Adopting proactive environmental strategy

The influence of stakeholders and firm size

Nicole Darnall, Irene Henriques, Perry Sadorsky

Research output: Contribution to journalArticle

278 Citations (Scopus)

Abstract

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.

Original languageEnglish (US)
Pages (from-to)1072-1094
Number of pages23
JournalJournal of Management Studies
Volume47
Issue number6
DOIs
StatePublished - Sep 2010
Externally publishedYes

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Stakeholder pressures
Environmental strategy
Stakeholders
Firm size
Small firms
Environmental practices
Empirical results
Large firms
Value chain
Natural environment
Stakeholder theory

ASJC Scopus subject areas

  • Business and International Management
  • Management of Technology and Innovation
  • Strategy and Management

Cite this

Adopting proactive environmental strategy : The influence of stakeholders and firm size. / Darnall, Nicole; Henriques, Irene; Sadorsky, Perry.

In: Journal of Management Studies, Vol. 47, No. 6, 09.2010, p. 1072-1094.

Research output: Contribution to journalArticle

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