How nation-level background governance conditions shape the economic payoffs of corporate environmental performance

2019 ◽  
Vol 57 (10) ◽  
pp. 2714-2739 ◽  
Author(s):  
Sukhbir Sandhu ◽  
Marc Orlitzky ◽  
Céline Louche

Purpose Companies develop and implement environmental initiatives in particular national governance and institutional contexts. The purpose of this paper is to study how the background governance conditions of legal systems, economic policies and national culture enable or impede the relationship between corporate environmental performance (CEP) and lagged corporate financial performance (CFP). Design/methodology/approach This is an empirical study of 427 MNCs headquartered in 22 different countries. The authors merged data from the SiRi database (generally known as SustainAnalytics now), which contains ratings of stakeholder relations for 427 large corporations with publicly available data from Datastream. Findings Drawing on the new institutionalism in economics and sociology, the authors show that common-law systems and high economic freedom in a company’s home country tend to strengthen the CEP-CFP link. In addition, the home-country cultural variables of uncertainty avoidance, long-term orientation, and (to a lesser extent) masculinity may impede the deployment of CEP for maximum financial gain at the organizational level. The macrolevel analysis starts to move the field toward an understanding of the particular national governance configurations that provide the most supportive conditions for any CEP-CFP links. Originality/value One of the central questions in the field of organizations and the natural environment is about the background conditions that may incentivize and reward firms to be more environmentally responsive. The paper addresses this issue through a nation-level investigation of the background governance conditions that may help or hinder the relationship between CEP and CFP.

Author(s):  
Milad Abdelnabi Salem

Purpose The purpose of this paper is to investigate the influence of both environmental practices and corporate environmental performance on competitiveness. It determines the mediating effects of corporate environmental performance on the relationship between environmental practices and competitiveness. Design/methodology/approach This study adopts a cross-sectional survey method. The data were collected from 155 industrial companies from Libya and analysed using structural equation modelling. Findings The results indicate that environmental performance partially mediates the relationship between environmental practices and competitiveness. The mediating effects occur between competitiveness and green conventional practices, organisational practices and stakeholders’ integration. Research limitations/implications The study used a self-reported questionnaire completed by managers in Libyan industrial companies. As such, the survey data might be subject to social desirability. Additionally, the results of the study may be generalised only to a similar environment and stage of development. Practical implications The results can help companies better understand how to improve their current resources base by building incremental capabilities, which, in turn, protect the surrounding environment and enhance their competitiveness. Originality/value This study is the first to have considered the issue of incremental capabilities in the environmental domain, which can contribute significantly to better understanding the role of incremental capabilities in improving the competitiveness of companies. Additionally, it provides empirical evidence on the state-of-art of environmental practices and their consequences in less-developed countries which are characterised by scarcity of research.


2020 ◽  
Vol 15 (6) ◽  
pp. 1061-1082 ◽  
Author(s):  
Merve Acar ◽  
Hüseyin Temiz

PurposeThe purpose of this study is to investigate the association between environmental performance of firms and the level of voluntary environmental disclosure in emerging markets.Design/methodology/approachWe used tobit regression OLS and t-test methods to reveal the association between environmental performance and the level of voluntary environmental disclosure.FindingsWe find a significant positive association between the level of discretionary environmental disclosures and corporate environmental performance. The result is in line with the arguments of economics disclosure theory that argues environmentally good performers disclose more.Practical implicationsMany of the environmentally good firms in Turkey are also listed in the “BIST Sustainability Index,” and this situation can be the result of the relative power of external regulations. Accordingly, it can be suggested to increase the community and governmental pressures for environmental reporting but also gives importance to increase intrinsic motivations for companies to engage in disclosure practices.Originality/valueThis study shed light on relation between environmental performance and environmental disclosure in an emerging market context. Also, it is revisited that the relation between environmental performance and the level of environmental disclosure by testing two different predictions on the level of environmental disclosures.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sabeen Hussain Bhatti ◽  
Farida Saleem ◽  
Ghulam Murtaza ◽  
Tazeem Ul Haq

