Responsible management competences are the skills of managers to deal with the triple bottom line, stakeholder value and moral dilemmas. In this paper, we analyse how managers develop responsible management competences and how the competences interact with capabilities at the organisational level. The paper contributes to the responsible management literature by integrating research on absorptive capacity and organisational learning. By creating intersections between these disparate research streams, this study enables a better understanding of the development of responsible management competences. The (...) paper is a systematic literature review on environmental competences, which are a type of responsible management competences referring to the managerial skills aimed at improving environmental sustainability. The findings demonstrate that managers who are able to recognize and acquire external knowledge develop environmental competences, and organisations capable of assimilating, transforming and exploiting knowledge develop environmental capabilities. The paper establishes that a dynamic and recursive relation exists between environmental competences and capabilities. Antecedents and contextual conditions specific to a sustainability context, such as eco-centric values and stakeholder pressures, influence the development of environmental competences. The study shows that environmental competences have a positive direct effect on environmental performance, and an indirect effect as a mediator between environmental capabilities and performance. (shrink)

We investigate if private family firms have a greater environmental performance focus than nonfamily firms, and if this relationship is moderated by the strength of the firms’ social embeddedness. We empirically test these issues using a representative sample of 1452 private Australian small and medium-sized enterprises. Contrary to prevailing assumptions and previous indicative findings in the public firm context, our results show that family firms have a lower environmental performance focus than nonfamily firms. However, in cases where the firm is (...) highly embedded in the social community, we find that family firms have a higher environmental performance focus. We explain our unexpected results by considering the role of financial risk in publicly held family firms. Accordingly, we posit that prior findings in the public firm context may be evidence of families expropriating wealth from nonfamily shareholders rather than altruistic pro-environmental behavior. (shrink)

This study sheds new light on why healthcare organisations are having difficulty responding to the growing pressure from stakeholders to proactively address their responsibility to deliver high-quality services without harming the environment. Basing our work on past research on stakeholder pressure and environmental barriers, we conceptualise and empirically test the effect of the interplay between stakeholder pressure and internal barriers on healthcare organisations’ adoption of proactive environmental strategies. To test the proposed hypotheses, a survey was carried out among medical directors (...) of Italian healthcare organisations in 2012. Our results show that the lack of commitment to environmental issues within the organisation represents the main barrier to healthcare organisations’ implementing PESs. Furthermore, the difficulties in evaluating the impacts of advanced environmental practices negatively moderate the influence of stakeholders on developing PESs. Our findings contribute to extending previous knowledge on PESs in two ways: focusing on the healthcare sector, our study investigates the phenomenon in a research context that has been largely overlooked in the sustainability literature; and cross-cutting previous research on stakeholder pressure and internal barriers, the study conceptualises and tests a more complete framework for understanding the adoption of PESs. (shrink)

Drawing on the natural-resource-based view, we propose that employee stakeholder integration is linked to environmental performance through firms’ proactive environmental strategies, and that this link is contingent on shared vision. We tested our model with a cross-country and multi-industry sample. In support of our theory, results revealed that firms’ proactive environmental strategies translated employee stakeholder integration into environmental performance. This relationship was pronounced for high levels of shared vision. Our findings demonstrate that shared vision represents a key condition for advancing (...) the corporate greening agenda through proactive environmental strategies. We discuss implications for the CSR and the environmental management literatures, with a particular focus on the NRBV and stakeholder integration debates. (shrink)

Non-governmental organizations are increasingly important drivers for businesses’ self-regulation to operate in a sustainable way. We shift the perspective on NGOs from focusing on their advocacy role to focusing on their accountability for having sustainable internal operations. In a multiple case analysis, we explore the question ‘What are the drivers and barriers to sustainable conduct of NGOs that are sustainability advocates?’ Drawing on institutional theory, we obtain novel insights into the legitimacy-seeking motivations for sustainable conduct in the specific context of (...) advocacy NGOs. We found that, affected by its mission, the cultural-cognitive drive is particularly high, with sustainable conduct as an internally ‘taken-for-granted’ behavior, followed by the normative drivers, with the balance between perceived vulnerability of needing to ‘walk the talk’ and the sense of immunity due to lack of external scrutiny, and there are hardly any regulative drivers. Furthermore, these organizations face idiosyncratic trade-offs when balancing investments in their advocacy missions with investments in sustainable operations, reflecting ethical dilemmas. In a broader sense, this research elucidates the way advocates cope in situations of institutional complexity, with conflicting institutional demands between their mission and role-model function. (shrink)

