Abstract
As it has become more and more urgent to solve the problems of environmental protection, we consider it necessary to conduct multilevel studies to examine the impact of business strategy on both employees’ and firms’ performances in environmental protection. Synthesizing the perspectives of strategic orientation, corporate strategy, and firm performance, we propose a comprehensive theoretical model linking market orientation and environmental performance. Based on a survey of 134 matched chief executive officers, senior marketing managers and frontline workers from Chinese firms, we found that market orientation positively affects environmental strategy which, in turn, influences both environmental product quality and employees’ environmental involvement. These latter two variables consequently have a positive influence on environmental performance. At the same time, environmental commitment moderates the link between market orientation and environmental strategy.
Similar content being viewed by others
Notes
As an environment that encompasses the interaction of all living species, the natural environment encompasses all living and non-living things occurring naturally on earth or some region thereof (Johnson et al. 1997).
Before testing our hypotheses using structural equation modeling, we applied regression analyses and assessed the multicollinearity using the variance inflation factor (VIF). Research (e.g., Joreskog and Sorbom 1989) suggests that a VIF score greater than 4.0 may indicate an unacceptable multicollinearity. The VIFs for our regression analyses are well below 4.0 so that we conclude there is no evidence of significant multicollinearity in our regressions.
References
Aguinis, H., & Glavas, A. (2012). What we know and don’t know about corporate social responsibility a review and research agenda. Journal of Management, 38(4), 932–968.
Alvarez Gil, M., Burgos Jiménez, J., & Céspedes Lorente, J. (2001). An analysis of environmental management, organizational context and performance of Spanish hotels. Omega, 29(6), 457–471.
Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411–423.
Aragon-Correa, J. A., Hurtado-Torres, N., Sharma, S., & Garcia-Morales, V. J. (2008). Environmental strategy and performance in small firms: A resource-based perspective. Journal of Environmental Management, 86, 88–103.
Aragon-Correa, J., & Sharma, S. (2003). A contingent resource-based view of proactive corporate environmental strategy. Academy of Management Review, 28(1), 71–88.
Argenti, P. A. (1998). Strategic employee communications. Human Resource Management, 37(3–4), 199–206.
Atuahene-Gima, K., Slater, S. F., & Olson, E. M. (2005). The contingent value of responsive and proactive market orientations for new product program performance. Journal of Product Innovation Management, 22(6), 464–482.
Autio, E., Sapienza, H. J., & Almeida, J. G. (2000). Effects of age at entry, knowledge intensity, and imitability on international growth. Academy of Management Journal, 43(5), 909–924.
Baker, W. E., & Sinkula, J. M. (2005a). Environmental marketing strategy and firm performance: Effects on new product performance and market share. Journal of the Academy of Marketing Science, 33(4), 461–475.
Baker, W. E., & Sinkula, J. M. (2005b). Market orientation and the new product paradox. Journal of Product Innovation Management, 22(6), 483–502.
Banerjee, S. B. (2002). Corporate environmentalism: The construct and its measurement. Journal of Business Research, 55(3), 177–191.
Banerjee, S. B., Iyer, E. S., & Kashyap, R. K. (2003). Corporate environmentalism: Antecedents and influence of industry type. Journal of Marketing, 67(2), 106–122.
Bansal, P., & Roth, K. (2000). Why companies go green: A model of ecological responsiveness. Academy of Management Journal, 43(4), 717–736.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
Bentler, P. M., & Bonett, D. G. (1980). Significance tests and goodness of fit in the analysis of covariance structures. Psychological Bulletin, 88(3), 588–606.
Boehe, D. M., & Cruz, L. B. (2010). Corporate social responsibility, product differentiation strategy and export performance. Journal of Business Ethics, 91(2), 325–346.
Boiral, O. (2009). Greening the corporation through organizational citizenship behaviors. Journal of Business Ethics, 87(2), 221–236.
Boiral, O., Cayer, M., & Baron, C. M. (2009). The action logics of environmental leadership: A developmental perspective. Journal of Business Ethics, 85(4), 479–499.