PurposeThis paper aims to explore the relationship between green human resource management (GHRM) practices and the environmental performance (EP) of firms belonging to industries that may lean toward environmental pollution (e.g. oil and gas). The authors propose a holistic (serial mediation) model based on the ability-motivation-opportunity (AMO) theory and the social exchange theory (SET) and integrate organizational, i.e. perceived organizational support (POS), and individual, i.e. innovative environmental behavior (IEB), factors as explanatory mechanisms. The authors then test the model in a developing country context.Design/methodology/approachData were collected from white collar workers in the oil and gas industry in Pakistan. A structural equation modeling (SEM) technique and the PROCESS model 6 were used to analyze the hypothesized serial mediation model.FindingsThe authors found support for the fully meditating serial mediation model. Although the direct effects of GHRM and EP were insignificant, the total effects and indirect effects through POS and IEB were significant. Similarly, the research also found support for organizational and individual factors as explanatory mechanisms in the relationship between GHRM and EP.Originality/valueThis research adds to the existing literature on GHRM and the corporate EP link through proposing and testing a model of the mediating effects of POS and IEB. Furthermore, it provides empirical evidence of this model in the oil and gas sector using an Asian developing country as the context of study.


2015 ◽  
Vol 53 (5) ◽  
pp. 932-956 ◽  
Author(s):  
Han Lin ◽  
Saixing Zeng ◽  
Hanyang Ma ◽  
Hongquan Chen

Purpose – The purpose of this paper is to develop a better understanding of the mechanisms by which symbolic commitment to self-regulation influences corporate environmental performance through the adoption of substantive actions. Design/methodology/approach – Using a sample of Chinese listed private firms in manufacturing sectors, this paper empirically investigates whether and how corporate symbolic commitment to environmental self-regulation really improves the consequences of corporate activities with respect to environmental issues under the current Chinese context. A moderated mediation analysis is employed to test the hypotheses and examine the relationships proposed in the research framework. Findings – The authors argue that making a commitment to environmental self-regulation could motivate firms to implement effective means of being green. The intriguing and robust results show that firms with higher ranking environmental commitment are more likely to use political connections to obtain resources (green subsidies), and then improve environmental performance. Practical implications – The results of this study provide a snapshot of the mechanism between symbolic promises and real outcomes. Originality/value – The authors theorize about and test both direct and indirect effects of commitment to self-regulation on real outcomes which provide empirical evidence for the incipient but growing understanding of self-regulation.


2015 ◽  
Vol 4 (1) ◽  
pp. 27-36 ◽  
Author(s):  
Alma Maria Rodríguez-Sánchez ◽  
Maria Vera Perea

Purpose – The concept of the “resilient organisation” has gained popularity as a concept that might aid organizations survive and thrive in difficult or volatile economic times. Knowing which factors may contribute to building organizational and team resilience is one of the questions that still remain unsolved. The purpose of this paper is to examine and review different conceptualisations of this emergent topic in the management literature, taking into account the common features of resilience capacity in organizations and teams. Design/methodology/approach – To examine the literature on resilience, the authors will focus on team resilience. The authors depart from the psychological-behavioral approach to study resilience and instead take a multilevel perspective (i.e. taking into account organizational and team factors). Findings – From a psychological-behavioral point of view the authors posit that there is a lack of research on which factors build team resilience. This review clarifies and relates independent and isolated studies on resilience taking into account the resources both at team and organizational level (i.e. collective efficacy, transformational leadership, teamwork, organizational practices) that build team resilience capacity. Research limitations/implications – Taking into account this review, future studies should analyze empirically the relationship between these factors that build up team resilience. Practical implications – With this review the authors try to provide guidance as to which aspects of the organization both research and practitioners should focus on. Originality/value – In sum, this literature review examines organizational and team factors that may build team resilience from a psychological-behavioral perspective, taking into account the multilevel view.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Misbah Hayat Bhatti ◽  
Umair Akram ◽  
Muhammad Hasnat Bhatti ◽  
Tabassum Riaz ◽  
Nausheen Syed

