Is the Red Dragon Green? An Examination of the Antecedents and Consequences of Environmental Proactivity in China

Journal of Business Ethics

Volumn 125, Issue 1, 2014, Pages 27-43

  Walker, Kent ^a   Ni, Na ^b   Huo, Weidong ^c  

^a UNIVERSITY OF WINDSOR   (Canada)

^b HONG KONG POLYTECHNIC UNIVERSITY   (Hong Kong)

^c SOUTHWESTERN UNIVERSITY OF FINANCE AND ECONOMICS   (China)

Author keywords

China; Competitive advantage; Environmental proactivity; Motivation; Reputation; Stakeholder pressure

Indexed keywords

EID: 84920994517     PISSN: 01674544     EISSN: 15730697     Source Type: Journal    
DOI: 10.1007/s10551-013-1903-z     Document Type: Article

References (86)

1. Adams, M., & Hardwick, P. (1998). An analysis of corporate donations: United Kingdom evidence. Journal of Management Studies,35(5), 641–654.
2. Aiken, L. S., & West, S. G. (1991). Multiple regression: Testing and interpreting interactions. Newbury Park, London Sage.
3. Ambec, S., & Lanoie, P. (2008). Does it pay to be green? A systematic overview. Academy of Management Perspectives,22(4), 45–62.
4. Anderson, L. M., & Bateman, T. S. (2000). Individual environmental initiative: Championing natural environmental issues in U.S. business organizations. Academy of Management Journal, 43(4), 548–570.
5. Arora, S., & Cason, T. N. (1996). Why do firms volunteer to exceed environmental regulations? Understanding participation in EPA’s 33/50 program. Land Economics,72(4), 413–432.
6. Banerjee, S. B. (2001). Managerial perceptions of corporate environmentalism: Interpretations from industry and strategic implications for organizations. Journal of Management Studies,38(4), 489–513.
7. Bansal, P., & Bogner, W. C. (2002). Deciding on ISO 14001: Economics, institutions, and context. Long Range Planning,35(3), 269–290.
8. Bansal, P., & Clelland, I. (2004). Talking trash: Legitimacy, impression management, and unsystematic risk in the context of the natural environment. Academy of Management Journal,47(1), 93–103.
9. Bansal, P., & Roth, K. (2000). Why companies go green: A model of ecological responsiveness. Academy of Management Journal,43(4), 717–736.
10. Barnett, M. L. (2007). Stakeholder influence capacity and the variability of financial returns to corporate social responsibility. Academy of Management Review,32(3), 794–816.
11. Berchicci, L., & King, A. (2007). Chapter 11: Postcards from the edge. Academy of Management Annals,1(1), 513–547.
12. Brammer, S., & Millington, A. (2008). Does it pay to be different? An analysis of the relationship between corporate social and financial performance. Strategic Management Journal,29(12), 1325–1343.
13. Christmann, P. (2000). Effects of “best practices” of environmental management on cost advantage: The role of complementary assets. Academy of Management Journal,43(4), 663–680.
14. Christmann, P., & Taylor, G. (2001). Globalization and the environment: Determinants of firm self-regulation in China. Journal of International Business Studies,32(3), 439–458.
15. Darnall, N., Henriques, I., & Sadorsky, P. (2010). Adopting proactive environmental strategy: The influence of stakeholders and firm size. Journal of Management Studies,47(6), 1072–1094.
16. Davis, G. F., & Thompson, T. A. (1994). A social movement perspective on corporate control. Administrative Science Quarterly,39(1), 141–173.
17. Dean, T. J., & Brown, R. L. (1995). Pollution regulation as a barrier to new firm entry: initial evidence and implications for future research. Academy of Management Journal,38(1), 288–303.
18. Delmas, M. A., Hoffmann, V. H., & Kuss, M. (2011). Under the tip of the iceberg: Absorptive capacity environmental strategy, and competitive advantage. Business & Society,50(1), 116–154.
19. Delmas, M. A., & Montes-Sancho, M. (2010). Voluntary agreements to improve environmental quality: Symbolic and substantive cooperation. Strategic Management Journal,31(6), 575–601.
