Financing Constraints and Environmental Performance: Management in Resource Constraint Settings

Chen, Qingping; Zhu, Xiaoyu; Luo, Meige; Zhang, Chen

doi:10.1155/2022/1803144

Cited by 3 publications

(3 citation statements)

References 53 publications

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“…The results of (Chen et al, 2022) are consistent with the findings presented in this paper, suggesting that financial restrictions play a significant role in shaping both the implementation of environmentally sustainable practices by firms and their subsequent performance in this domain.…”

Section: Theme 3: Resource Constraints For Implementing Sustainabilit...supporting

confidence: 90%

Integration of sustainability marketing into business strategies: Challenges during adoption

Tinonetsana,

Priscilla Musariwa

2024

IJRBS

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The objective of this study was to investigate the challenges encountered by organisations when integrating sustainable marketing into their strategic strategies. The research adopted a qualitative research design. Participants were selected from a representative sample of Zimbabwean organisations from various industries that have incorporated sustainable practices into their marketing strategy. Purposive sampling was used to select businesses encompassing various industries, sizes, and degrees of sustainability integration. This study, grounded in stakeholder theory, unveils challenges in implementing sustainable marketing strategies, including consumer awareness, resource constraints, hesitancy from stakeholders, competition from alternatives, regulatory complexities and measurement difficulties, underscoring the critical role of stakeholder engagement in navigating these challenges. Organisations must strategically incorporate sustainable practices by optimising resources, reducing inefficiencies, and aligning with sustainability goals, promoting the connection between resource optimization and environmental preservation. Further, they have leverage partnerships with sustainable suppliers, NGOs, and stakeholders to enhance sustainability initiatives by pooling resources, sharing costs, and overcoming budget constraints. Further study could investigate effective strategies for overcoming stakeholder hesitancy and fostering greater stakeholder engagement in sustainability initiatives.

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Section: Theme 3: Resource Constraints For Implementing Sustainabilit...supporting

confidence: 90%

Integration of sustainability marketing into business strategies: Challenges during adoption

Tinonetsana,

Priscilla Musariwa

2024

IJRBS

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“…In terms of the effect of financial constraints on CEP, Tian and Lin (2019) reported that for a minor obstacle in credit, the adverse effect on the environmental performance of firms is negligible whereas major obstacles in credit make it difficult to arrange investments for abatement in pollution. Chen et al (2022) developed a theoretical framework to elucidate the negative impact of financial constraint on the environmental performance of a group of companies in Shanghai Stock Exchange. The adverse impact of tighter restrictions on credit demotivates the firm to invest in the preservation of the environment that can be achieved through the channel of green management.…”

Section: Unveiling Credit Constraints' Mediating Role In Cep-fp Relat...mentioning

confidence: 99%

Can borrowing constraints enhance environmental sustainability? An alternative parametric approach

Dutta,

Ghosh,

Dutta

2023

Bus Strat Env

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The paper explores how restrictions of credit affect the turning point of the non‐linear relationship between financial performance and the environmental sustainability of manufacturing firms in India. Our results are in support of the inverted U‐shaped relationship between financial performance and environmental sustainability. The study builds upon an alternative long‐run specification, which avoids the non‐linear transformations of potentially non‐stationary regressors in panel estimation and finds evidence that the higher the firm's degree of credit constraints, the lower is its financial performance at the turning point, indicating the different finance‐sustainability paths across firms due to credit frictions. We also investigate the aforementioned relationship by considering the exporting potential of the firms.

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“…Thus, traditional financial institutions may be more inclined to lend to enterprises with stable profitability and low risks (Chen et al, 2022). Green finance, on the other hand, focuses more on the environmental impact and sustainability of an enterprise (Mejia-Escobar, González-Ruiz, & Duque-Grisales, 2020).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Does green finance enable firms to promote environmental performance: Evidence from random forest methods?

Xu,

Dong,

Yang

2023

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There is a limited body of research that specifically examines the influence of green finance on the environmental performance of enterprises. Employing the panel data of Chinese A-share listed firms from 2012 to 2017 and random forest methods, we intend to examine whether green finance contributes to promoting firms’ environmental performance. If yes, how does green finance promote firms’ environmental performance? Using various empirical tests, we obtain the main results as follows: First, the baseline results show that green finance is conducive to improving firms’ environmental performance. The baseline results are supported in various model settings, including Difference-In-Difference (DID), Bayesian Additive Regression Trees (BART), and matching approaches. Secondly, the internal mechanism tests show that a rise in green innovation and an improvement in green investment efficiency are the main channels through which green finance helps to improve firms’ environmental performance. In addition, considering firm-scale heterogeneity and ownership heterogeneity, we conduct heterogeneity checks. The results of heterogeneity checks show that the positive effect of green finance on the environmental performance of firms is only pronounced for small- and medium-scale firms and for non-state-owned enterprises. Our study expands the framework of green finance research on firms’ environmental performance and provides practical implications for the development of strategies for emerging economies.

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Financing Constraints and Environmental Performance: Management in Resource Constraint Settings

Cited by 3 publications

References 53 publications

Integration of sustainability marketing into business strategies: Challenges during adoption

Integration of sustainability marketing into business strategies: Challenges during adoption

Can borrowing constraints enhance environmental sustainability? An alternative parametric approach

Does green finance enable firms to promote environmental performance: Evidence from random forest methods?

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