Firm sustainable development and stakeholder engagement: The role of government support

Abstract

This study examines the sustainable development of Chinese firms in the context of the government implementing environmental policies that support green initiatives, from a resource‐based perspective. Using a sample of Chinese listed firms in the most polluting industries during the period 2001–2015, we find a positive relationship between environmental performance and economic performance. We also find that government‐controlled resources, including bank loans and tax benefits, are the mechanisms through which the effects of environmental investments are transformed into economic gains. Further analyses show that the positive association between environmental and economic performance holds for state‐owned firms only. These results indicate that although “being green” is associated with improvements in firm performance, such a strategy benefits only those firms that receive preferential treatment from the government. This study reveals that the Chinese Government, as the most influential stakeholder, plays an important role in determining the impact of environmental performance on economic performance.

Corporate social responsibility and financial performance: The roles of government intervention and market competition

“…Despite the increasing prevalence of CSR in China, research on whether and how CSR affects the financial performance of firms is scant. Focusing on one particular aspect of CSR, prior studies find that firm financial performance is positively related to environmental performance (Quan, Wu, Li, & Ying, ) and corporate philanthropy (Wang & Qian, ). Although these studies provide useful insights, they might be limited because one particular type of socially responsible behaviour is unlikely to capture the richness of a firm's engagement in CSR.…”

Environmental sustainability orientation and performance of family and nonfamily firms

“…One of the distinctive features that permeate the transition from the Millennium Development Goals to the Sustainable Development Goals is the relentless focus on ensuring and delivering on environmental sustainability (Economist Intelligence Unit (EIU), ; United Nations, , ). Informed by the growing awareness of the importance of managing global environmental problems such as climate change, substantial attention is being paid to environmental sustainability issues (Delmas & Toffel, ; Liu, Ghauri, & Sinkovics, ; Quan, Wu, Li, & Ying, ) and technology adoption (You, Dal Bianco, Lin, & Amankwah‐Amoah, ). Scholars have shown that improvement in a firm's sustainability activities can bring about superior performance (e.g., Amankwah‐Amoah, Danso, & Adomako, ; Moyano‐Fuentes, Maqueira‐Marín, & Bruque‐Camara, ; Nidumolu, Prahalad, & Rangaswami, ; Roxas, Ashill, & Chadee, ).…”

Proactive environmental strategy, innovation capability, and stakeholder integration capability: A mediation analysis

“…Proactive attitude and strong commitment on pollution reduction and environmental protection stimulate information flows and knowledge sharing between firms and various business players and help firms establish strong reputation and image thereby enhancing competitive advantages (Ateş, Bloemhof, van Raaij, & Wynstra, 2012;Darnall et al, 2010). Extant literature has primarily explored the impact of proactive environmental strategy on various firm performance such as market, financial, and environmental outcomes (Alt, Díez-de-Castro, & Lloréns-Montes, 2015;Liu, Guo, & Chi, 2015;Menguc, Auh, & Ozanne, 2010;Quan, Wu, Li, & Ying, 2018;Walker, Ni, & Huo, 2014) as well as different levels of moderators of such relationship (Aragón-Correa & Sharma, 2003;Christmann, 2000;Dixon-Fowler, Slater, Johnson, Ellstrand, & Romi, 2013).…”