20. Delmas, M. A., & Montiel, I. (2008). The diffusion of voluntary international management standards: Responsible care, ISO 9000, and ISO 14001 in the chemical industry. Policy Studies Journal,36(1), 65–93.
21. Delmas, M. A., & Toffel, M. W. (2008). Organizational responses to environmental demands: Opening the black box. Strategic Management Journal,29(10), 1027–1055.
22. DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review,48(2), 147–160.
23. Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of Management Review,20(1), 65–91.
24. Dyer, W. (2008). Change your thoughts—Change your life: Living the wisdom of the Tao. Maui, HI: Hay House.
25. Faucheux, S., Nicolai, I., & O’Connor, M. (1998). Globalization, competitiveness, governance and environment: What prospects for a sustainable development? In S. Faucheux & J. Gowdy (Eds.), Sustainability and firms, technological change and the changing regulatory environment. Northampton, MA: Edward Elgar Publishing.
26. Fineman, S., & Clarke, K. (1996). Green stakeholders: Industry interpretations and response. Journal of Management Studies,33(6), 715–730.
27. Fombrun, C. (1996). Reputation: Realizing value from the corporate image. Boston: Harvard Business School Press.
28. Francesch-Huidobro, M., Lo, C. W., & Tang, S. (2012). The local environmental regulatory regime in China: Changes in pro-environment orientation, institutional capacity, and external political support in Guangzhou. Environment and Planning A,44(10), 2493–2511.
29. Freeman, R. (1984). Strategic management: A stakeholder approach. Boston: Pitman.
30. Gao, Y. (2009). Corporate social performance in China: Evidence from large companies. Journal of Business Ethics,89(1), 23–25.
31. Ghobadian, A., Viney, H., James, P., & Liu, J. (1995). The influence of environmental issues in strategic analysis and choice: A review of environmental strategy among top UK corporations. Management Decision,33(10), 46–58.
32. Gore, A. (2009). Our choice: A plan to solve the climate crisis. Emmaus, PA: Rodale Inc.
33. Hart, S. L. (1995). A natural-resource-based view of the firm, Academy of Management. Academy of Management Review,20(4), 986.
34. Hart, S. L. (2005). Capitalism at the crossroads: The unlimited business opportunities in solving the world’s most difficult problems. Upper Saddle River, NJ: Wharton School Publishing.
35. Hart, S. L., & Ahuja, G. (1996). Does it pay to be green? An empirical examination of the relationship between emission reduction and firm performance. Business Strategy & the Environment,5(1), 30–37.
36. Henriques, I., & Sadorsky, P. (1996). The determinants of an environmentally responsive firm: An empirical approach. Journal of Environmental Economics and Management,30(3), 381–395.
37. Henriques, I., & Sadorsky, P. (1999). The relationship between environmental commitment and managerial perceptions of stakeholder importance. Academy of Management Journal,42(1), 87–99.
38. Hillman, A. J., & Hitt, M. A. (1999). Corporate political strategy formulation: A model of approach participation, and strategy decisions. Academy of Management Review,24(4), 825–842.
39. Huang, P., Zhang, X., & Deng, X. (2006). Survey and analysis of public environmental awareness and performance in Ningbo, China: A case study on household electrical and electronic equipment. Journal of Cleaner Production,14(18), 1635–1643.
40. Ip, P. (2008). Corporate social responsibility and crony capitalism in Taiwan. Journal of Business Ethics,79(1), 167–177.
41. Jamali, D. (2008). A stakeholder approach to corporate social responsibility: A fresh perspective into theory and practice. Journal of Business Ethics,82(1), 213–231.
42. Lai, K., & Wong, C. W. Y. (2012). Green logistics management and performance: Some empirical evidence from chinese manufacturing exporters. Omega,40(3), 267–282.
