Adoption of green strategy by Danish firms

Abstract

Purpose – The purpose of this study was to examine the issue of corporate environmentalism from a managerial perspective, specifically in connection to top management commitment and the need for competitive advantage, which can be integrated into the decision making of environmental strategies. Design/methodology/approach – This study uses data from a recent online survey of 77 Danish firms. Surveyed firms in the study were divided into two categories based on their adoption of a green strategy. Univariate analysis of variance and step-wise discriminant analysis were used to identify variables that discriminate between these firms. Findings – The results revealed that systematic planning to develop a green strategy coupled with each firm's view of the importance of formulating and implementing a green strategy are the key factors discriminating between the two groups of firms. Research limitations/implications – Since this study did not consider external factors such as, governmental regulation, NGO pressure, etc. the authors do not rule out the importance of these factors. But it makes sense to conclude both internal and external factors (no necessarily equally) contributing to a successful adoption of green strategy. Practical implications – It appears that adoption of a green strategy is a result of, mostly, internal factors. These factors are certainly within the control of management. Adopting any new strategy requires a wide range of knowledge and skills. Unfortunately, many managers and employees are deficient on their views about the importance of formulating and pursuing a green strategy. They need to be informed that half-hearted efforts in adopting a green strategy make the process both slow and difficult. Social implications – Management commitment to systematic planning to develop and implement a green strategy is essential. Committed managers systematically explore the possibilities of gaining competitive advantages through a proactive strategy by transforming the nature of their products and organization. However, the management mindset does not change solely due to inner managerial drives, but in a more complex interplay with outside stakeholders, including customers, consumers, and non-governmental bodies. Therefore, the riskiest venture occurs when the firm and its management are not totally committed. Originality/value – Developing a foundation for adopting a green strategy and verifying the results should contribute to a more comprehensive managerial understanding of how green strategies should be adopted by firms.

Does Code of Conduct Moderate Corporate Attributes and Carbon Emission Disclosure?

“…Therefore, the greening of companies has to be conceived beyond the economic level of the company and is legal from a legal point of view and with important stakeholders (Moini et al, 2014). Also, Miles and Covin (2000) find that environmental motivation may come from the reputation associated with corporate greening, as it can ultimately improve a company's marketing and financial performance.…”

“…Research (Duarte & Cruz-Machado, 2013) recognize Green Up Lean & Green strategies. Not many found that using Moini, Soresen, and Kristiansen (2014) measurement modifications takes into account content analysis, which uses 4 themes, starting with formulating and pursuing a green strategy, the level of management involvement in the green strategy, changes in the business model of the company and the organization and Green Strategy Management to measure the extent to which a green industrial strategy can be formulated and pursued and what impact it has on the whole of the industry to understand the impact of climate change on the industry competence for emissions management, expressed in carbon emissions data disclosure.…”

Managing Economic Innovations – Ideas and Institutions

“…Since the 1970s, numerous environmental laws and regulations have been enacted, leading to an "ecorevolution" in economics (Lin, Chen, 2018). Green decision-making implies that decisions are made within environmental constraints, with an emphasis on conservation of natural resources and improvement in the quality of life of consumers (Sorensen et. al., 2014).…”

“…The main idea is that a business can be profitable while having sustainable aims such as preserving the ecosystem, counteracting climate change, reducing environmental degradation and deforestation, improving farming practices and improving the environment, transporting drinking water, and/or maintaining biodiversity (Dean, McMullen, 2007). Therefore, environmental entrepreneurship could be an opportunity for reduction of environmental degradation "Greening the firm" is a pervasive topic as it touches on all aspects of a firm, including the firm's products and processes, business model, organizational design and management, and financial performance, making it a topic that is relevant across all sub-disciplines of business management (Sorensen et al, 2014).…”

Determinants of Environmental Performance with the Carbon Management Strategy as an Intervening Variable

“…Research by Wahyuni and Ratnatunga (2015) investigated carbon strategies and carbon management adopted from companies that differed in level from Australia's national energy market. Danish Firm's adoption of green strategy (Hamid Moini, 2014) is a study that aims to examine the issue of corporate environmentalism from a managerial perspective, specifically related to top management commitment and competitive advantage, which are put together for decision making for environmental strategies.…”