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What Makes Companies Green? Organizational and Geographic Factors in the Adoption of Environmental Practices

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  • Richard Florida
  • Mark Atlas
  • Matt Cline

Abstract

In this paper we advance the hypothesis that organizational factors play a key role in the adoption of environmental innovations, referred to as environmentally conscious manufacturing (ECM) practices. We distinguish among three classes of organizational factors: organizational resources, organizational innovativeness, and performance monitoring systems. The research also explores the interplay of organizational factors and spatial or geographic factors (such as proximity to customers and suppliers) in the adoption of ECM practices. We employ a structured field research design, involving “matched pairs” of plants, to address these issues. The findings confirm the hypothesis. Organizational factors matter significantly in the process of ECM adoption. Furthermore, two classes of organizational factors are particularly significant to ECM adoption: organizational resources and performance monitoring systems. Performance monitoring systems composed of quantitative goals and related metrics are a particularly key factor. The research finds that geographic or spatial factors have little effect on the adoption of ECM practices, reflecting the significant geographic distance between customers and suppliers in the sample. There may be reason to expect that geographic factors play a more significant role, but this is a subject for future research.

Suggested Citation

  • Richard Florida & Mark Atlas & Matt Cline, 2001. "What Makes Companies Green? Organizational and Geographic Factors in the Adoption of Environmental Practices," Economic Geography, Taylor & Francis Journals, vol. 77(3), pages 209-224, July.
    • Handle: RePEc:taf:recgxx:v:77:y:2001:i:3:p:209-224
    DOI: 10.1111/j.1944-8287.2001.tb00162.x
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    Cited by:

    1. Adrian SOLOMON & Panagiotis KETIKIDIS & Felicia SIAVALAS, 2017. "Institutional Co-Creation Interfaces for Innovation Diffusion during Disaster Management," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 5(1), pages 77-95, March.
    2. Selma Regina MARTINS OLIVEIRA, 2019. "Relationship Between Technological Eco-Innovation Capacity And Innovation Performance: Evidence From Most Innovative Firms In The Usa," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 13(1), pages 163-178, November.
    3. Vincent FRIGANT (GREThA-GRES), 2009. "Is the automotive supply chain compatible with Corporate Social Responsible practices? (In French)," Cahiers du GRES (2002-2009) 2009-04, Groupement de Recherches Economiques et Sociales.
    4. Andiç, Esen & Yurt, Öznur & Baltacıoğlu, Tunçdan, 2012. "Green supply chains: Efforts and potential applications for the Turkish market," Resources, Conservation & Recycling, Elsevier, vol. 58(C), pages 50-68.
    5. Massimiliano Mazzanti & Roberto Zoboli, 2006. "Examining the Factors Influencing Environmental Innovations," Working Papers 2006.20, Fondazione Eni Enrico Mattei.
    6. Tomer, John F. & Sadler, Thomas R., 2007. "Why we need a commitment approach to environmental policy," Ecological Economics, Elsevier, vol. 62(3-4), pages 627-636, May.
    7. Giovanni Ferri & Marco Pini, 2019. "Environmental vs. Social Responsibility in the Firm. Evidence from Italy," Sustainability, MDPI, vol. 11(16), pages 1-20, August.
    8. Sanwar A. Sunny & Cheng Shu, 2019. "Investments, incentives, and innovation: geographical clustering dynamics as drivers of sustainable entrepreneurship," Small Business Economics, Springer, vol. 52(4), pages 905-927, April.
    9. Bang-Ning Hwang & Chi-Yo Huang & Chih-Hsiung Wu, 2016. "A TOE Approach to Establish a Green Supply Chain Adoption Decision Model in the Semiconductor Industry," Sustainability, MDPI, vol. 8(2), pages 1-30, February.
    10. Vasileiou, Efi & Georgantzis, Nikolaos & Attanasi, Giuseppe & Llerena, Patrick, 2024. "The role of innovation portfolio in green innovation decisions: A study of French and Italian firms," Technovation, Elsevier, vol. 130(C).
    11. Mazzanti, Massimiliano & Zoboli, Roberto, 2007. "Environmental Efficiency, Emission Trends and Labour Productivity: Trade-Off or Joint Dynamics? Empirical Evidence Using NAMEA Panel Data," Climate Change Modelling and Policy Working Papers 9320, Fondazione Eni Enrico Mattei (FEEM).
    12. Ignė Stalmokaitė & Johanna Yliskylä-Peuralahti, 2019. "Sustainability Transitions in Baltic Sea Shipping: Exploring the Responses of Firms to Regulatory Changes," Sustainability, MDPI, vol. 11(7), pages 1-23, March.
    13. Vasileiou, Efi & Georgantzis, Nikolaos & Attanasi, Giuseppe & Llerena, Patrick, 2022. "Green innovation and financial performance: A study on Italian firms," Research Policy, Elsevier, vol. 51(6).
    14. Muscio, Alessandro & Nardone, Gianluca & Stasi, Antonio, 2013. "Drivers of Eco-Innovation in the Italian Wine Industry," 2013 International European Forum, February 18-22, 2013, Innsbruck-Igls, Austria 164752, International European Forum on System Dynamics and Innovation in Food Networks.
    15. Kesidou, Effie & Demirel, Pelin, 2012. "On the drivers of eco-innovations: Empirical evidence from the UK," Research Policy, Elsevier, vol. 41(5), pages 862-870.
    16. Davide Antonioli & Massimiliano Mazzanti, 2009. "Techno-organisational strategies, environmental innovations and economic performances. Micro-evidence from an SME-based industrial district," Journal of Innovation Economics, De Boeck Université, vol. 0(1), pages 145-168.

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