Boiral, O., Henri, J.-F., & Talbot, D. (2012). Modeling the impacts of corporate commitment on climate change. Business Strategy and the Environment, 21(8), 495–516.
Boiral, O., & Paillé, P. (2012). Organizational citizenship behaviour for the environment: Measurement and validation. Journal of Business Ethics, 109(4), 431–446.
Branzei, O., Ursacki Bryant, T. J., Vertinsky, I., & Zhang, W. (2004). The formation of green strategies in Chinese firms: Matching corporate environmental responses and individual principles. Strategic Management Journal, 25(11), 1075–1095.
Brislin, R. W. (1980). Translation and content analysis of oral and written material. In H. C. Triandis & J. W. Berry (Eds.), Handbook of cross-cultural psychology (pp. 398–444). Boston: Allyn & Bacon.
Chan, D. (1998). Functional relations among constructs in the same content domain at different levels of analysis: A typology of composition models. Journal of Applied Psychology, 83(2), 234–246.
Chan, R. Y. K. (2005). Does the natural resource based view of the firm apply in an emerging economy? A survey of foreign invested enterprises in China. Journal of Management Studies, 42(3), 625–672.
Chan, R. (2010). Corporate environmentalism pursuit by foreign firms competing in China. Journal of World Business, 45(1), 80–92.
Chan, R. Y. K., He, H., Chan, H. K., & Wang, W. Y. C. (2012). Environmental orientation and corporate performance: The mediation mechanism of green supply chain management and moderating effect of competitive intensity. Industrial Marketing Management, 41(4), 621–630.
Chen, G., Mathieu, J. E., & Bliese, P. D. (2004). A framework for conducting multi-level construct validation. Research in Multi-Level Issues, 3, 273–303.
Christmann, P. (2000). Effects of “best practices” of environmental management on cost advantage: The role of complementary assets. Academy of Management Journal, 43(4), 663–680.
Christmann, P., & Taylor, G. (2001). Globalization and the environment: Determinants of firm self-regulation in China. Journal of International Business Studies, 32(3), 439–458.
Cortina, J. M., Chen, G., & Dunlap, W. P. (2001). Testing interaction effects in LISREL: Examination and illustration of available procedures. Organizational Research Methods, 4(4), 324–360.
Crittenden, V. L., Crittenden, W. F., Ferrell, L. K., Ferrell, O. C., & Pinney, C. C. (2011). Market-oriented sustainability: A conceptual framework and propositions. Journal of the Academy of Marketing Science, 39(1), 71–85.
Cruz, L. B., Boehe, D. M., & Ogasavara, M. H. (2013). CSR-based differentiation strategy of export firms from developing countries: An exploratory study of the strategy tripod. Business and Society,. doi:10.1177/0007650312473728.
Daily, B. F., Bishop, J. W., & Govindarajulu, N. (2009). A conceptual model for organizational citizenship behavior directed toward the environment. Business and Society, 48(2), 243–256.
Daily, B. F., & Huang, S. (2001). Achieving sustainability through attention to human resource factors in environmental management. International Journal of Operations & Production Management, 21(12), 1539–1552.
Darnall, N., & Edwards, D. (2006). Predicting the cost of environmental management system adoption: The role of capabilities, resources and ownership structure. Strategic Management Journal, 27(4), 301–320.
Darnall, N., Jolley, G. J., & Handfield, R. (2008). Environmental management systems and green supply chain management: Complements for sustainability? Business Strategy and the Environment, 17(1), 30–45.
Davies, H., & Walters, P. (2004). Emergent patterns of strategy, environment and performance in a transition economy. Strategic Management Journal, 25(4), 347–364.
del Brío, J. Á., Fernández, E., & Junquera, B. (2007). Management and employee involvement in achieving an environmental action-based competitive advantage: An empirical study. International Journal of Human Resource Management, 18(4), 491–522.