43. Lau, J., & Waldmeir, P. (2010, June 11). Fears grow over china labour unrest. Financial Times 16.
44. Lee, M. (2011). Configuration of external influences: The combined effects of institutions and stakeholders on corporate social responsibility strategies. Journal of Business Ethics,102(2), 281–298.
45. Lee, S. Y., & Rhee, S.-K. (2007). The change in corporate environmental strategies: A longitudinal empirical study. Management Decision,45(2), 196–216.
46. Li, W., & Zhang, R. (2010). Corporate social responsibility ownership structure, and political interference: Evidence from China. Journal of Business Ethics,96(4), 631–645.
47. Lin, L.-W. (2010). Corporate social responsibility in China: Window dressing or structural change? Berkeley Journal of International Law,28(1), 64–100.
48. Liu, X., Liu, B., Shishime, T., Yu, Q., Bi, J., & Fujitsuka, T. (2010). An empirical study on the driving mechanism of proactive corporate environmental management in China. Journal of Environmental Management,91(8), 1707–1717.
49. Liu, W., & Lu, D. (2002). Rethinking the development of economic geography in mainland China. Environment and Planning A,34(12), 2107–2126.
50. Lo, C. W., & Fryxell, G. E. (2005). Governmental and societal support for environmental enforcement in China: An empirical study in Guangzhou. The Journal of Development Studies,41(4), 558–588.
51. Lo, C. W., Fryxell, G. E., & Van Rooij, B. (2009). Changes in enforcement styles among environmental enforcement officials in China. Environment and Planning A,41(11), 2706–2723.
52. Lockett, A., Moon, J., & Visser, W. (2006). Corporate social responsibility in management research: Focus, nature, salience and sources of influence. Journal of Management Studies,43(1), 115–136.
53. Lopez-Gamero, M. D., Claver-Cortes, E., & Molina-Azorin, J. F. (2008). Complementary resources and capabilities for an ethical and environmental management: A qual/quan study. Journal of Business Ethics,82(3), 701–732.
54. Ma, X., & Ortolano, L. (2000). Environmental regulation in China: Institutions, enforcement, and compliance. New York: Rowan & Littlefield Publishers.
55. Marcus, A., & Geffen, D. (1998). The dialectics of competency acquisition: Pollution prevention in electric generation. Strategic Management Journal,19(12), 1145–1168.
56. Margolis, J. D., & Walsh, J. P. (2003). Misery loves companies: Rethinking social initiatives by business. Administrative Science Quarterly,48(2), 268–305.
57. Majumdar, S. K., & Marcus, A. A. (2001). Rules versus discretion: The productivity consequences of flexible regulation. Academy of Management Journal,44, 170–179.
58. Mayer, D. M., Kuenzi, M., Greenbaum, R., Bardes, M., & Salvador, R. (2009). How low does ethical leadership flow? Test of a trickle-down model. Organizational Behavior and Human Decision Processes,108(1), 1–13.
59. Meyer, J., & Rowan, B. (1977). Institutional organizations: Formal structure as myth and ceremony. American Journal of Sociology,83, 340–363.
60. Miles, M. P., & Covin, J. G. (2000). Environmental marketing: A source of reputational competitive, and financial advantage. Journal of Business Ethics,23(3), 299–311.
61. Mitchell, R. K., Agle, B. R., & Wood, D. J. (1997). Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts, Academy of Management. Academy of Management Review,22(4), 853–886.
62. Moore, G. (2001). Corporate social and financial performance: An investigation in the U.K. supermarket industry. Journal of Business Ethics, 34(3/4), 299–315.
63. Orlitzky, M., Schmidt, F. L., & Rynes, S. L. (2003). Corporate social and financial performance: A meta-analysis. Organization Studies,24(3), 403–441.
64. Pacala, S. (2004). Stabilization wedges: Solving the climate problem for the next 50 years with current technologies. Science,305(5686), 968–972.
