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Environmental proactivity, competitive strategy, and market performance: The mediating role of environmental reputation

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  • Nguyen Phong Nguyen
  • Samuel Adomako

Abstract

This article examines the impact of small and medium‐sized enterprises' (SMEs) proactive environmental strategy on market performance through the mediating mechanism of environmental reputation. In addition, we investigate the potential moderating role of competitive strategies on the environmental reputation‐market performance nexus. Data were collected from 223 SMEs. Using the hierarchical multiple regression analysis, the results show that a proactive environmental strategy positively enhances environmental reputation. Also, the influence of proactively environmental strategy on market performance is mediated by environmental reputation. In addition, our findings show the relationship between environmental reputation and market performance is greater for firms that adopt the differentiation strategy but not significant for firms adopting the low‐cost and integrated strategies. Our study offers several theoretical and practical implications.

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  • Nguyen Phong Nguyen & Samuel Adomako, 2021. "Environmental proactivity, competitive strategy, and market performance: The mediating role of environmental reputation," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 2008-2020, May.
    • Handle: RePEc:bla:bstrat:v:30:y:2021:i:4:p:2008-2020
    DOI: 10.1002/bse.2729
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    3. Ricky Y. K. Chan & Jennifer W. M. Lai & Namwoon Kim, 2022. "Strategic motives and performance implications of proactive versus reactive environmental strategies in corporate sustainable development," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2127-2142, July.
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