Denton, D. K. (1999). Employee involvement, pollution control and pieces to the puzzle. Environmental Management and Health, 10(2), 105–111.
Deshpande, R., & Webster, F. E., Jr. (1989). Organizational culture and marketing: Defining the research agenda. Journal of Marketing, 53(1), 3–15.
DeSimone, L. D., & Popoff, F. (2000). Eco-efficiency: The business link to sustainable development. London: MIT Press.
Dess, G. G., & Beard, D. W. (1984). Dimensions of organizational task environments. Administrative Science Quarterly, 29, 52–73.
Dibrell, C., Craig, J., & Hansen, E. (2011). Natural environment, market orientation, and firm innovativeness: An organizational life cycle perspective. Journal of Small Business Management, 49(3), 467–489.
Drucker, P. F. (1954). The practice of management. New York: Harper.
Drucker, P. F. (2006). What executives should remember. Harvard Business Review, 84(2), 144–153.
Dunk, A. S. (2002). Product quality, environmental accounting and quality performance. Accounting, Auditing & Accountability Journal, 15(5), 719–732.
Dyllick, T., & Hockerts, K. (2002). Beyond the business case for corporate sustainability. Business Strategy and the Environment, 11(2), 130–141.
Etzion, D. (2009). Creating a better environment for finance. Sloan Management Review, 50(4), 21–22.
Evans, J. R., & Lindsay, W. M. (2002). The management and control of quality. Cincinnati, OH: South-Western.
Fernández, E., Junquera, B., & Ordiz, M. (2003). Organizational culture and human resources in the environmental issue: A review of the literature. International Journal of Human Resource Management, 14(4), 634–656.
Florida, R. L. (1996). Lean and green: The move to environmentally conscious manufacturing. California Management Review, 39(1), 80–105.
Gabrielli de Azeve, J. S. (2009). The greening of Petrobras. Harvard Business Review, 87(3), 43–47.
Gilley, K., Worrell, D., Davidson, W., & El-Jelly, A. (2000). Corporate environmental initiatives and anticipated firm performance: The differential effects of process-driven versus product-driven greening initiatives. Journal of Management, 26(6), 1199–1216.
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2010). Multivariate data analysis. Upper Saddle River, NJ: Pearson Education.
Hanna, M. D., Newman, W. R., & Johnson, P. (2000). Linking operational and environmental improvement through employee involvement. International Journal of Operations & Production Management, 20(2), 148–165.
Hart, S. L. (1995). A natural-resource-based view of the firm. Academy of Management Review, 20(4), 986–1014.
Henriques, I., & Sadorsky, P. (1999). The relationship between environmental commitment and managerial perceptions of stakeholder importance. Academy of Management Journal, 42(1), 87–99.
Homburg, C., & Pflesser, C. (2000). A multiple-layer model of market-oriented organizational culture: Measurement issues and performance outcomes. Journal of marketing research, 37(4), 449–462.
Hui, C., Lee, C., & Rousseau, D. M. (2004). Psychological contract and organizational citizenship behavior in China: Investigating generalizability and instrumentality. Journal of Applied Psychology, 89(2), 311–321.
Hult, G. T. M. (2011). Market-focused sustainability: Market orientation plus! Journal of the Academy of Marketing Science, 39(1), 1–6.
Hult, G. T. M., & Ketchen, D. J., Jr. (2001). Does market orientation matter?: A test of the relationship between positional advantage and performance. Strategic Management Journal, 22(9), 899–906.
Hult, G. T. M., Ketchen, D. J., Jr., & Slater, S. F. (2005). Market orientation and performance: An integration of disparate approaches. Strategic Management Journal, 26(12), 1173–1181.
James, L. R., Demaree, R. G., & Wolf, G. (1984). Estimating within-group interrater reliability with and without response bias. Journal of Applied Psychology, 69(1), 85–98.
Jaworski, B. J., & Kohli, A. K. (1993). Market orientation: Antecedents and consequences. Journal of Marketing, 57(3), 53–70.