Despite the growing importance of stakeholder management, few studies have empirically examined the influence of stakeholder relationship capability on firm innovation, especially in emerging economies. This study investigates how SRC relates to firm innovation in the presence of governmental intervention and in combination with firm-level characteristics. Using a survey and multiple secondary datasets on the listed Chinese firms, our findings indicate that SRC is positively associated with firm innovation. Moreover, advanced legal development and high-tech status strengthen the positive link between (...) SRC and innovation, whereas state ownership and firm age weaken this relationship. These findings provide novel insights into how firms use stakeholder management to enhance innovation that is beneficial for economic growth. (shrink)

Corporate environmental ethics has moved from a niche issue within business strategy to a potential source of competitive advantage. Firms, however, are comprised of individuals who vary in their personal beliefs regarding environmental responsibility. Environmental stewards are those employees whose attitudes and actions reflect environmental concern. Top management can convey similar environmental values through the creation of eco-capabilities. Applying logic from the natural resource-based view of the firm, we build a model to test how the alignment of environmental values impacts (...) multiple outcomes. We conduct a time-lagged examination using multi-level data from frontline employees, their managers, and their customers. We find that firms can ‘activate’ their corporate environmental ethics through eco-capabilities. Specifically, environmental stewards find more meaning in their work when managers perceive high levels of eco-capabilities within the firm. This meaningful work increases employee brand advocacy and customer satisfaction. Together, we demonstrate how corporate environmental ethics translates to the frontline and the customers they serve. (shrink)

What allows MNCs to maintain their sustainability practices over the long-term? This is an important but under-examined question. To address this question, we investigate both the development and sustenance of sustainability practices. We use the dynamic capabilities perspective, rooted in resource-based view literature, as the theoretical basis. We argue that MNCs that simultaneously pursue both higher R&D intensity and higher internationalization are more capable of developing and maintaining sustainability practices. We test our hypotheses using longitudinal panel data from 1989 to (...) 2009. Results suggest that MNCs that have a combination of both high R&D intensity and high internationalization are (i) likely to develop more sustainability practices and (ii) are likely to maintain more of those practices over a long-term. As a corollary, MNCs that have a combination of both low R&D and low internationalization usually (i) end up developing little or no sustainability practices and (ii) find it difficult to sustain whatever little sustainability practices they might have developed. (shrink)

The impact of socially responsible corporate behavior on economic performance is a major preoccupation of managers today. This article explores the links between narrowly defined constructs: stakeholder orientation, environmental proactivity and profitability, from the perspectives of stakeholder theory and resource-based theory. We collected data on the food and beverage, and household and personal products industries. Using structural equation modeling, this paper makes two contributions. We found a negative link between companies simply having a higher stakeholder orientation and profitability. Importantly, however, (...) environmental proactivity not only had a positive impact on profitability, but also appeared to mediate the relationship between stakeholder orientation and profitability. In other words, if a company is more environmentally proactive, it will be more attentive to a broad array of stakeholders, and this will in turn contribute positively to profitability. (shrink)

A growing number of companies are implementing proactive environmental strategies with the objective of gaining competitive advantage through an enhanced reputation, the reduction in production costs, and a first-mover advantage in the green product market. Yet according to the natural-resource-based view, the development and maintenance of unique and valuable environmental capabilities are the central elements allowing companies to gain financial benefit from their proactive environmental strategy. In this context, management control systems can contribute to the development of environmental capabilities by (...) focusing attention on strategic priorities and stimulating dialogue. Through a single case study, and building on Simons’ four levers of control, we propose a conceptual framework of management control levers that show how companies can enhance stakeholder integration capability through the joint use of belief, boundary, and diagnostic control systems; shared vision capability through the joint use of the belief and boundary systems; organizational learning capability through the use of interactive control systems and to a lesser extent diagnostic control systems; and continuous innovation capability through the use of interactive control systems, belief systems and to a lesser extent diagnostic control systems. (shrink)