Sustaining Competitive Advantage Through Corporate Environmental Performance

Cited 22 time in webofscience Cited 0 time in scopus
  • Hit : 206
  • Download : 0
This research investigates the relationship between a firm's environmental efforts and the sustainability of its competitive advantage by analyzing the effects of change in firm environmental performance on the persistence of profitability growth. We find that environmental resources allow a firm with superior financial performance to sustain its competitive advantage, and also complement the efforts of a poorly performing firm to hasten recovery from inferior financial performance. Our findings further indicate that firms attain such positive effects through enhanced profit margins resulting from improved environmental performance. Additionally, we observe that a corporate strategy of improving environmental performance demonstrates management's responsibility to maximize the shareholder wealth of a well-performing firm. The results provide valuable insights to align environmental activities towards developing unique resources for sustaining the competitive advantage. The study provides an empirical support for creating economic value by benefiting the environment. Copyright (c) 2016 John Wiley Sons, Ltd and ERP Environment
Publisher
WILEY PERIODICALS
Issue Date
2017-03
Language
English
Article Type
Article
Keywords

RESOURCE-BASED VIEW; FINANCIAL PERFORMANCE; SOCIAL-RESPONSIBILITY; ECONOMIC-PERFORMANCE; INTANGIBLE RESOURCES; LONG-RUN; PERSISTENCE; FIRM; PERSPECTIVE; MANAGEMENT

Citation

BUSINESS STRATEGY AND THE ENVIRONMENT, v.26, no.3, pp.345 - 357

ISSN
0964-4733
DOI
10.1002/bse.1921
URI
http://hdl.handle.net/10203/223527
Appears in Collection
RIMS Journal Papers
Files in This Item
There are no files associated with this item.
This item is cited by other documents in WoS
⊙ Detail Information in WoSⓡ Click to see webofscience_button
⊙ Cited 22 items in WoS Click to see citing articles in records_button

qr_code

  • mendeley

    citeulike


rss_1.0 rss_2.0 atom_1.0