Jiang, R., & Bansal, P. (2003). Seeing the need for ISO 14001. Journal of Management Studies, 40(4), 1047–1067.
Johnson, D., Ambrose, S., Bassett, T., Bowen, M., Crummey, D., Isaacson, J., et al. (1997). Meanings of environmental terms. Journal of Environmental Quality, 26(3), 581–589.
Joreskog, K. G., & Sorbom, D. (1989). LISREL 7: A guide to the program and applications. Chicago: SPSS Inc.
Judge, W. Q., & Douglas, T. J. (1998). Performance implications of incorporating natural environmental issues into the strategic planning process: An empirical assessment. Journal of Management Studies, 35(2), 241–262.
Judge, W. Q., & Elenkov, D. (2005). Organizational capacity for change and environmental performance: An empirical assessment of Bulgarian firms. Journal of Business Research, 58(7), 893–901.
Keogh, P. D., & Polonsky, M. J. (1998). Environmental commitment: A basis for environmental entrepreneurship? Journal of Organizational Change, 11(1), 38–49.
Ketchen, D. J., Hult, G. T. M., & Slater, S. F. (2007). Toward greater understanding of market orientation and the resource-based view. Strategic Management Journal, 28(9), 961–964.
King, A. A., & Lenox, M. J. (2001). Does it really pay to be green? An empirical study of firm environmental and financial performance: An empirical study of firm environmental and financial performance. Journal of Industrial Ecology, 5(1), 105–116.
King, A. W., & Zeithaml, C. P. (2001). Competencies and firm performance: Examining the causal ambiguity paradox. Strategic Management Journal, 22(1), 75–99.
Kirca, A. H., Jayachandran, S., & Bearden, W. O. (2005). Market orientation: A meta-analytic review and assessment of its antecedents and impact on performance. Journal of Marketing, 69(2), 24–41.
Kitazawa, S., & Sarkis, J. (2000). The relationship between ISO 14001 and continuous source reduction programs. International Journal of Operations & Production Management, 20(2), 225–248.
Klassen, R. D. (2000). Exploring the linkage between investment in manufacturing and environmental technologies. International Journal of Operations & Production Management, 20(2), 127–147.
Klassen, R., & McLaughlin, C. (1996). The impact of environmental management on firm performance. Management Science, 42(8), 1199–1214.
Klassen, R. D., & Whybark, D. C. (1999). The impact of environmental technologies on manufacturing performance. Academy of Management Journal, 42(6), 599–615.
Kohli, A. K., & Jaworski, B. J. (1990). Market orientation: The construct, research propositions, and managerial implications. Journal of Marketing, 54(2), 1–18.
Kuei, C. -H., Chow, W. S., Madu, C. N., Wu, J. P. 2012. Identifying critical enablers to high performance environmental management: An empirical study of Chinese firms. Journal of Environmental Planning and Management 1–28 (in press).
Lee, K.-H., & Ball, R. (2003). Achieving sustainable corporate competitiveness: Strategic link between top management’s (green) commitment and corporate environmental strategy. Greener Management International, 44(Winter), 89–104.
Li, J., & Tang, Y. (2010). CEO hubris and firm risk taking in China: The moderating role of managerial discretion. Academy of Management Journal, 53(1), 45–68.
Liu, S. S., Luo, X., & Shi, Y. Z. (2003). Market-oriented organizations in an emerging economy: A study of missing links. Journal of Business Research, 56(6), 481–491.
Lopez-Gamero, M. D., Claver-Cortes, E., & Molina-Azorin, J. F. (2008). Complementary resources and capabilities for an ethical and environmental management: A qual/quan study. Journal of Business Ethics, 82(3), 701–732.
Lopez-Gamero, M., Molina-Azorin, J., & Claver-Cortes, E. (2009). The whole relationship between environmental variables and firm performance: Competitive advantage and firm resources as mediator variables. Journal of Environmental Management, 90(10), 3110–3121.
