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Proactive environmental management and performance by a controlling family

Author

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  • Yi-Chun Huang
  • Ying-Jiuan Wong
  • Min-Li Yang

Abstract

Purpose - – This study examined how proactive environmental management affects firm performance and whether a controlling family moderates this effect. The paper aims to discuss these issues. Design/methodology/approach - – The study adopted content analysis to collect data on listed Taiwanese firms and used cross-sectional regression analysis to examine the relationship between proactive environmental management and firm performance as well as the moderating role of a controlling family. Findings - – The results indicated that not all types of proactive environmental management are positively associated with firm performance and that a controlling family might be more effective in low-risk proactive environmental management practices. Research limitations/implications - – The focus was on the impact of proactive environmental management from the perspective of stockholders. Future research could investigate its impact on other stakeholders as well. Practical implications - – The findings might convince managers that the stereotype of an environment-friendly firm – that the more its green initiatives, the less competitive it becomes – may not necessarily be true. Investing in product-focused pollution prevention could increase revenues and improve performance. Even though process-focused pollution prevention is negatively associated with firm performance, companies are not expected to reduce investment in green processes since they are required for the production of environment-friendly products. Originality/value - – This study adopted a multi-dimensional approach to reveal how different types of proactive environmental management affect firm performance. The authors used the controlling family as a moderating variable to determine whether it moderates the relationship between proactive environmental management and firm performance.

Suggested Citation

  • Yi-Chun Huang & Ying-Jiuan Wong & Min-Li Yang, 2014. "Proactive environmental management and performance by a controlling family," Management Research Review, Emerald Group Publishing Limited, vol. 37(3), pages 210-240, March.
    • Handle: RePEc:eme:mrrpps:v:37:y:2014:i:3:p:210-240
    DOI: 10.1108/MRR-09-2012-0196
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    Citations

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    Cited by:

    1. Karambu Kiende Gatimbu & Maurice Juma Ogada & Nancy Budambula & Samuel Kariuki, 2018. "Environmental sustainability and financial performance of the small‐scale tea processors in Kenya," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1765-1771, December.
    2. Concepción Garcés-Ayerbe & Pilar Rivera-Torres & Josefina L. Murillo-Luna & Cristina Suárez-Gálvez, 2022. "Does it pay more to be green in family firms than in non-family firms?," Review of Managerial Science, Springer, vol. 16(5), pages 1365-1386, July.
    3. Chulin Pan & Hongpeng Guo & Yufeng Jiang & Hanying Wang & Weihong Qi, 2020. "The double effects of female executives' participation on corporate sustainable competitive advantage through unethical environmental behavior and proactive environmental strategy," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2324-2337, September.
    4. Ivo Hristov & Antonio Chirico & Riccardo Camilli, 2022. "The role of Key Performance Indicators as a performance management tool in implementing corporate strategies: A critical review of the literature," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2022(1), pages 117-151.
    5. Rosa Maria Dangelico & Alberto Nastasi & Simone Pisa, 2019. "A comparison of family and nonfamily small firms in their approach to green innovation: A study of Italian companies in the agri‐food industry," Business Strategy and the Environment, Wiley Blackwell, vol. 28(7), pages 1434-1448, November.
    6. Karambu Kiende Gatimbu & Maurice Juma Ogada & Nancy L. M. Budambula, 2020. "Environmental efficiency of small-scale tea processors in Kenya: an inverse data envelopment analysis (DEA) approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(4), pages 3333-3345, April.
    7. Haddoud, Mohamed Yacine & Onjewu, Adah-Kole Emmanuel & Nowiński, Witold, 2021. "Environmental commitment and innovation as catalysts for export performance in family firms," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    8. Ana Rodríguez-Olalla & Carmen Avilés-Palacios, 2017. "Integrating Sustainability in Organisations: An Activity-Based Sustainability Model," Sustainability, MDPI, vol. 9(6), pages 1-17, June.
    9. Marc Dressler, 2023. "Generic strategic profiling of entrepreneurial SMEs – environmentalism as hygiene factor," International Entrepreneurship and Management Journal, Springer, vol. 19(1), pages 121-150, March.
    10. Gang Wang & Taiwen Feng & Zhanguo Zhu & Yisa Jiang, 2023. "Enabling green supply chain integration via green entrepreneurial orientation: Does environmental leadership matter?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 518-530, March.

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