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Sustainable development and environmental policy: The engagement of stakeholders in green products in Vietnam
Author(s) -
Le Van Quang,
Viet Nguyen Thanh,
Nguyen Manh Hung
Publication year - 2019
Publication title -
business strategy and the environment
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.123
H-Index - 105
eISSN - 1099-0836
pISSN - 0964-4733
DOI - 10.1002/bse.2272
Subject(s) - diversification (marketing strategy) , business , stakeholder , stakeholder engagement , sustainable development , green innovation , transparency (behavior) , industrial organization , product (mathematics) , corporate social responsibility , new product development , marketing , economics , public relations , management , geometry , mathematics , political science , law
Facing the challenge of environmental degradation in Vietnam, a growing number of firms have begun to integrate environmental management systems into their business strategies and develop green product diversification strategies. On the basis of the stakeholder theory, this paper attempts to explore the influences of stakeholders on the implementation of horizontal and vertical green product diversification. Empirical results show that foreign customers play a significant role in driving companies to adopt strategy of green product diversification. For foreign‐invested enterprises, the effect is limited to the adoption of horizontal green product diversification. It further reveals that institutional weakness, lack of transparency, community stakeholders, and regulatory stakeholders have no significant effect on the corporate green product strategy.