Purpose The effect of empowering leadership on knowledge sharing is well defined, but factors that stimulate employees for knowledge sharing are still limited. Therefore, this study aims to address to what extent empowering leadership is desirable to create a trustful and fair environment that is conducive for an employee’s knowledge sharing. Design/methodology/approach Through integration of social exchange, equity and uncertainty management theories develop a moderating mediating model that links empowering leadership to knowledge sharing. Three-wave data collection from the sample of 375 managers–subordinates’ dyads was done in Pakistan textile industries. Findings Hierarchal regression analysis and bootstrapping method were applied to test the hypotheses. The results indicate that affective trust partially mediates the relationship between empowering leadership and knowledge sharing. More especially, the findings demonstrate that the relationship between empowering leadership and knowledge sharing becomes strong with high level of distributive and procedural justices. Practical implications This research study uses empowering leadership as a proposed motivational pathway for stimulating employee’s knowledge sharing through development of affective trust and buffering effect of distributive and procedural justices. Originality/value Most of previous research in knowledge sharing just cynosure organizational-level elements like leadership and organizational justices but deteriorate individual factors like trust. Therefore, this study will combine both organizational- and individual-level factors for urging employees for knowledge sharing.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Suaad Jassem ◽  
Zarina Zakaria ◽  
Anna Che Azmi

PurposeThis study aims to assess the current state of research on the use of sustainability balanced scorecards (SBSCs), as they relate to environmental performance-related outcomes. It also seeks to present a conceptual framework proposing relationships between SBSC and environmental performance.Design/methodology/approachThis paper conducts a systematic literature review of articles published in double-blind peer-reviewed journals that are listed on Scopus and/or Web of Science databases.FindingsThe first part of the paper reveals that two architectures of SBSC appear to be dominant in the literature (SBSC-4 where sustainability parameters are integrated with the four perspectives of the balanced scorecard and SBSC-5 where sustainability is shown as an additional standalone fifth perspective). The next part of the paper presents a conceptual model relating SBSC as decision-making tools to environmental performance outcomes. The paper also indicates that SBSC knowledge mediates the above relationships. Furthermore, based on the theory of expert competence, the presence of experts possibly moderates the relationship between SBSC architecture and environmental performance outcomes.Research limitations/implicationsThe literature indicates a lack of consensus on establishing a clear linkage on the relationship between SBSC architecture and environmental performance outcomes. As a result, a holistic conceptual framework where SBSC knowledge acts as a mediator and presence of experts as a moderator may be able to provide a more consistent relationship between SBSC architecture and environmental performance outcomes.Practical implicationsThe conceptual framework proposed provides factors to be considered by decision makers, for effective outcomes when aiming to achieve environmental stewardship objectives.Social implicationsEnvironmental performance by business organisations have come under close scrutiny of stakeholders. As a result, the holistic model proposed in the current study may pave the path for decision-makers to achieve superior environmental outcomes, leading to greater satisfaction of stakeholders such as the communities that are impacted by the business operations of an organisation.Originality/valueThis is the first paper to propose a model for future research regarding the link between SBSC and environmental performance outcomes – with expert managers acting as moderators and SBSC knowledge acting as a mediator.


2019 ◽  
Vol 11 (5) ◽  
pp. 1317 ◽  
Author(s):  
Liming Zhang ◽  
Fei Ye ◽  
Li Yang ◽  
Guichuan Zhou

Employing a sample consisting of Chinese A-share listed companies, this study carries out an empirical research to investigate the influence path of political connections on enterprise environmental performance. The results show a strong positive association between political connections and corporate environmental performance, and green technology innovation plays the mediating role between them. In addition, public participation negatively moderates the relationship between political connections and corporate environmental performance. When the level of public participation is higher, the relationship between political connections and corporate environmental performance becomes weaker.


