Institutional Forces and Environmental Management Strategy: Moderating Effects of Environmental Orientation and Innovation Capability. (29th June 2018)

• Record Type: Journal Article
• Authors: Kang, Yuanfei; He, Xinming
• Is Part Of: Management and organization review. Volume 14:Number 3(2018)
• Page Start: 577
• Page End: 605
• Publication Date: 2018-06-29
• Subjects: China, -- environmental management strategy, -- environmental orientation, -- innovation capability, -- institutional theory, -- resource-based view; 中国, -- 环境管理战略, -- 环境导向, -- 创新能力, -- 制度理论, -- 资源基础观; चीन, -- पर्यावरण प्रबंधन रणनीति, -- पर्यावरणीय अनुकूलन, -- नवोत्पादन क्षमता, -- संस्थागत सिद्धांत, -- संसाधनपरक परिप्रेक्ष्य; China, -- estratégia de gestão ambiental, -- orientação ambiental, -- capacidade de inovação, -- teoria institucional, -- visão baseada em recursos; Китай, -- стратегия экологического управления, -- экологическая ориентация, -- инновационная способность, -- институциональная теория, -- ресурсный подход; China, -- estrategia de gestión ambiental, -- orientación ambiental, -- capacidad de innovación, -- teoría institucional, -- perspectiva basada en recursos; Management -- China -- Periodicals; Industrial management -- China -- Periodicals; International business enterprises -- Management -- Periodicals; Management -- Periodicals; Organizational sociology -- Periodicals; 658.00951
• DOI: 10.1017/mor.2017.56
• Languages: English
• ISSNs: 1740-8776

Abstract

ABSTRACT: We examine the mechanisms through which firm capabilities moderate the impact of institutional forces upon firms' adoption of environmental management strategy (EMS). Viewing the limitations of the institutional perspective in explaining the heterogeneity in firms' EMS, we suggest that an important source of variation is the idiosyncratic capabilities of the firm in acquiring and allocating resources. Based on the strategic response theme of institutional theory and the resource-based view, we argue that the influence of institutional forces on EMS is contingent on the presence of environmental orientation and innovation capability. Using data collected from China, we test these notions. Our empirical results suggest that both environmental orientation and innovation capability positively moderate the effect of institutional forces on firm's EMS. By demonstrating how institutional forces and firm capabilities interact with each other, we enhance our understanding of how firms succeed in developing EMS.