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What Drives Successful Implementation of Product Stewardship Strategy? The Role of Absorptive Capability
Author(s) -
Bhupendra Kumar Verma,
Sangle Shirish
Publication year - 2017
Publication title -
corporate social responsibility and environmental management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.519
H-Index - 73
eISSN - 1535-3966
pISSN - 1535-3958
DOI - 10.1002/csr.1394
Subject(s) - business , scope (computer science) , absorptive capacity , stewardship (theology) , product (mathematics) , knowledge management , stakeholder , position (finance) , process management , dynamic capabilities , marketing , industrial organization , management , computer science , geometry , mathematics , finance , politics , political science , economics , law , programming language
Implementation of Product Stewardship Strategy (PSS) requires integration of ‘voices of stakeholders’ in business decisions to create ‘differentiation’ in the market place. Considering that absorptive capability (AC) is a critical aspect of organizational learning, it may deliver dynamic integration of stakeholder's expectations and know‐how in decision making. This paper attempts to link the attributes of AC with the features of PSS and presents outcomes of an empirical study of sixty Indian firms from several industry sectors. The result shows that firms demonstrating the traits of AC are in better position to implement PSS. This study also expands the scope of AC by including the additional source of knowledge as societal‐stakeholders to provide a comprehensive view that this type of knowledge is complimentary to technological and market knowledge for sustainable commercial success. Based on the research findings, the paper proposes some important managerial implications and suggests direction for future research. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment