The interactive effect of internal and external factors on a proactive environmental strategy and its influence on a firm's performance

Bulent Menguc, Seigyoung Auh, Lucie Ozanne

    Research output: Contribution to journalArticlepeer-review

    208 Scopus citations

    Abstract

    While the literature on the effective management of business and natural environment interfaces is rich and growing, there are still two questions regarding which the literature has yet to reach a definitive conclusion: (1) what is the interactive effect between internal and external drivers on a proactive environmental strategy (PES)? and (2) does a PES influence firm's performance? Drawing on the resource-based view for the internal drivers' perspective and institutional and legitimacy theories for the external drivers' perspective, this study suggests that the effect of entrepreneurial orientation on a PES is moderated by the intensity of government regulations and customers' sensitivity to environmental issues. The authors also examine the relationship between the PES and a firm's performance in terms of sales and profit growth. Implications are discussed regarding the role of a PES in achieving a competitive advantage in the marketplace.

    Original languageEnglish (US)
    Pages (from-to)279-298
    Number of pages20
    JournalJournal of Business Ethics
    Volume94
    Issue number2
    DOIs
    StatePublished - Jan 1 2010

    Keywords

    • Entre-preneurial orientation
    • Institutional pressure
    • Legitimacy theory
    • Natural environment
    • Proactive environmental strategy
    • Resource-based view
    • Stakeholder theory

    ASJC Scopus subject areas

    • Business and International Management
    • Business, Management and Accounting(all)
    • Arts and Humanities (miscellaneous)
    • Economics and Econometrics
    • Law

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