Environmental sustainability orientation, competitive strategy and financial performance
Extant research has established that environmental sustainability orientation (ESO) has a positive influence on performance outcomes. Nevertheless, several contingencies tend to affect the strength of this relationship. In this study, we draw on natural resource-based theory to introduce competitive strategies as moderators in the ESO-performance nexus. Using time-lagged data obtained from 269 firms in Ghana, this study finds that firms pursuing the differentiation strategy can positively boost performance outcomes with ESO than without differentiation strategy. We also find that firms can use the low-cost or the integrated strategy to get higher impact on performance with ESO respectively. Based on the results, firms in Ghana do not need differentiation strategy in order to boost the effect of ESO on financial performance. Theoretical and practical implications are discussed.
The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link.
Citation : Danso A., Adomako S., Amankwah-Amoah J., Owusu-Agyei S. and Konadu R. (2019) Environmental sustainability orientation, competitive strategy and financial performance. Business Strategy and the Environment 28 (5), pp. 885-895
Research Group : FiBRe
Research Institute : Finance and Banking Research Group (FiBRe)
Peer Reviewed : Yes