65. Podsakoff, P. M., Mackenzie, S. B., & Lee, J-Y. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology,88(5), 879–903.
66. Porter, M. E., & van der Linde, C. (1995). Toward a new conception of the environment–competitiveness relationship. Journal of Economic Perspectives,9(4), 97–118.
67. Rooney, C. (1993). Economics of pollution prevention: How waste reduction pays. Pollution Prevention Review,3, 261–276.
68. Rueda-Manzanares, A., Aragón-Correa, J. A., & Sharma, S. (2008). The influence of stakeholders on the environmental strategy of service firms: The moderating effects of complexity uncertainty and munificence. British Journal of Management,19(2), 185–203.
69. Russo, M. V., & Fouts, P. A. (1997). A resource-based perspective on corporate environmental performance and profitability. Academy of Management Journal,40(3), 534–559.
70. Sharfman, M. P., & Fernando, C. S. (2008). Environmental risk management and the cost of capital. Strategic Management Journal,29(6), 569–592.
71. Sharma, S. (2000). Managerial interpretations and organizational context as predictors of corporate choice of environmental strategy. Academy of Management Journal,43(4), 681–697.
72. Sharma, S., & Henriques, I. (2005). Stakeholder influences on sustainability practices in the Canadian forest products industry. Strategic Management Journal,26(2), 159–180.
73. Sharma, P., & Sharma, S. (2011). Drivers of proactive environmental strategy in family firms. Business Ethics Quarterly,21(2), 309–334.
74. Somers, M. J. (2001). Ethical codes of conduct and organizational context: A study of the relationship between codes of conduct, employee behavior and organizational values. Journal of Business Ethics,30(2), 186–195.
75. Tang, S., Lo, C. W., & Fryxell, G. E. (2003). Enforcement styles, organizational commitment, and enforcement effectiveness: An empirical study of local environmental protection officials in urban China. Environment and Planning A,35(1), 75–94.
76. Tang, S., & Zhan, X. (2008). Civic environmental NGOs, civil society, and democratisation in China. Journal of Development Studies,44(3), 425–448.
77. Tao, J., & Mah, D. N. (2009). Between market and state: Dilemmas of environmental governance in China’s sulphur dioxide emission trading system. Environment and Planning C: Government and Policy,27(1), 175–188.
78. Van Rooij, B. (2006). Regulating land and pollution in china: Lawmaking, compliance, and enforcement; theory and cases. Leiden: Leiden University Press.
79. Walker, K. (2010). A systematic review of the corporate reputation literature: Definition measurement, and theory. Corporate Reputation Review,12(4), 357–387.
80. Walker, K., & Wan, F. (2012). The harm of symbolic actions and green-washing: Corporate actions and communications on environmental performance and their financial implications. Journal of Business Ethics,109(2), 227–242.
81. Wang, H., & Qian, C. (2011). Corporate philanthropy and corporate financial performance: The roles of stakeholder response and political access. Academy of Management Journal,54(6), 1159–1181.
82. Yang, G. B. (2005). Environmental NGOs and institutional dynamics in China. The China Quarterly,181, 46–66.
83. Ye, K., & Zhang, R. (2011). Do lenders value corporate social responsibility? Evidence from China. Journal of Business Ethics,104(2), 197–206.
84. Yuan, Z., Bi, J., & Moriguichi, Y. (2006). The circular economy: A new development strategy in China. Journal of Industrial Ecology,10(1–2), 4–8.
85. Zhang, B., Bi, J., Yuan, Z., Ge, J., Liu, B., & Bu, M. (2008). Why do firms engage in environmental management? An empirical study in China. Journal of Cleaner Production,16(10), 1036–1045.
86. Zhu, Q., Sarkis, J., & Lai, K. (2007). Green supply chain management: Pressures practices and performance within the Chinese automobile industry. Journal of Cleaner Production,15(11), 1041–1052.