Luca, L. M. D., & Atuahene-Gima, K. (2007). Market knowledge dimensions and cross-functional collaboration: Examining the different routes to product innovation performance. Journal of Marketing, 71(1), 95–112.
Lynes, J. K., & Andrachuk, M. (2008). Motivations for corporate social and environmental responsibility: A case study of Scandinavian Airlines. Journal of International Management, 14(4), 377–390.
MacCallum, R. C., Browne, M. W., & Sugawara, H. M. (1996). Power analysis and determination of sample size for covariance structure modeling. Psychological Methods, 1(2), 130–149.
Maignan, I., Ferrell, O. C., & Hult, G. T. M. (1999). Corporate citizenship: cultural antecedents and business benefits. Journal of the Academy of Marketing Science, 27(4), 455–469.
Marsh, H. W., Wen, Z., & Hau, K. T. (2004). Structural equation models of latent interactions: Evaluation of alternative estimation strategies and indicator construction. Psychological Methods, 9(3), 275–300.
Maxwell, S. E., & Delaney, H. D. (1993). Bivariate median splits and spurious statistical significance. Psychological Bulletin, 113(1), 181–190.
McDonough, W., & Braungart, M. (2002). Cradle to cradle: Remaking the way we make things. New York: North Point Press.
McWilliams, A., & Siegel, D. (2001). Corporate social responsibility: A theory of the firm perspective. Academy of Management Review, 26(1), 117–127.
Menguc, B., Auh, S., & Ozanne, L. (2010). The interactive effect of internal and external factors on a proactive environmental strategy and its influence on a firm’s performance. Journal of Business Ethics, 94(2), 279–298.
Menon, A., & Menon, A. (1997). Enviropreneurial marketing strategy: The emergence of corporate environmentalism as market strategy. Journal of Marketing, 61(1), 51–67.
Miles, M. P., & Covin, J. G. (2000). Environmental marketing: A source of reputational, competitive, and financial advantage. Journal of Business Ethics, 23(3), 299–311.
Molina-Azorín, J. F., Claver-Cortés, E., Pereira-Moliner, J., & Tarí, J. J. (2009). Environmental practices and firm performance: An empirical analysis in the Spanish hotel industry. Journal of Cleaner Production, 17(5), 516–524.
Muller, A., & Kolk, A. (2010). Extrinsic and intrinsic drivers of corporate social performance: Evidence from foreign and domestic firms in Mexico. Journal of Management Studies, 47(1), 1–26.
Murray, J. Y., Gao, G. Y., & Kotabe, M. (2011). Market orientation and performance of export ventures: The process through marketing capabilities and competitive advantages. Journal of the Academy of Marketing Science, 39(2), 252–269.
Narver, J. C., & Slater, S. F. (1990). The effect of a market orientation on business profitability. Journal of Marketing, 54(4), 20–35.
Narver, J. C., Slater, S. F., & MacLachlan, D. L. (2004). Responsive and proactive market orientation and new product success. Journal of Product Innovation Management, 21(5), 334–347.
Orlitzky, M., Siegel, D. S., & Waldman, D. A. (2011). Strategic corporate social responsibility and environmental sustainability. Business and Society, 50(1), 6–27.
Paillé, P., Chen, Y., Boiral, O., & Jin, J. F. (2013). The impact of human resource management on environmental performance: An employee-level study. Journal of Business Ethics,. doi:10.1007/s10551-013-1732-0.
Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903.
Porter, M. E., & Kramer, M. R. (2006). Strategy and society. Harvard Business Review, 84(12), 78–92.
Pujari, D., Wright, G., & Peattie, K. (2003). Green and competitive: Influences on environmental new product development performance. Journal of Business Research, 56(8), 657–671.
Ramus, C. A. (2001). Organizational support for employees: Encouraging creative ideas for environmental sustainability. California Management Review, 43(3), 85–105.
Riordan, C. M., Vandenberg, R. J., & Richardson, H. A. (2005). Employee involvement climate and organizational effectiveness. Human Resource Management, 44(4), 471–488.
