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

23 Pages Posted: 26 Jul 2010  

Nicole Darnall

Arizona State University - School of Public Affairs & School of Sustainability

Irene Henriques

York University - Schulich School of Business

Perry Sadorsky

York University - Schulich School of Business

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.

Suggested Citation

Darnall, Nicole and Henriques, Irene and Sadorsky, Perry, Adopting Proactive Environmental Strategy: The Influence of Stakeholders and Firm Size. Journal of Management Studies, Vol. 47, Issue 6, pp. 1072-1094, September 2010. Available at SSRN: https://ssrn.com/abstract=1647248 or http://dx.doi.org/10.1111/j.1467-6486.2009.00873.x

Nicole Darnall (Contact Author)

Arizona State University - School of Public Affairs & School of Sustainability ( email )

411 N Central Avenue, Ste. 400, MC 3720
Phoenix, AZ 85004-0687
United States
602.496.0445 (Phone)

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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