A Resource-Based Perspective On Corporate Environmental Performance And Profitability
TL;DR: The authors found that environmental performance and economic performance are positively linked and that industry growth moderate the relationship, with the returns to environmental performance higher in high-growth industries, concluding that it pays to be green.
Abstract: Drawing on the resource-based view of the firm, we posited that environmental performance and economic performance are positively linked and that industry growth moderates the relationship, with the returns to environmental performance higher in high-growth industries. We tested these hypotheses with an analysis of 243 Finns over two years, using independently developed environmental ratings. Results indicate that “it pays to be green” and that this relationship strengthens with industry growth. We conclude by highlighting the study's academic and managerial implications, making special reference to the social issues in management literature.
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TL;DR: This article conducted a meta-analysis of 52 studies and found that corporate virtue in the form of social responsibility and, to a lesser extent, environmental responsibility is likely to pay off, although the operationalizations of CSP and CFP also moderate the positive association.
Abstract: Most theorizing on the relationship between corporate social/environmental performance (CSP) and corporate financial performance (CFP) assumes that the current evidence is too fractured or too variable to draw any generalizable conclusions. With this integrative, quantitative study, we intend to show that the mainstream claim that we have little generalizable knowledge about CSP and CFP is built on shaky grounds. Providing a methodologically more rigorous review than previous efforts, we conduct a meta-analysis of 52 studies (which represent the population of prior quantitative inquiry) yielding a total sample size of 33,878 observations. The meta-analytic findings suggest that corporate virtue in the form of social responsibility and, to a lesser extent, environmental responsibility is likely to pay off, although the operationalizations of CSP and CFP also moderate the positive association. For example, CSP appears to be more highly correlated with accounting-based measures of CFP than with market-based ...
6,493 citations
TL;DR: In this article, the authors outline a supply and demand model of corporate social responsibility (CSR) and conclude that there is an "ideal" level of CSR, which managers can determine via cost-benefit analysis.
Abstract: We outline a supply and demand model of corporate social responsibility (CSR). Based on this framework, we hypothesize that a firm's level of CSR will depend on its size, level of diversification, research and development, advertising, government sales, consumer income, labor market conditions, and stage in the industry life cycle. From these hypotheses, we conclude that there is an “ideal” level of CSR, which managers can determine via cost-benefit analysis, and that there is a neutral relationship between CSR and financial performance.
6,305 citations
TL;DR: The authors argue that companies are increasingly asked to provide innovative solutions to deep-seated problems of human misery, even as economic theory instructs managers to focus on maximizing their shareholders' wealt.
Abstract: Companies are increasingly asked to provide innovative solutions to deep-seated problems of human misery, even as economic theory instructs managers to focus on maximizing their shareholders' wealt
4,666 citations
TL;DR: The concept of IT as an organizational capability is developed and empirically examining the association between IT capability and firm performance indicates that firms with high IT capability tend to outperform a control sample of firms on a variety of profit and cost-based performance measures.
Abstract: The resource-based view of the firm attributes superior financial performance to organizational resources and capabilities. This paper develops the concept of IT as an organizational capability and empirically examines the association between IT capability and firm performance. Firm specific IT resources are classified as IT infrastructure, human IT resources, and IT-enabled intangibles. A matched-sample comparison group methodology and publicly available ratings are used to assess IT capability and firm performance. Results indicate that firms with high IT capability tend to outperform a control sample of firms on a variety of profit and cost-based performance measures.
4,471 citations
TL;DR: This article conducted a qualitative study of the motivations and contextual factors that induce corporate ecological responsiveness, which revealed three motivations: competitiveness, legitimation, and ecological responsibility, which were influenced by three contextual conditions: field cohesion, issue salience and individual concern.
Abstract: The authors conducted a qualitative study of the motivations and contextual factors that induce corporate ecological responsiveness. Analytic induction applied to data collected from 53 firms in the United Kingdom and Japan revealed three motivations: competitiveness, legitimation, and ecological responsibility. These motivations were influenced by three contextual conditions: field cohesion, issue salience, and individual concern. In this article, the authors also identify the conditions that likely lead to high corporate ecological responsiveness.
