sized Enterprises (MSMEs), and its consequent outcomes in an emerging economy. A sample of 110 MSME owners participated in this study. Data were collected by means of questionnaire designed to measure the 12 constructs of focus. In order to test the hypotheses and examine the relationships proposed in the research framework, structural equation modelling was performed using SmartPLS. This study revealed that among the primary stakeholders, only employees and customers significantly influenced environmental responsibility practices of MSMEs. Besides, it was found that environmental responsibility results in financial improvements and better relations with employees and customers. This study is limited to MSMEs in Malaysia. Despite the relatively low response rate, which is common in MSME research, the geographic and sector distribution of samples provides a basis for generalizability of the results. Since many MSME owners/managers are sceptical about the benefits of environmental practices, the findings of this study provided empirical support from an emerging economy about the positive outcomes of environmental practices. By examining the key determinants that foster environmental practices in MSMEs, the current study provides important insights for policy makers to encourage MSMEs to initiate such responsible practices, which can lead to environmental preservation. Other than enriching a systems-based view of firms’ environmental behaviour, this study empirically tests a research framework on role of stakeholders in determining environmental responsibility of small firms and their outcomes on firms’ performance.