Adopting Proactive Environmental Strategy: The Influence of Stakeholders and Firm Size

Journal of Management Studies, Forthcoming

41 Pages Posted: 27 Jul 2009 Last revised: 3 Feb 2014

See all articles by Nicole Darnall

Nicole Darnall

Arizona State University - School of Sustainability

Irene Henriques

York University - Schulich School of Business

Perry Sadorsky

York University - Schulich School of Business

Date Written: July 26, 2009

Abstract

While smaller firms are less likely to undertake as many environmental practices as larger firms, extant literature suggests that smaller firms may be more responsive to stakeholder pressures. This paper contributes to the development of stakeholder theory by deriving a size moderated stakeholder model and applying it to a firm’s adoption of proactive environmental practices. The empirical results show that smaller firms are more responsive to value-chain, internal and regulatory stakeholder pressures. These findings suggest that researchers evaluating organizations and the natural environment should be cautious about associating stakeholder pressures directly with firms’ environmental strategies. Rather, the relationship between stakeholder pressures and environmental strategy tends to vary with size.

Keywords: strategic environmental management, stakeholders, firm size, moderation effects, proactive environmental strategy

JEL Classification: M1, M14, F23, M19

Suggested Citation

Darnall, Nicole and Henriques, Irene and Sadorsky, Perry, Adopting Proactive Environmental Strategy: The Influence of Stakeholders and Firm Size (July 26, 2009). Journal of Management Studies, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1439151

Nicole Darnall (Contact Author)

Arizona State University - School of Sustainability ( email )

800 S Cady Mall, PO Box 87402
Tempe, AZ 85287-5402
United States
602.496.0445 (Phone)

HOME PAGE: http://https://isearch.asu.edu/profile/1811617

Irene Henriques

York University - Schulich School of Business ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada

Perry Sadorsky

York University - Schulich School of Business ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada

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