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Institutional Forces and Environment Management Strategy: Moderating Effects of Environmental Orientation and Innovation Capability

Kang, Y.; He, X.

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Authors

Y. Kang



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.

Citation

Kang, Y., & He, X. (2018). Institutional Forces and Environment Management Strategy: Moderating Effects of Environmental Orientation and Innovation Capability. Management and Organization Review, 14(3), 577-605. https://doi.org/10.1017/mor.2017.56

Journal Article Type Article
Acceptance Date Nov 1, 2017
Online Publication Date Jun 29, 2018
Publication Date Sep 1, 2018
Deposit Date Nov 2, 2017
Publicly Available Date Mar 28, 2024
Journal Management and Organization Review
Print ISSN 1740-8776
Electronic ISSN 1740-8784
Publisher Cambridge University Press
Peer Reviewed Peer Reviewed
Volume 14
Issue 3
Pages 577-605
DOI https://doi.org/10.1017/mor.2017.56
Public URL https://durham-repository.worktribe.com/output/1341091

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Copyright Statement
This article has been published in a revised form in Management and Organization Review https://doi.org/10.1017/mor.2017.56. This version is free to view and download for private research and study only. Not for re-distribution, re-sale or use in derivative works. © The International Association for Chinese Management Research 2018.




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