3,231 citations
References
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TL;DR: In this article, the authors examined the link between firm resources and sustained competitive advantage and analyzed the potential of several firm resources for generating sustained competitive advantages, including value, rareness, imitability, and substitutability.
46,648 citations
"A Resource-Based Perspective On Cor..." refers background in this paper
...Thus, for a firm's resource to become valuable, it must allow the firm to "exploit opportunities or neutralize threats" in the firm's environment (Barney, 1991: 106)....
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...End-of-pipe compliance policies affect only physical asset resources, which consist of the "physical technology used in a firm, a firm's plant and equipment, its geographic location, and its access to raw materials" (Barney, 1991)....
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...A RESOURCE-BASED PERSPECTIVE ON...
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01 Jan 1991TL;DR: In this article, the effects of predictor scaling on the coefficients of regression equations are investigated. But, they focus mainly on the effect of predictors scaling on coefficients of regressions.
Abstract: Introduction Interactions between Continuous Predictors in Multiple Regression The Effects of Predictor Scaling on Coefficients of Regression Equations Testing and Probing Three-Way Interactions Structuring Regression Equations to Reflect Higher Order Relationships Model and Effect Testing with Higher Order Terms Interactions between Categorical and Continuous Variables Reliability and Statistical Power Conclusion Some Contrasts Between ANOVA and MR in Practice
27,897 citations
TL;DR: In this article, a parameter covariance matrix estimator which is consistent even when the disturbances of a linear regression model are heteroskedastic is presented, which does not depend on a formal model of the structure of the heteroSkewedness.
Abstract: This paper presents a parameter covariance matrix estimator which is consistent even when the disturbances of a linear regression model are heteroskedastic. This estimator does not depend on a formal model of the structure of the heteroskedasticity. By comparing the elements of the new estimator to those of the usual covariance estimator, one obtains a direct test for heteroskedasticity, since in the absence of heteroskedasticity, the two estimators will be approximately equal, but will generally diverge otherwise. The test has an appealing least squares interpretation.
25,689 citations
TL;DR: In this paper, the authors explore the usefulness of analyzing firms from the resource side rather than from the product side, in analogy to entry barriers and growth-share matrices, the concepts of resource position barrier and resource-product matrices are suggested.
Abstract: Summary The paper explores the usefulness of analysing firms from the resource side rather than from the product side. In analogy to entry barriers and growth-share matrices, the concepts of resource position barrier and resource-product matrices are suggested. These tools are then used to highlight the new strategic options which naturally emerge from the resource perspective.
18,677 citations
"A Resource-Based Perspective On Cor..." refers methods in this paper
...To counter the IO view, Wernerfelt (1984), Dierickx and Cool (1989), and Prahalad and Hamel (1990) built resource-based theory around the internal competencies of firms....
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...To counter the IO view, Wernerfelt (1984) , Dierickx and Cool (1989), and Prahalad and Hamel (1990) built resource-based theory around the internal competencies of firms....
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TL;DR: The most powerful way to prevail in global competition is still invisible to many companies as discussed by the authors, which is why the concept of the corporation itself has not yet been recognized as a powerful competitive advantage.
Abstract: The most powerful way to prevail in global competition is still invisible to many companies. During the 1980s, top executives were judged on their ability to restructure, declutter, and delayer their corporations. In the 1990s, they’ll be judged on their ability to identify, cultivate, and exploit the core competencies that make growth possible — indeed, they’ll have to rethink the concept of the corporation itself.
15,465 citations
"A Resource-Based Perspective On Cor..." refers methods in this paper
...To counter the IO view, Wernerfelt (1984), Dierickx and Cool (1989), and Prahalad and Hamel (1990) built resource-based theory around the internal competencies of firms....
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...To counter the IO view, Wernerfelt (1984), Dierickx and Cool (1989), and Prahalad and Hamel (1990) built resource-based theory around the internal competencies of firms....
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