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Six cases of corporate strategic responses to environmental regulation

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  • Rugman, Alan M.
  • Verbeke, Alain

Abstract

We analyse the green strategies of six multinational enterprises subject to environmental regulations. In this framework we add government regulations as an explicit 'sixth force' to Porter's basic 'five forces' model. First, we distinguish between shifts in corporate strategy towards market forces and regulators. Second, we examine the advantage of being a first mover. Third, we develop a resource-based perspective on 'green' strategies in an international context where firms can develop either 'localised' or 'internationally transferable' 'green' capabilities. We find that four multinational enterprises have developed internationally transferable green capabilities (DuPont, Honeywell, McDonald's and Xerox). One (Laidlaw) has a localised capability and one has none (Allied Signal).

Suggested Citation

  • Rugman, Alan M. & Verbeke, Alain, 2000. "Six cases of corporate strategic responses to environmental regulation," European Management Journal, Elsevier, vol. 18(4), pages 377-385, August.
    • Handle: RePEc:eee:eurman:v:18:y:2000:i:4:p:377-385
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    Cited by:

    1. Clemens, Bruce & Douglas, Thomas J., 2006. "Does coercion drive firms to adopt 'voluntary' green initiatives? Relationships among coercion, superior firm resources, and voluntary green initiatives," Journal of Business Research, Elsevier, vol. 59(4), pages 483-491, April.
    2. Mary R. Brooks, 2011. "Competition and Regulation in Maritime Transport," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 37, Edward Elgar Publishing.
    3. Anja Schaefer, 2009. "Corporate greening and changing regulatory regimes: the UK water industry," Business Strategy and the Environment, Wiley Blackwell, vol. 18(5), pages 320-333, July.
    4. Ioannis E. Nikolaou & George Kourouklaris & Thomas A. Tsalis, 2014. "A framework to assist the financial community in incorporating water risks into their investment decisions," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 4(2), pages 93-109, April.
    5. Narula, Rajneesh & Verbeke, Alain, 2015. "Making internalization theory good for practice: The essence of Alan Rugman's contributions to international business," Journal of World Business, Elsevier, vol. 50(4), pages 612-622.
    6. Jiafeng Gu, 2021. "Spatial Dynamics between Firm Sales and Environmental Responsibility: The Mediating Role of Corporate Innovation," Sustainability, MDPI, vol. 13(4), pages 1-18, February.
    7. Bruce Wayne Clemens & Maria Papadakis, 2008. "Environmental management and strategy in the face of regulatory intensity: radioactive contamination in the US steel industry," Business Strategy and the Environment, Wiley Blackwell, vol. 17(8), pages 480-492, December.
    8. André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), 2011. "A Handbook of Transport Economics," Books, Edward Elgar Publishing, number 12679.
    9. Ramakrishnan Ramanathan, 2018. "Understanding Complexity: the Curvilinear Relationship Between Environmental Performance and Firm Performance," Journal of Business Ethics, Springer, vol. 149(2), pages 383-393, May.
    10. Runa Sarkar, 2008. "Public policy and corporate environmental behaviour: a broader view," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 15(5), pages 281-297, September.
    11. Fuentes-Pila, Joaquin & Rodriguez Monroy, Carlos & Antelo, Ramon & Torrubiano, Juan & Roldan, Larisa, 2007. "Designing Food Supply Chains: An Application of Lean Manufacturing and Lean Supply Chain Paradigms to the Spanish Egg Industry," 2007 1st Forum, February 15-17, 2007, Innsbruck, Austria 6595, International European Forum on System Dynamics and Innovation in Food Networks.

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