Examining antecedents, consequences, and contingencies of proactive environmental strategy

Yiming Zhuang*, Qingyun Zhu, Joseph Sarkis

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Environmental issues are globally important to organizations in both developed and emerging economies. With this importance increasing organizations have committed to going beyond compliance to adopt more proactive environmental strategies. Drawing from resource-based and resource dependence theories, this study investigates whether firm internationalization and environmental dynamism influence the role of social capital to advance proactive environmental strategy inclusion. Using survey data from 122 Chinese firms we find that a firm's social capital positively relates to proactive environmental strategy inclusion. Parlaying internationalization and environmental dynamism concerns results in a three-way interaction effect between social capital and proactive environmental strategic inclusion. The results strongly suggest that firms facing more dynamic environments can benefit from internationalization to further strengthen the relationship between social capital and proactive environmental strategy inclusion, this moderation is not true for internationalization alone, which is a surprising finding. The outcome findings confirm the preponderance of literature that show proactive environmental strategy inclusion leads to positive firm growth. The results further support managerial and organizational rationale for building organizational social capital capabilities. The social capital provides internal and external relationship resources resulting in more proactive environmental initiatives and ultimately in firm growth.
Original languageEnglish
Peer-reviewed scientific journalSustainable Production and Consumption
Volume28
Pages (from-to)1475-1490
Number of pages16
ISSN2352-5509
DOIs
Publication statusPublished - 25.08.2021
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management
  • Proactive environmental strategy
  • Internationalization
  • Environmental dynamism
  • Resource-based view
  • resource dependence theory

Sustainable Development Goals

  • GOAL 09: Industry, Innovation and Infrastructure
  • GOAL 12: Responsible Consumption and Production

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