A Resource-Based Perspective On Corporate Environmental Performance And Profitability

  title={A Resource-Based Perspective On Corporate Environmental Performance And Profitability},
  author={Michael V. Russo and Paul A. Fouts},
  journal={Academy of Management Journal},
Drawing on the resource-based view of the firm, we posited that environmental performance and economic performance are positively linked and that industry growth moderates the relationship, with the returns to environmental performance higher in high-growth industries. We tested these hypotheses with an analysis of 243 Finns over two years, using independently developed environmental ratings. Results indicate that “it pays to be green” and that this relationship strengthens with industry growth… 

Tables from this paper

Linking Environmental Management to Environmental Performance: The Interactive Role of Industry Context

In the past, corporate sustainability scholars advocated that, for many firms, environmental management could turn into a valuable capability conferring a competitive advantage. However, little

Corporate Social Performance, Resource Dependence and Firm Performance

Using resource dependence perspective we examine the relationship between different stakeholder groups and firm performance. Our results indicate that different stakeholder groups have different


  • Business, Economics
  • 2011
We conducted a longitudinal, quasi-experimental study in which we explored the effects of corporate sustainability on firm financial performance. We compared financial performance in 494 facilities

Corporate Social Responsibility: a Theory of the Firm Perspective

We outline a supply and demand model of corporate social responsibility (CSR). Based on this framework, we hypothesize that a firm's level of CSR will depend on its size, level of diversification,

Corporate Environmental and Economic Performance of Japanese Manufacturing Firms: Empirical Study for Sustainable Development

This study examines the relationships between environmental performance and economic performance in Japanese manufacturing firms. The environmental performance indicators include CO2 emissions and

IT, CSR And Industry Relationships: A Descriptive Study

From the resource-based perspective, corporate social responsibility (CSR) and investment in information technology (IT) are both associated with a firm’s profitable performance. Corporations, taking

Market Value Implications of Voluntary Corporate Environmental Initiatives (CEIs)

Although firms engage in a variety of practices to manage their internal environmental performance as well as those of their supply chains, and they often promote those efforts to concerned

A Contingent Resource-Based View of Proactive Corporate Environmental Strategy

We integrate perspectives from the literature on contingency, dynamic capabilities, and the natural resource-based view of the firm to propose how dimensions of the general competitive environment of

Environmental Performance: The Impact of R&D Intensity on Firms’ Environmental Concerns

This study investigates the relationship between R&D intensity and firms’ environmental concerns conceptualized as negative environmental externalities resulting from manufacturing activities. The

Sustaining Competitive Advantage Through Corporate Environmental Performance

This research investigates the relationship between a firm's environmental efforts and the sustainability of its competitive advantage by analyzing the effects of change in firm environmental



The Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance

This study comprehensively evaluated the links between systems of High Performance Work Practices and firm performance. Results based on a national sample of nearly one thousand firms indicate that

Performance, Slack, and Risk Taking in Organizational Decision Making

This research paper investigates the relationship between organizational performance and risk taking in organizational decision making. A complex model is proposed in which the direct relationship,

Corporate Social Performance Revisited

This article defines corporate social performance (CSP) and reformulates the CSP model to build a coherent, integrative framework for business and society research. Principles of social


Despite the consistency with which the theoretical and normative connections between human resource management practices and firm-level performance outcomes are made, empirical studies that link the

Does it pay to be green

This paper examines the relationships between the environmental performances and financial performances of large U.S. companies. The environmental performance is measured in pollution in pounds per

Firm Resources and Sustained Competitive Advantage

Understanding sources of sustained competitive advantage has become a major area of research in strategic management. Building on the assumptions that strategic resources are heterogeneously

Environmental leadership: From compliance to competitive advantage

Contemporary environmentalism in leading companies has become an integral part of organizational strategy. Such a proactive, advantage-driven approach involves change at every level. This article

Determinants of Financial Performance: A Meta-Analysis

A meta-analysis of results from 320 published studies relates environmental, strategic and organizational factors to financial performance. Some factors e.g., concentration and growth have been

A Resource-Based View of the Firm

Summary The paper explores the usefulness of analysing firms from the resource side rather than from the product side. In analogy to entry barriers and growth-share matrices, the concepts of resource


This paper uses a stakeholder framework to review the empirical literature on corporate social performance (CSP), focusing particularly on studies attempting to correlate social with financial