Rodgers, R., Hunter, J. E., & Rogers, D. L. (1993). Influence of top management commitment on management program success. Journal of Applied Psychology, 78(1), 151–155.
Rousseau, D. M. (1985). Issues of levels in organizational research: Multi-level and cross-level. Research in organizational behavior, 7, 1–37.
Roy, M. J., Boiral, O., & Lagacé, D. (2001). Environmental commitment and manufacturing excellence: A comparative study within Canadian industry. Business Strategy and the Environment, 10(5), 257–268.
Rueda-Manzanares, A., Aragon Correa, J. A., & Sharma, S. (2008). The influence of stakeholders on the environmental strategy of service firms: The moderating effects of complexity, uncertainty and munificence. British Journal of Management, 19(2), 185–203.
Sen, S., & Bhattacharya, C. B. (2001). Does doing good always lead to doing better? Consumer reactions to corporate social responsibility. Journal of Marketing Research, 38(2), 225–243.
Sharma, S. (2000). Managerial interpretations and organizational context as predictors of corporate choice of environmental strategy. Academy of Management Journal, 43(4), 681–697.
Sharma, S., Aragon-Correa, J., & Rueda-Manzanares, A. (2007). The contingent influence of organizational capabilities on proactive environmental strategy in the service sector: An analysis of North American and European ski resorts. Canadian Journal of Administrative Sciences, 24(4), 268–283.
Sharma, S., & Vredenburg, H. (1998). Proactive corporate environmental strategy and the development of competitively valuable organizational capabilities. Strategic Management Journal, 19(8), 729–753.
Shenkar, O. (1994). The People’s Republic of China: Raising the bamboo screen through international management research. International Studies of Management & Organization, 24(1/2), 9–34.
Shrivastava, P. (1995a). Environmental technologies and competitive advantage. Strategic Management Journal, 16(S1), 183–200.
Shrivastava, P. (1995b). The role of corporations in achieving ecological sustainability. Academy of Management Review, 20(4), 936–960.
Siegel, D. S. (2009). Green management matters only if it yields more green: An economic/strategic perspective. Academy of Management Perspectives, 23(3), 5–16.
Slater, S. F., & Narver, J. C. (1995). Market orientation and the learning organization. Journal of Marketing, 59(3), 63–74.
Stites, J. P., & Michael, J. H. (2011). Organizational commitment in manufacturing employees: Relationships with corporate social performance. Business and Society, 50(1), 50–70.
Van Bruggen, G. H., Lilien, G. L., & Kacker, M. (2002). Informants in organizational marketing research: Why use multiple informants and how to aggregate responses. Journal of Marketing Research, 34(4), 469–478.
Venkatraman, N., & Ramanujam, V. (1986). Measurement of business performance in strategy research: A comparison of approaches. Academy of Management Review, 11, 801–814.
Wade, M., & Hulland, J. (2004). Review: The resource-based view and information systems research: Review, extension, and suggestions for future research. MIS Quarterly, 28(1), 107–142.
Walley, E., & Stubbs, M. (2000). Termites and champions: Case comparisons by metaphor. Greener Management International, 29, 41–54.
Watson, R., Boudreau, M., & Chen, A. (2010). Information systems and environmentally sustainable development: Energy informatics and new directions for the IS community. MIS Quarterly, 34(1), 23–38.
WBCSD. (2000). Measuring eco-efficiency: A guide to reporting company performance. Geneva: WBCSD.
Wei, L. Q., & Lau, C. M. (2008). The impact of market orientation and strategic HRM on firm performance: The case of Chinese enterprises. Journal of International Business Studies, 39(6), 980–995.
Yannopoulos, P., Auh, S., & Menguc, B. (2012). Achieving fit between learning and market orientation: Implications for new product performance. Journal of Product Innovation Management, 29(4), 531–545.
