Being ‘Green and Competitive’: The Impact of Environmental Actions and Collaborations on Firm Performance

Abstract

In this paper, we seek to enhance the understanding of the link between environmental management and firm performance, so contributing to the debate of being "green and competitive". Relying on the resource-based view, we study the effect of different environmental management capabilities on a firm's market and image performance. In particular, we analyze the capabilities to implement product and process-related environmental actions with different types of environmental focus (materials, energy, pollution) and the capabilities to develop environmental collaborations with different types of actors (both business actors and non-business actors). To this aim we conducted a survey on 122 Italian companies. Results show that market performance and image performance have partially different antecedents. Specifically, a firm's market performance is positively affected by the capabilities to implement environmental actions with a focus on energy and pollution and to develop environmental collaborations both with business and with non-business actors. On the other hand, a firm's image performance is positively affected by the capabilities to implement environmental actions with a focus on materials and to develop environmental collaborations with non-business actors.

Green Component Procurement Collaboration for Improving Supply Chain Management in the High Technology Industries: A Case Study from the Systems Perspective

“…Dangelico and Pontrandolfo [40] concluded that the benefit of green collaboration includes improving market performance (by accessing new markets and strengthening competitive advantage), enhancing corporate image performance (in its reputation and regulatory compliance), improving manufacturing performance (by increasing its efficiency of materials and energy usage), boosting financial performance (by increasing margins or market share due to customers' willingness to pay a premium price for products) and containing supply chain cost. While the triple objectives-social, environmental, and economic considerations-are integrated, the benchmarking procedure in this study identified environmental standards and social values as the prior objectives for the green component procurement collaboration.…”

Green supply chain collaboration and incentives: Current trends and future directions

“…It is not well known how the green benefits can be shared among the members. Green collaboration benefits listed out in the previous studies are reduction of business waste (Azevedo et al, 2011), environmental impact (reducing pollutant emission, using renewable energy sources, avoiding the use of toxic substances, and using environmentally friendly materials), market performance (access to new markets; competitive advantage), corporate image performance (reputation; regulatory compliance), manufacturing performance (efficiency in the use of materials; energy efficiency, innovation), financial performance(Increased margins or market share; customers willingness to pay a premium price for products)and supply chain cost (Dangelico and Pontrandolfo, 2013). The overall benefits out of green collaboration reside with the focal companies and few studies reported the burden to the upstream suppliers.…”

“…If we view relationship in terms of dependency and certainties variables, researchers started viewing green relationship from the view of economic, technological and political elements (Vachon, 2007). Similarly, under certainties few researchers attempted to discuss the role of contractual and competence elements (Vachon and Klassen, 2008;Sheu, 2011;Chen and Huang, 2012;Cheng 2011;Gavronski et al, 2011;Dangelico and Pontrandolfo, 2013).Few articles have attempted to discuss the constraints of inter-firm relationship such as bargaining process to move towards green supply chain coordination and the role of interdependence between producer and retailer through third party intervention (Sheu, 2011;2014;Green 2012). …”

“…Similarly, it is important to know green thinking is aligned among the supply chain members process and products. Previous studies so far acknowledged the importance of capabilities development within focal companies and suggested how it will be helpful to achieve collaboration with different type of actors (Dangelico and Pontrandolfo, 2013;Gavronski et al, 2011). It is rare to find a study which discusses how green external integration can be achieved similar to ones like Keiretsu process.…”

Local and regional energy companies offering energy services: Key activities and implications for the business model

“…Dangelico and Pontrandolfo, 2013). However, despite a growing interest in finding ways to increase energy efficiency, the industry still harbors untapped energy efficiency potential, conceptualized as energy efficiency and energy service gaps (Hirst and Brown, 1990;Jaffe and Stavins, 1994).…”