Environmental engagement, organizational capability and firm performance

Abstract

Purpose

The aim of this paper is to understand the connection between the motivations that drive firms to adopt green commitments and the impact of these engagements on firm performance.

Design/methodology/approach

Theoretical underpinnings for the hypotheses are drawn from the existent literature on corporate environmental responsibility and the constructivist framework. These hypotheses are then tested through a SEM with data from a mail survey with 195 Spanish manufacturing firms that have adopted the international environmental management system ISO 14001.

Findings

The results suggest that in the process of implementing green commitments, not only instrumental and ecological motivations play a key role, but also the internal organizational activities, in addition to the outcomes of the implementation itself.

Research limitations/implications

This research study uses perceptual measures of a single informant from each Spanish firm. Research studies that add objective data and extrapolate the analysis to firms in other countries would be worthwhile to support this model.

Practical implications

According to this paper, firms can enhance the outcomes of their green engagements through involving diverse functional units, and by continuously assessing these results and scanning the drivers of change.

Originality/value

This paper suggests the greening of the manufacturing process as a multidimensional procedure and helps shed light on how to successfully manage it.

Citation

López‐Rodríguez, S. (2009), "Environmental engagement, organizational capability and firm performance", Corporate Governance, Vol. 9 No. 4, pp. 400-408. https://doi.org/10.1108/14720700910984954