Zhang, X., & Bartol, K. M. (2010). Linking empowering leadership and employee creativity: The influence of psychological empowerment, intrinsic motivation, and creative process engagement. Academy of Management Journal, 53(1), 107–128.
Zhang, H. C., Kuo, T. C., Lu, H., & Huang, S. H. (1997). Environmentally conscious design and manufacturing: A state-of-the-art survey. Journal of Manufacturing Systems, 16(5), 352–371.
Zhou, K. Z., Kin, C., & Tse, D. K. (2005). The effects of strategic orientations on technology-and market-based breakthrough innovations. Journal of Marketing, 69(2), 42–60.
Zhou, K. Z., Li, J. J., Zhou, N., & Su, C. (2008). Market orientation, job satisfaction, product quality, and firm performance: Evidence from China. Strategic Management Journal, 29(9), 985–1000.
Acknowledgement
This paper was supported by Humanities and Social Sciences Foundation of the Ministry of Education of China (No. 10YJC630258), National Social Science Fund (No. 13CGL072), and Shanda Independent Innovation Fund (No. IFW12063; No. IFYT12063).
Author information
Authors and Affiliations
Corresponding author
Appendix: Items for Primary Measures
Appendix: Items for Primary Measures
Market orientation [from Zhou et al. (2008)]
Customer orientation
-
1.
Our business objectives are driven primarily by customer satisfaction.
-
2.
Our strategies are driven by beliefs about how we can create greater value for customers.
-
3.
We emphasize constant commitment to serving customer needs.
Competitor orientation
-
1.
We regularly share information concerning competitors’ strategies.
-
2.
We emphasize the fast response to competitive actions that threaten us.
Inter-functional coordination
-
1.
We regularly communicate information on customer needs across all business functions.
-
2.
We frequently discuss market trends across all business functions.
-
3.
All of our business functions are integrated in serving the needs of our target markets.
Environmental strategy [from Banerjee et al. (2003)]
-
1.
Our firm has integrated environmental issues into our strategic planning process.
-
2.
In our firm, quality includes reducing the environmental impact of products and processes.
-
3.
At our firm we make every effort to link environmental objectives with our other corporate goals.
-
4.
Environmental issues are always considered when we develop new products.
Environmental product quality [from Kuei et al. (2012) and Dunk 2002]
-
1.
Our firm improves the overall product quality due to green product innovation
-
2.
Our firm improves the overall product quality due to green process innovation
-
3.
Our firm improves the overall product quality due to green project innovation
-
4.
Our firm improves the overall product quality due to green managerial innovation
Employees’ environmental involvement [from del Brío et al. (2007)]
-
1.
In our firm, environmental issue is included in our tasks
-
2.
In our firm, we involve in and are responsible for emergent environmental answers
-
3.
Our firm treats our suggestions as idea sources in order to improve the environmental performance
-
4.
Our firm has formal teams in order to identify the environmental problems and opportunities, and to suggest solutions
Environmental commitment [from Banerjee et al. (2003)]
-
1.
The top management team in our firm is committed to environmental preservation.
-
2.
Our firm’s environmental efforts receive full support from our top management.
-
3.
Our firm’s environmental strategies are driven by the top management team.
Environmental performance [from Judge and Douglas (1998)]
-
1.
Complying with environmental regulations
-
2.
Preventing and mitigating environmental crises
-
3.
Limiting environmental impact beyond regulatory compliance
-
4.
Educating employees and the public about the environment
Financial performance [from Judge and Douglas (1998)]
-
1.
Our profitability has been substantially better.
-
2.
Our return on investment has been substantially better.
-
3.
Our sales growth has been substantially better.
Rights and permissions
About this article
Cite this article
Chen, Y., Tang, G., Jin, J. et al. Linking Market Orientation and Environmental Performance: The Influence of Environmental Strategy, Employee’s Environmental Involvement, and Environmental Product Quality. J Bus Ethics 127, 479–500 (2015). https://doi.org/10.1007/s10551-014-2059-1
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10551-014-2059-1