2020 ◽  
Vol 33 (2) ◽  
pp. 415-431
Author(s):  
Patricia S. Sánchez-Medina

PurposeBusinesses in Mexico, particularly small and mid-sized companies, are faced with numerous challenges: a lack of competition, difficulty in positioning and maintaining oneself in the market, irrational use of natural resources, and poverty in the environment in which they develop. In spite of these problems, many are able to succeed; however, there is limited knowledge about how these businesses could implement organizational changes that would positively impact their results.Design/methodology/approachUsing dynamic capabilities theory and survey data obtained from pottery businesses in several artisan communities in Mexico through the application of face-to-face interviews, this paper analyzes the relationship between organizational capability for change (OCC) and economic and environmental performance.FindingsThis research proves that OCC positively and significantly impacts economic and environmental performance. Results contribute to the existing literature on OCC in the context of poverty.Originality/valueThis study offers empirical research that illustrates the relationship between OCC and the environmental and economic performance of pottery businesses. Additionally it contributes to a field of knowledge in progress; that is, OCC in contexts of subsistence where poverty is a constant issue. Artisans living in this context can also develop business capabilities that contribute to the permanence of their business in the market.


2019 ◽  
Vol 10 (1) ◽  
pp. 42-66 ◽  
Author(s):  
Yankun Zhou ◽  
Hongtao Shen

PurposeThis study aims to deem the new policy – talk for environmental protection – promoted in the second half of 2014 to be the exogenous event and adopts PSM and DID to verify whether and how the central government’s mechanism of supervision of environmental enforcement improves firm environmental performance and reveals the micro effect and working mechanism of the supervision of environmental enforcement.Design/methodology/approachThe researchers first select reasonable control groups for target districts by means of PSM, then apply DID to compare corporations in the treatment group with those in the control group for the change of environmental performance before and after the talk for environmental protection, so as to evaluate the micro-level effect of such talks on corporate environmental performance; after that, the research examines the working mechanism of such talks on corporate environmental performance; then, it goes a step further to find out the environmental impact of such talks on corporations of different natures of property right.FindingsIt is found from the research that the talk for environmental protection will effectively improve the environmental performance of corporations in the target districts, and the improvement of environmental performance in state-owned corporations in the target districts will be more evident. However, such improvements, to a certain extent, are achieved by reducing the output value, and corporations do not increase environmental investments from a long-term perspective.Research limitations/implicationsFirst, the targets of the talk for environmental protection are mainly principals of municipal governments, but the research expands the scope to the whole province due to the small sample at the municipal level. Despite evidences showing that such a pressure of supervision impacts the whole province, the results obtained based on the data at the municipal level will be accurate. Second, the research selects a relatively short research period. Third, due to the limited data on corporate environmental performance in China, the research selects only listed companies from key monitored and controlled firms by state.Practical implicationsFirst, for the central government, environmental policy making is not the end of its job; it shall also supervise local governments’ work at environmental governance and properly handle its relationship with local governments. Second, for the local governments, in the course of implementing environmental policies, they should not only strengthen law enforcement but keep the continuity of law enforcement to avoid moving law enforcement. Third, in the long run, corporations must start from the source of production to enhance environmental governance and make cleaner production, so as to keep boosting corporate competitiveness and their ability of fighting risks.Originality/valueFirst, the research innovatively provides empirical evidence about the effect of China’s supervision of environmental enforcement. Previous studies on this topic are mostly theoretical discussions only, while this research makes the talk for environmental protection the exogenous event about the supervision of law enforcement and achieves breakthroughs in empirical studies of administrative enforcement supervision. Second, the research pushes the studies on the implementation effect of environmental policies from a medium level to a micro level. Third, the research achieves some breakthroughs in the data for measuring corporate environmental performance.


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