Environmental proactivity, competitive strategy, and market performance: the mediating role of environmental reputation

Nguyen Phong Nguyen, Samuel Adomako

    Research output: Contribution to journalArticlepeer-review

    Abstract

    This article examines the impact of small and medium-sized enterprises' (SMEs) proactive environmental strategy on market performance through the mediating mechanism of environmental reputation. In addition, we investigate the potential moderating role of competitive strategies on the environmental reputation-market performance nexus. Data were collected from 223 SMEs. Using the hierarchical multiple regression analysis, the results show that a proactive environmental strategy positively enhances environmental reputation. Also, the influence of proactively environmental strategy on market performance is mediated by environmental reputation. In addition, our findings show the relationship between environmental reputation and market performance is greater for firms that adopt the differentiation strategy but not significant for firms adopting the low-cost and integrated strategies. Our study offers several theoretical and practical implications.
    Original languageEnglish
    Pages (from-to)2008-2020
    Number of pages13
    JournalBusiness Strategy and the Environment
    Volume30
    Issue number4
    Early online date13 Jan 2021
    DOIs
    Publication statusPublished - May 2021

    Keywords

    • competitive strategy
    • environmental reputation
    • environmental strategy
    • Ghana
    • market performance
    • SMEs

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