Environmental Capabilities and Corporate Strategy: Exploring Acquisitions Among US Manufacturing Firms

45 Pages Posted: 25 Aug 2011

See all articles by Luca Berchicci

Luca Berchicci

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM)

Glen Dowell

Cornell University - Johnson Graduate School of Management

Andrew A. King

Questrom School of Business- Boston University

Date Written: August 24, 2011

Abstract

In this article, we investigate whether environmental capabilities influence firms’ corporate strategies, a topic that has received little attention to date. We hypothesize that firms are more likely to acquire facilities when ownership facilitates the transfer of capabilities either to or from the facility. Using a panel from the US government’s Toxics Release Inventory program, we find firms with superior environmental capabilities are significantly more likely to acquire physically proximate facilities with inferior environmental capabilities and vice versa. Our results extend theories of both corporate and environmental strategy.

Suggested Citation

Berchicci, Luca and Dowell, Glen and King, Andrew A., Environmental Capabilities and Corporate Strategy: Exploring Acquisitions Among US Manufacturing Firms (August 24, 2011). Johnson School Research Paper Series No. 33-2011, Available at SSRN: https://ssrn.com/abstract=1916306 or http://dx.doi.org/10.2139/ssrn.1916306

Luca Berchicci (Contact Author)

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

Glen Dowell

Cornell University - Johnson Graduate School of Management ( email )

Ithaca, NY 14853
United States

Andrew A. King

Questrom School of Business- Boston University ( email )

Boston, MA 02215
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
127
Abstract Views
1,163
rank
320,925
PlumX Metrics